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Real Estate in Brazil -
Size Does Matter: Adding It All Up
By Boris Goldshmit
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| Boris Goldshmit is the publisher of
the magazine Lifestyles Brazil Digest. The magazine is available
for sale at the newsstands and bookstores in Rio de Janeiro and São
Paulo. You can contact Boris at support@lifestylesbrazil.com
if you have any questions or wish to purchase a copy of the magazine or
the Pocket Dictionary of Brazilian-Portuguese Real Estate and Legal Terminology |
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| One of the first things a real estate
buyer wants to know about a property is the exact square footage or yardage.
Generally speaking, this bit of information is a major factor in calculating
a fair market price. Under most circumstances, the owners, real estate
brokers and property listings readily provide accurate dimensions of a
property. This is the system most folks are accustomed to. But in Brazil,
none of the old rules apply…. |
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An unsuspecting
buyer, one who is new to the Brazilian real estate market, is likely to
be baffled by at least three conflicting measurements that are listed for
the same property.
First, there
are the legal measurements listed in Matrícula (Property Title).
Any old Brazilian hand knows that the official property size stated on
the Title and listed in the IPTU Carnê (Municipal Tax Payment Coupon
Book) is wrong 99 times out of 100. It is part of the age-old game that
Brazilians play with their tax authorities: More than likely, the stated
dimensions are smaller than the actual property size.
Chances are
that the service area and the balcony(s) of a house or an apartment are
not taken into consideration. It is also very likely that structural extensions
and changes that occurred after the original measurements were officially
recorded have been conveniently forgotten.
It is important
to note that the properties we are referring to are not located in the
mushrooming urban favelas or lightly controlled remote villages situated
in far-away Amazonian Jungles. In 199_, Prefeitura (City Hall) of Rio de
Janeiro conducted a study of the legal property documents in the affluent
neighborhoods in the municipality of Rio de Janeiro. It found that as many
as 70% of the official dimensions recorded in the property deed and the
Real Estate records of apartments and houses do not correlate with their
real size.
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The second measurement
you will come across is the one your friendly local Real Estate Broker
provides. Again, be wary. Considering that in many cases, the brokers do
not review the actual property documents or even visit the space before
starting to sell it, this information is not to be taken seriously.
Additionally, when a broker does
check the legal documents and/or talk to the owners, significant modifications
are likely to occur. Areas originally not included in the official records,
such as the elevator shaft, common hall, staircase, and even the trash
chute, suddenly become part of the burgeoning apartment. Similarly, in
the case of a house, chunks of neighbors´ lots, public streets, and
nearby rivers somehow become incorporated into the total size.
The third property measurement will
come from the owners. They would never rely on what is stated in the IPTU
Carnê and will very often inflate the size of the space by anywhere
from 10% to 50%, depending on how badly they needed the extra money.
There is no empirical method of measurement involved in producing these
numbers. The dimensions offered by these three interested parties
are speculative and are usually well above the real size. |
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So neither broker nor the owner
bothers to personally measure the property and cross-check the measurements
with the official (yet still questionable) data. All things considered,
this mostly overlooked technique of measuring the dimensions by hand is
the only truly reliable method.
So, when viewing a property, bring
your own tape measure, unless you wish to pay for the imaginary square
footage.
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| Boris Goldshmit
is the publisher of the magazine Lifestyles Brazil Digest. The magazine
is available for sale at the newsstands and bookstores in Rio de Janeiro
and São Paulo.
You can contact Boris
at support@lifestylesbrazil.com
if you have any questions or wish to purchase a copy of the magazine or
the Pocket Dictionary of Brazilian-Portuguese Real Estate and Legal Terminology |
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