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Brazil teak forestry SCAM - help with land ownership query

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eng

5/16/2014 09:33 EST

Hi,

I am (one of the many) helpless investor who have invested in a plot of land with teak trees, located in Belem (Para) via a UK company. Now the company is currently in liquidation and the two directors have declared personal bankruptcy (so all the rent + capital they owe us were never paid back)

We would like to understand what we were actually being sold and after many unsuccessful attempts to find any local (Brazil) assistance, I found this forum and hope someone with some knowledge in the area would give us some insight in relation to land ownership in Brazil.

We (the group of investors) were led to believe that we were sold a full leasehold title of the plot of land, and hence when the company goes down, the plot of land would be the security for us. However, after given our contracts to a UK lawyer for review, we were told that what we were sold are no more than a license to the rental income derived from the plot of land and the thinning of the teak trees. As such, we are looking for avenues to confirm whether we were sold a full leasehold title or a license that’s worthless.

I’d be grateful if anyone could help as answering a few questions:

- How do you find out who owns particular plots of land in Belem (Para) ? Are there any public records for this?

- From my understanding, the UK company who sold us the trees + land, owns a Brazilian company which owns the land. Is it even possible for them to divide the land and sell it on to individual investors?

- What kind of certificate does one need to have in order to have a full ‘leasehold’ title to a land plot?

If you’re unable to answer the questions, but have a contact who has the knowledge who you can refer me to, that would be much appreciated too!

Many thanks!!

Regards,
Elsa

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Marlington

5/16/2014 12:11 EST

Dear Elsa, I am a Real Estate Broker in the southern Brazilian state of Santa Catarina. Real Estate scams are very common in Brazil, and they come in all sizes and with all sorts of twists. The applicable documentation is the same all over the country as it is regulated by the Brazilian Constitution and Federal laws. It is very difficult to give you an opinion without seeing the documents you have received but this is a very common risk many well-intentioned foreigners trip on. If I were you I would look for a reputable solicitor in Belem. You should contact the local OAB (Ordem dos Advogados do Brasil) that is the official body regulating the legal profession in this country. I believe they will be able to give you details of one or more reputable, honest solicitors specialising in Real Estate law.
Please keep in mind that the north of Brazil is, in many ways, no-man's land. Most of the country's Real Estate fraud takes place in this region. It is in fact a very complex matter that involves national and international parties, loggers, cattle breeders, property owners and high levels of corruption, to mention just a few of the factors making things very difficult and dangerous there.

I always tell my foreign clients that they must not buy anything anywhere in Brazil without coming down here and seeing things for themselves as well as consulting a decent, knowledgeable LOCAL solicitor (unfortunately not all of them are decent).

Fortunately, I have been able to put together an excellent team that ensures a good ending to all transactions.

Here are the contact details for the Para OAB:

OAB/PA
Address: Praça Barão do Rio Branco, 93 - Campina
Belém-PA - CEP: 66015-060

Fone: +55 91 4006-8600 Fax: +55 91 4006-8603

Please feel free to contact me should you require any further information.

Good luck,
Margaret Arlington
Licensed Real Estate Broker - CRECI-SC 15839

Professional Translator and Interpreter
Any combination of ENGLISH-SPANISH-PORTUGUESE

Destination Services

Florianopolis – Island of Santa Catarina

Santa Catarina – Brazil
Landline: +55 48 3234 7848
Mobile: +55 48 9957 9982 (TIM)
Mobile: +55 48 8464 1874 (Oi)
Mobile: + 55 48 8844 2169 (Claro)

arlingtn@terra.com.br
Skype: marlington

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