Brazil Real Estate: 5 Signs of a Quality Agency

Published on October 1, 2025 and written by Cyril Jarnias

In a real estate market as dynamic as Brazil’s, choosing the right agency can make all the difference between a successful investment and a frustrating experience. Navigating this environment requires not only an understanding of local trends but also trust in the professionals guiding you.

Identifying the signs of a good real estate agency

therefore becomes crucial to take advantage of the opportunities offered by this vast country. Between in-depth market knowledge, reputation built on years of experience, and impeccable customer service, it’s essential to know which criteria to prioritize to make an informed choice.

This article explores the 5 essential signs

that will help you spot a trustworthy agency in Brazil’s competitive real estate landscape.

How to recognize a serious real estate agency in Brazil

Legal and administrative criteria

• Registration with CRECI: a serious agency operates only with brokers duly registered with the Regional Council of Real Estate Agents, with each professional displaying their CRECI number on their cards, website, and contracts. Concrete example: on the agency’s “Team” page, each agent shows “CRECI-SP 123456-F,” and sales agreements bear the same number between the name and signature.
• Compliance with real estate legal framework: brokerage contracts, purchase agreements, and deeds must conform to the Civil Code, Lease Law, and condominium and subdivision rules; property ownership is only transferred after registration at the Real Estate Registry. Concrete example: the agency accompanies the buyer until the “public deed” at the notary’s office and then to the land registry office, providing the “updated property certificate” proving registration and absence of liens.
• Tax and documentary compliance: verification of the buyer’s CPF, tax certificates, and any property debts (IPTU, condominium fees) before signing. Concrete example: checklist given to the client with “validated CPF,” “IPTU clearance,” “updated condominium statements,” “negative debt certificates.”

Certifications and affiliations indicating professionalism

• Membership in recognized associations (e.g., SECOVI at the state level, SINDIMÓVEIS, Franco-Brazilian or American-Brazilian chambers of commerce) and participation in local MLS. Concrete example: the agency displays SECOVI-SP and ACIF logos and lists its properties through a regional MLS, providing average sales time statistics.
• Continuing education and specializations (real estate appraisals, LGPD/data protection, rental compliance). Concrete example: certificates for “Real Estate Appraisal” and “LGPD for Real Estate” courses visible in the office and on the website.
• Insurance and internal controls: professional liability insurance policy and KYC/AML procedures for operations with international capital. Concrete example: contractual clause mentioning RC coverage up to R$1,000,000 and signed KYC form in advance.

Transparency on fees and service terms

• Written, accessible, and agreed-upon fee schedule before any marketing or property search; payment terms, calculation basis (percentage or flat fee), and triggers (signing of purchase agreement, sale completion). Concrete example: a “fee table” attached to the brokerage contract sets 5–6% for residential sales and one month’s rent for leasing, with a numerical example.
• Clear clauses on included/excluded services: home staging, professional photos, paid listings, virtual tours, document due diligence. Concrete example: service sheet listing 10 covered portals, 20 HDR photos, 4K video, and publication deadlines (72h).
• Shared performance indicators: average sales time, average discount vs. listed price, lease application rate within 30 days.

Red flags to avoid with real estate agents

Red flags to watch for with a real estate agent in Brazil include lack of transparency, excessive pressure to sign, insufficient legal and local knowledge, and questionable financial track records—each potentially compromising legal security, price, timelines, and the likelihood of completing the transaction under favorable conditions.

Lack of transparency in communication

Why it’s problematic:

• Withholding information about total costs, the property’s legal status, or neighborhood risks prevents the buyer from properly assessing value for money and increases the risk of disputes or sale cancellation in Brazil, where documentary compliance (property registration, permits, absence of disputes) is crucial.
• Incomplete or misleading listings (partial fee schedules, unspecified charges, falsely “exclusive” properties) lead to poor decisions and may hide major fees or constraints.

Concrete examples / cases:

• Listing of an apartment in Rio marked “new” when it has been online for months, without mentioning condominium fees or security deposit—a practice noted in listing audits where a third showed errors or incomplete information.
• Presentation of a property without disclosing the lack of building permits, while the Brazilian market has a high rate of irregular constructions in some major cities.

Impact on the transaction:

Risk of paying more than expected (undisclosed fees/charges), delays in obtaining financing, or even cancellation if irregularities appear during due diligence.

Excessive pressure to close the sale

Why it’s problematic:

Artificial urgency tactics (fake “other buyers,” threats to sell to someone else) lead to hasty decisions, deposits paid outside secure frameworks, and loss of negotiation leverage.

Concrete examples / cases:

• Request for a “reservation” deposit of €5,000 to €10,000 to be quickly transferred to a suspicious account, under the pretext of high competition—a method associated with deceptive practices of dishonest agencies.
• Aggressive door-to-door solicitation or under concealed identity (agent presenting as a private individual) to push for immediate commitment, comparable to aggressive or deceptive commercial practices under similar legal criteria.

Impact on the transaction:

Direct financial loss (non-refundable deposit), choice of non-compliant property, and difficulty enforcing rights if funds were transferred outside an official escrow circuit.

Insufficient knowledge of local market and legislation

Why it’s problematic:

• In Brazil, verifying property legality is critical: title deed (property registration), permits, absence of disputes, cadastral compliance; a poorly informed agent will omit these essential checks.
• In some major cities, a high proportion of irregular constructions increases the need for local expertise; ignorance of rules exposes one to fines, financing refusal, or even demolition.

Concrete examples / cases:

• Purchase of a house in Fortaleza built without permits: the city may require costly regularization or order demolition; a competent agent would have checked at the Real Estate Registry Office and with local urban planning.
• Failure to verify ongoing disputes on the property (lawsuits, usufruct, condominium debts), leading to blocked signing at the notary or loan refusal.

Impact on the transaction:

Delays, unexpected additional costs, inability to register the sale, nullity, or post-purchase litigation.

Unreliable track record in financial commitments

Why it’s problematic:

• Agents or agencies with deceptive commercial practices (fake exclusives, outdated listings kept to simulate activity) show an internal culture of risk-taking and non-compliance, often correlated with lax fund and commitment management.
• Requesting or accepting funds outside formal procedures (official escrow, dedicated accounts) is a red flag on financial reliability and fiduciary duty compliance.

Concrete examples / cases:

• Agency demanding a deposit transfer before any signing and outside escrow, threatening to “move to the next”: characteristic of a high-risk scheme for the buyer.
• Agency multiplying deceptive listings (already sold properties left online, unfounded “exclusivity”), revealing systemic shortcomings that may extend to fee and deposit management.

Impact on the transaction:

Risk of deposit misappropriation, disputes over fund restitution, tarnished reputation complicating resale or rental, and time loss renegotiating financial terms.

Summary table of red flags and their effects

Red Flag	Concrete Indicators	Why It’s Problematic	Possible Effects
Lack of transparency	Listings without charges, abusive “exclusive,” outdated info	Biased decisions, hidden costs	Additional costs, delays, disputes
Pressure to sign	Ultimatums, urgent deposits to suspicious accounts	Hasty decision, loss of leverage	Money loss, suboptimal choice
Insufficient knowledge	No verification of registration/permits/disputes	Frequent non-compliance in Brazil	Fines, demolition, loan refusal
Questionable financial history	Deposits outside escrow, deceptive listings	Probable fiduciary breaches	Misappropriation, litigation

Best practices to protect yourself in the Brazilian context

• Demand complete documentation before any offer: updated property registration, negative certificates (disputes/debts), permits and urban compliance.
• Refuse any deposit outside notarial escrow or recognized trust account; prohibit urgent transfers “to reserve.”
• Check the agency’s history and reputation: listing consistency, fee schedule clarity, absence of recurring deceptive practices.
• Rely on a local specialized lawyer for legal audit and coordination with the Real Estate Registry Office.
• Avoid aggressive solicitation and agents hiding their identity or affiliation; prefer identified and traceable contacts.

The combination of a market where construction irregularities are frequent, potentially deceptive commercial practices, and requests for deposits outside secure frameworks makes rigorous verification of agents and properties essential before any commitment in Brazil.

The importance of the power of attorney contract in Brazil

The real estate power of attorney contract in Brazil is an essential contractual instrument to frame the representation between the real estate agent and the client, falling within the framework of the Brazilian Civil Code and real estate rules that require written formalization and adherence to applicable federal, state, and municipal laws. In practice, it serves as a basis to define the scope of the agent’s powers, compensation (commission), mutual obligations, and execution conditions, which secures the validity of brokerage acts and subsequent steps (authentication, registration), essential in Brazilian real estate matters.

Legal requirements making the power of attorney indispensable

• The Civil Code (Law 10.406/2002) governs contracts and representation, requiring formalization of agent-principal relationships and specification of conferred powers for real estate operations.
• Transactions must respect a network of federal, state, and municipal norms and rely on notarized acts and proper registrations at the Registry Office, necessitating a clearly formulated and enforceable power of attorney to avoid irregularities and disputes.
• Real estate legal security depends on the publicity and accuracy of information in the registries, making complete, consistent, and up-to-date contractual documentation necessary to produce effects against third parties.

Potential legal consequences for non-compliance

• Risk of certain acts or clauses being ineffective due to lack of required formalities (authentication/registration), with inability to enforce the contract against third parties and exposure to disputes or cancellations.
• Possible contractual and tort liability of the agent or principal if powers, limits, and obligations are not clearly established or exceeded, including commission disputes and damages related to irregular representation.
• Documentary non-compliance potentially blocking the transaction or access to the land registry, especially when property description or essential clauses do not meet registry requirements.

How a well-drafted power of attorney protects the parties

• Delimitation of powers: precise identification of authorized acts (marketing, negotiation, signing of purchase agreement, receipt of deposits), duration, and possible exclusivity, avoiding overreach and conflicts of competing representations.
• Compliance clauses: reminder of obligations to go through the competent Registry Office, provide required documents, and align property and party descriptions with the land registry to ensure enforceability and legal security.
• Economic protection: clear determination of commission, due date (e.g., at signing of purchase agreement or deed), payment terms, and penalties for non-performance or wrongful termination.
• Risk management: principal’s declarations and warranties on property regularity and capacity to alienate/lease, with obligation for document updates (certificates, CPF, updated land registry) to avoid nullities and litigation.

Table — Key clauses to include and benefits

Essential Clause	Purpose	Legal Benefit
Identification of parties and powers	Precisely define representation and its limits	Reduces risks of overreach and act nullity
Property description matching registry	Harmonize contract and land registry	Ensures enforceability and avoids registration refusal
Commission rules	Rate, due date, exclusivity	Secures compensation and prevents commission disputes
Registry Office/registration formalities	Notarization, required registration	Gives full effectiveness and publicity to the operation
Guarantees and documents	Certificates, CPF, registry update	Prevents blockages and liabilities for irregularities

Indicator of professionalism and reliability

• A structured, compliant power of attorney aligned with registration practices demonstrates mastery of local requirements (Registry Office, registries, multi-level norms), a sign of the agency’s diligence and regulatory compliance.
• The agency’s ability to anticipate enforceability clauses and documentary consistency with the land registry shows enhanced risk control, increasing client trust and the likelihood of a smooth, executable transaction.

==> A real estate power of attorney contract, properly drafted and executed according to Brazilian formalities, is both a condition for legal security and a tangible marker of professionalism, protecting rights, setting obligations and commission, while ensuring the effectiveness and enforceability of real estate operations.