How to verify a property developer in São Paulo before signing a contract

Verifying the corporate entity at JUCESP

Marketing brochures and sales pitch decks present the commercial brand of a project, which often differs from the legal entity selling the property. Before making any commitments, request the legal name (*razão social*) and federal tax identification number (*CNPJ*) of the developer and the Special Purpose Entity (*Sociedade de Propósito Específico* or SPE) created for the project.

Company registrations in the State of São Paulo are recorded at the Junta Comercial do Estado de São Paulo (JUCESP). You can access JUCESP online via its digital platform (JUCESP Online) to run a search on the corporate CNPJ. Request a *Certidão Breve Relato* or a *Certidão Inteiro Teor*. These documents disclose:

• The current equity structure and legal representatives.
• Paid-in capital and official corporate address.
• Previous corporate restructurings, bankruptcy filings, or legal dissolutions.

If the developer operates through an SPE, ensure that the parent company acts as a legal guarantor or joint debtor (*devedor solidário*) in the purchase contract.

Confirming land ownership and title status

In Brazil, property ownership is established exclusively through registration at the local Real Estate Registry Office (*Cartório de Registro de Imóveis*). São Paulo is divided into 18 distinct registry jurisdictions. The location of the plot determines which specific cartório holds the land record.

To confirm land control, order a fresh *Certidão de Matrícula Atualizada com Ônus e Ações* directly from the relevant cartório or via the national electronic portal (*Registradores* / ONR). Do not rely on copies supplied by the sales agent. The matrícula reveals:

• Chain of Ownership: The developer or SPE must be registered as the current legal owner (*proprietário*). If the land is held under a swap agreement (*permuta*), the land swap contract must be formally annotated (*averbado*) on the matrícula.
• **Encumbrances (*Ônus*):** Look for registered mortgages (*hipotecas*), tax liens (*penhoras*), or judicial seizures.
• **Litigation (*Ações Real-Inscritas*):** The certificate lists pending lawsuits directly tied to the land title.

Validating planning permission and the Registro de Incorporação

Off-plan property marketing in Brazil is governed by Federal Law No. 4,591/1964. Under Article 32 of this statute, a developer is legally prohibited from advertising or selling units prior to filing the *Registro de Incorporação* (RI) on the land's matrícula at the Cartório de Registro de Imóveis.

The RI confirms that the land registry has reviewed and approved a legal dossier containing:

1. **Building Permit (*Alvará de Aprovação e Execução de Edificação*):** Issued by the Secretaria Municipal de Urbanismo e Licenciamento (SEL) of the Prefeitura de São Paulo. This document confirms municipal approval of the architectural plans, land-use zoning (*Zoneamento*), and density parameters. 2. Memorial de Incorporação: The legal description of the project, detailing private unit fractions (*fração ideal*), shared spaces, and material specifications. 3. **Segregated Estate (*Patrimônio de Afetação*):** An optional but standard legal regime under Law No. 10,931/2004 that ring-fences the project's assets and finances from the developer's general corporate liabilities.

Verify that the RI number and the identifying Cartório de Registro de Imóveis are printed on all marketing brochures, reservation forms, and contract drafts, as required by law. Request a *Certidão de Dados Cadastrais do Imóvel* from the Prefeitura de São Paulo to cross-reference municipal tax numbers (*SQL / IPTU*).

Assessing developer delivery history and past projects

Past performance can be independently verified across judicial, municipal, and consumer protection databases:

• Judicial Litigation Checks: Search the developer's name and CNPJ (as well as those of the SPE and corporate directors) on the portal of the Tribunal de Justiça do Estado de São Paulo (TJSP). Review civil distribution certificates (*Certidão de Distribuição Cível*) to check for active suits involving contract terminations, late delivery claims, or construction defect litigation. Search federal court records via the Tribunal Regional Federal da 3ª Região (TRF-3) for tax disputes.
• Labor and Tax Certificates: Confirm financial solvency by requesting a *Certidão Negativa de Débitos Trabalhistas* (CNDT) from the Justiça do Trabalho and a joint federal tax clearance certificate (*Certidão Conjunta de Débitos Relativos a Tributos Federais e à Dívida Ativa da União*) from the Receita Federal.
• **Occupancy Record (*Habite-se*):** On completed developments, verify that the municipality issued the *Auto de Conclusão de Obra* (*Habite-se*). Cross-reference past developments on the São Paulo municipal portal (*De Olho na Obra*) to confirm that completed projects received their final occupancy certificates without structural or zoning infractions.

Red flags requiring immediate pause

Abort or pause negotiations if any of the following arise:

1. Absence of RI Number: Marketing or selling off-plan units without a registered RI on the land matrícula is a statutory infraction under Law No. 4,591/1964. 2. Unregistered Land Ownership: The seller on the contract does not match the owner registered on the latest *Certidão de Matrícula*. 3. Unfunded Segregated Estate: The project lacks a *Patrimônio de Afetação* notation on the matrícula, leaving buyer funds exposed to general corporate creditors if the developer faces insolvency. 4. Outstanding Tax and Judicial Certificates: The developer or SPE returns positive certificates (*Certidões Positivas com Efeito de Negativa* absent) for tax debts, labor liabilities, or foreclosure actions. 5. Demands for Off-Contract Payments: Requests to pay deposit monies or reservation fees into bank accounts belonging to third parties or untraceable individuals rather than the official SPE account.

*Note: Real estate transactions in Brazil are subject to regulatory updates; independent legal verification of title documents and certificates should be conducted prior to contract execution.*