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According to Valdecy Gusmão of the Recife (Pernambuco, North East Brazil) Official Property Registry Office, a significant proportion of real estate has not been registered correctly in the metropolitan area – with regions such as Tamareira, Casa Amarela, Casa Forte and Poço only having between 5 and 10 percent of properties listed.

Speaking to the Folha de Pernambuco newspaper, Gusmão stated: “in my designated area alone – with between 100,000 to 200,000 properties, we have almost 12,000 enrolled.  Unfortunately, Brazilians rarely register their properties – it is often done at the last minute only when necessary – such as to access credit lines to refurbish a home or on the behalf of the buyer who aims to purchase the home using finance.”  Gusmão also believed that a there are several parts of Pernambuco state where housing is occupied informally – a situation which he believes “has become irreversible due to the length of occupation of some residents which has given them further rights.”

The newspaper spoke to judge Sergio Paulo Ribeiro of the Pernambuco Court of Extra Judicial Service stated: “there are municipalities across Pernambuco state where it can be seen at the notary´s office that only 5 thousand housing units are registered, but the region has a total stock of 40,000 properties.”

The causes of the situation are being pointed to a lack of adequate legal monitoring for the majority of the state´s housing stock; badly administered notary offices (particularly in the interior municipalities) and bureaucratic processes that make property registration a cumbersome process.  The situation is said to remains as serious in many regions of Brazil – bringing doubt as to how the organic evolution of the market will be monitored effectively.