I. Introduction
Under Brazilian law, questions relating to property are governed by the law of the place where the property is situated (lex situs). Thus, it is the law of the place which has competence to classify property as movable or immovable, and to determine whether it may be the subject of a right in rem. Hence, real property situated in Brazil is subject to Law No. 3.071, of January 1, 1916 (the "Brazilian Civil Code") to determine the rights and liabilities of neighbors, encumbrances relating to adjoining properties, grounds for expropriation of property by public authorities, the means of transfer, etc. Both possession and ownership are governed by lex situs.
The same principles govern rights in rem over the property of third parties (e.g. emphyteusis, easements, usufructs, use, habitation, income payments due on real property).
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