About to Moving In. Maybe Not?

We are about to move in. Tomorrow. And today is the day where we do the official walk-through. There is a person that has been hired to do a list of the condition (or state) of all things, so that when we are moving out, we can check against that list if everything was left in order. Yesterday night, the lawyers came back to us. It took them a month to find out about some elements are missing to complete a proper lease registration. In fact, there are three issues preventing for the proper completing of all registration procedures, the two first being simple: officially the house is registered as a co-property of the owner and his wife, although she is deceased; and a paper is missing to show that all taxes have been cleared by the owner.  However the last but not least, the house is not found in the cadaster registration or Registro de Imoveis. Well, think about this. In other words, the house is not registered. The house does not exist legally... This is a real problem of land or property rights. Oops! Big oopsy.
I am not sure why it took one month for the notaries and lawyers to find this out. And why we are told the day prior to our move.  We are not sure also on how this could be corrected - administrative procedures here are complicated, and to say the least, lengthy. The lack of proper registration might be due to various reasons. The "correction" of the elements pointed out by the lawyers would allow us the register the lease, ensuring a proper protecting in case of legal need - for example if the owner sells. Not completing the registration procedures could mean that a new owner could quick us out, among other things.
Should we take the risks? we asked. We took a moment to reflect, and asked around for some opinions. Is the risk big, if there are no registration of a building? Maybe not so much - who would buy a building without the proper registration papers anyway. And we (more specifically me) really wanted to get out of our rental place. In the end, we touched wood, and chose to take the assumption that all would be fine, that the owner was a trustworthy guy. He did appear to be this way. Knock knock.
So today, I went anyway to do the walk-thought. The owner and his girl-friend were there. The house was standing empty, waiting impatiently to have us moving in. It was beautifully ready for us.
I was very nervous. I had to break the news, explain at best what the lawyers found, detail what was missing to the owner. Of course the lawyers would fill the blanks. Yet it felt like I was the jolly messenger coming to kill the party.
So despite my clear statements to the owner about our intention to trust that he would do all the necessary paperwork, despite being there for the transfer of the keys, the owner did not understand me at all.  His face went white. He jaw dropped open. Then tightened. He just understood the property issue - he saw the wall of bureaucracy in front of him. He probably was angry to have made all this effort transferring his things and moving. I had to explain at least four times.  His girlfriend, who understood well english, could translate. Yes, we would do this in good faith. We would trust that he does all the necessary paperwork to register the lease, in order to enable him - and us - with a better and more complete legal protection. It was probably so unlikely that he could understand my english.
We then did the walk-through. Here are some photos.