First and foremost, it is important that we use what some might call the old fashioned route – the telephone!
We like to SPEAK to our clients, rather than just rely on email, so please expect to be asked for your telephone number or do call us in the first instance.
If you’re a serious buyer and have a genuine interest in viewing some properties, we need to talk to you so that we can properly gauge exactly what you’re looking for and when you’d like to view.
The Buying Process
There are three stages to buying a property in Portugal:
Once you’ve found your dream property and are ready to offer on it, usually the buyer (you) makes an offer via the agent who first showed them the property. Then the agent will negotiate a deal of benefit to you and one which satisfies the vendor.
Make sure you are clear what is included in the purchase and what is not. Then, typically, the buyer (you) puts a reservation deposit down of 6000 Euros with their lawyer, which proves the intention to complete and the property is taken off the market by the Vendor.
- Promissory Contract of Sale & Purchase (Contrato Promessa de Compra e Venda)
Within about two weeks of signing your “reservation form”, you enter into an agreement with the vendor, clearing setting out the following:
- The price which you’ve agreed
- The name of the buyer and the vendor
- The date of exchange and completion
- An inventory of exactly what is included in the purchase
- Terms of payment
- Any other T&Cs
Most Portuguese transactions use this type of contract which is legally binding for both sides. It establishes all the procedures which govern the sale, including the maximum term for completion, stage payments etc. The deposit you pay when signing the promissory contract is usually 30% of the purchase price less the reservation deposit. The contract can be signed by a lawyer if they have been given power of attorney or by the purchaser and vendor themselves.
- Public Deed (Escritura)
Once you have completed on your property, the Public Deed (Escritura) is signed in front of a Notary who checks all the documents and makes sure the purchaser has paid the Purchase Tax (IMT). The Notary will then issue certified copies of this, which offers official proof that the transaction is legal. The balance of the purchase price is then paid in full at this point.
Once the Public Deed is completed, the buyer’s lawyer then registers the new buyer as the owner of the property with the Land Registry (Registo Predial) and gives a copy of this document to the new owner. Now it’s all yours!