The Buying Process

by admin on November 18, 2021

Any individual purchasing a property in Portugal should purchase should instruct an accredited attorney to ensure your best interests are being represented. As the documentation and regulations do differ from other countries.

Using an agent 

When using a real estate agency in Portugal the company should be registered and display their AMI license in their office and on all advertising.

Viewings

Once you have selected the properties you wish to view, the real estate agency will organise viewings for you. Once you have chosen a property you want to buy, it is necessary to obtain a lawyer to guide you through the legal process.

Offer

When you have found the property, you wish to purchase and are ready to make an offer, it is normal procedure for the buyer to make an offer in writing to the estate agent who showed him the property. The agent will negotiate and agree on the price with the vendor. It is important that all parties understand what is included and what is not included in the purchase. The buyer can be asked to pay a reservation deposit with their own attorney as proof of intention to move forward with the sale.

Preparation of the Contract-Promise of Purchase and Sale (CPCV)

Within two weeks of signing the reservation contract and all the paperwork has been checked your lawyer will prepare promissory agreement (Contrato Promessa de Compra e Vende) a legally binding contract between the buyer and vendor. The contract states who the vendor and seller are, the asking agreed price and terms of payment, description of the property, an inventory of what furniture etc is included.

Under Portuguese legislation, once this contract is signed, the buyer will lose their deposit if they are in breach the contract. If the seller breaches the contract, he will be required to pay double the deposit to the seller.

New Builds

Normally when dealing with a developer the deposit required is 10,000 which is paid into the developers account and non-refundable.

IMT (Property Transfer Tax)

Once the Promessa has been signed the property tax (Imposto Municipal sobre  transmissões Onerosas de imóveis -IMT) is paid by the buyer when there is a transfer of ownership of real estate in Portugal. If you are obtaining a Mortgage a legal charge will be provisionally registered at the local land registry office. Once these legalities have taken place the purchase can proceed to the completion stage.

Completion (Deed)

Upon completion, the public deed will be signed in front of a Portuguese notary who will in turn check all the documents in the purchase. The notary office will issue certified copies of the corresponding entry, and this serves as official proof that the transaction has been made lawful and at this stage the balance of the agreed price is paid in full. Within the public deed and all the transaction completed, the buyer’s attorney will then proceed to register the new owner of the property into the land registry (Registro Predial) and will give a copy of the registration to the new owner.