The Buying Process in Portugal
Normally, after we help you spot the property that fits your prerequisites, you are to negotiate a realistic offer to us regarding the property. However, as your agent, we will proceed to negotiate an affordable deal that you and the vendor are contented. We ensure that both you and the vendor understand well the terms of the purchase (what is included in the purchase, and what is not) to prevent any complications in the process. You are then normally expected to make a Reservation deposit with your own lawyer as a proof of your intention to complete the purchase, the vendor then takes the property out of the market after your reservation.
Promissory Contract of Sale and Purchase (Contrato Promessa de Compra e Venda)
Generally, a few weeks after signing the “Reservation Form”, both the buyer (you) and the vendor go in for a promissory agreement pinpointing clearly the following:
- The agreed price
- Exactly who is the buyer and vendor
- The date of exchange and the completion of contract
- What is included in the purchase, e.g. furniture, golf membership, etc, in the form of an attached inventory list
- Payment Terms
- Any other terms and conditions
A promissory agreement legally recognized and widely used in Portugal. All parties involved in the country are bound to respect the terms. This agreement establish in detail all procedures by which the transaction will be effected, exactly who the buyers and vendors are, the conditions of sale, such as stage payments and the maximum term allowed for completion. A deposit (normally 30% of the total price agreed less the reservation deposit) must be paid during the signing of the promissory agreement by either the buyer or vendor in person or by theirs attorneys (if given with rights to do so).
Public Deed (Escritura)
The Public Deed signing is next in line after the promissory agreement. This document is signed in the presence of a Portuguese Notary who checks through the documents and ensures that the Purchase Tax (IMT) has been paid. The Notary office then (after the agreed purchase price has been fully.) hands over certified copies of the agreement to both parties which proofs legal ownership transfer.
The Buyer’s lawyer can then proceed to registering the buyer into the Land Registry (Registo Predial) as the new legal owner of the property.