Property purchase and legal procedures in Portugal

Purchasing a property in Portugal is our days a very secure procedure, nevertheless it is highly recommended that qualified legal advice be always sought.
The following basic information is the step-by-step explanation to help understand the legal procedures once you have decided the purchase of your home in Portugal.

One of the most important points is certainly the choice of your Portuguese real estate broker.

All the real estate agencies in Portugal must have a valid license which has to be renewed every 3 years. The license has to be visible in the office of the real estate agency, as well as the document proving the appropriate insurance cover that may be claimed if there is a dispute.
In your own interest, please always check the license number and ask for the insurance cover receipt.
So now that you have found the right Portuguese real estate broker you can enjoy your inspection visit and finally your overseas property dream will become true.

What to do now?

You negotiate the property price.
You negotiate the general conditions of the deal.

Extras which will be included or remain in the property
Eventual refurbishment, paintings or repairs of the property
Down payment at the signature of the promissory contract (usually between 10-20%)
Date of the deed, which means the timescale between the signature of the promissory contract and the final signature and payment in front of the notary
You choose your legal adviser (lawyer or solicitor)

From this moment on you have a legal representative in Portugal who will or should do on your behalf the following:

Applying for a Portuguese fiscal number
Applying for all the legal documents referring to the property of your choice
Prior to the act of the promissory contract he will check if the necessary documents are correct and if there are any type of financial problems on the property to ensure that the contract can be done according to the facts provided including the extras and other special conditions which have been agreed between buyer and seller. The promissory contract is legally binding on both sides and the law requires the seller to repay twice the deposit should he withdraw from the sale. Likewise, if the buyer fails to complete he will lose the total of his down payment.
After the signature of the promissory contract your legal representative will schedule the date for the final deed according to the wishes of all the involved parts

Prior to the final deed your lawyer will have to pay the purchase tax (IMI) on your behalf

Finally your property in Portugal becomes reality – The final deed at the notary

This act is recorded in the official books and it is at this moment that payment is normally completed to the seller. After the act is recorded the notary will issue an official photocopy of the entry which is the proof to the buyer that the act has officially taken place. Our days and with the help of the modern technologies all the registrations are done online at the notary office and are immediately available for all official purposes.
Depending on the negotiations with your legal representative, he can also apply or change on your behalf the water, electricity and phone line

Now it is time to enjoy your property in Portugal!

Thank you for your support!

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