Deciding on purchasing a property is certainly a very important step, and certain details must be taken good care of.
Always use an Agent duly licensed by the INCI. Don’t get involved with the “coffee bar” specialists, who can give you no guarantee of what they are doing. The licensed Agent can advise you, and help you through his experience and professional formation.
Once you have found the right property for you, you can always try to make an offer. The Agent will always try to get the best possible price. Though, some owners are flexible, others are not.
When you have reached an agreement on the price, you will have to appoint a Lawyer (“Advogado”) or Solicitor (“Solicitador”) to deal with the paperwork and organize the purchase process.
The normal procedures start with the signing of a Promissory Contract, paying a first deposit (the amount is to be agreed between parts, but is normally 10% to 20%), and establishing all the conditions of the deal (price, time for completion, etc). The promissory contract is a written compromise between the vendor and the buyer. In case the vendor withdraws from the contract, he can be demanded to pay back the deposit received, in double. If the buyer withdraws from the contract, he will loose the amount paid as deposit. On the day of signing the Final Contract (“Escritura”), at a Notary’s Office, the buyer will pay the balance of the sale to the vendor, and this one will hand over the keys of the property (if applicable). It is normal for the vendor to request a banker’s draft (“cheque visado”) for the balance payment.
Legal Costs related with the purchase:
- IMT (Ownership Transfer Tax) – this tax is to be paid before the celebration of the Final Contract, as the notary will not do the deeds if the tax has not been paid.
