The Buying Process
When it comes to buying property we know that it is a big decision. We also know that knowledge is power and so with that in mind we have put together all the parts of the process that you will go through during your journey to buying property with us.
Get in touch
All adventures start with the first step. The first step here is to get in touch with us. Following on from your enquiry, email or call our Property Advisor will get in touch with you. They will spend time speaking and corresponding with you, they will listen to you and establish exactly what you want from your property. They will explain how the process works, the buying costs, running costs and the advantages or disadvantages of one region versus another. They can put you in touch with currency exchange specialists so that you can get the best rate on the market and prepare your finances ahead of time to ensure you maximise your budget when moving it into euros. Lawyers and tax specialists can also be contacted and introduced. They will answer all of your questions and really get to know you and your requirements. Together you will create a property wish list which is passed over to our team on the ground, so that they can ensure we have the best options available for you - things are starting to get exciting! They will arrange a couple of days for you to meet with our Property Consultants on your next trip to Portugal. Then you can relax knowing we are working behind the scenes to prepare a portfolio of properties perfect for you.
During your initial meeting with us we will show you a fantastic range of property options. We ensure you only see the best options which meet your needs - we will not waste your time showing you properties which do not match your requirements. We will also take you to meet the lawyers, currency exchange team and tax specialists that our Property Advisor introduced you to before your trip over so that you can ask any further questions and put a face to the name. There is no pressure, but we believe that on this trip we will find you the perfect property. Once this has happened and you are ready to make an offer we will put this to the vendor and negotiate to ensure you get a deal that you are happy with and a price which also meets with the satisfaction of the vendor.
Reserving a property
Once we have negotiated the right price for you and the vendor we will ask you to place a €6,000 reservation fee into your lawyers client account. This is a non binding, 100% refundable fee, but it shows your intent to purchase the property to the vendor. Once this has been paid the property is taken off the market so no further viewings or offers can be made - there is no gazumping in Portugal - and your lawyer can then undertake due diligence on the property. The lawyers will provide you with a report on what they find. If, at this stage you are not happy or decide the property is not right for you then the reservation fee is refunded and we start to look for a different option. However if you are happy to proceed we then move onto the Promissory Contract of Sale and Purchase (Contrato Promessa de Compra e Venda).
Usually within 14 days of signing the reservation both buyer and vendor enter into a promissory agreement clearly identifying the following:
- The agreed price
- Exactly who is the buyer and vendor
- The date of exchange and of the completion of contract
- What is included in the purchase, e.g. furniture, golf membership, etc, in the form of an inventory list
- Payment Terms
- Any other terms and conditions
This is legally binding for both parties. This contract will establish in detail all procedures by which the transaction will be effected and the conditions of sale, such as stage payments and the maximum term allowed for completion. At this stage it is normal procedure for the buyer to pay 30% (less reservation fee) to the vendor. If at this stage you decide to pull out of the deal you will loose all monies paid. This contract can be signed personally by the parties or by lawyers acting on a power of attorney.
Upon completion, the Public Deed (Escritura) will be signed in front of a Portuguese Notary who will check all the documents and ensure that the purchaser has paid the Purchase Tax (IMT). The Notary office will issue certified copies of the corresponding entry and this serves as official proof the transaction has been made lawfully. At this stage the balance of the agreed purchase price is paid in full.
With the Public Deed and all the transaction completed, the buyer’s lawyer will then proceed to register the new owner of the property into the Land Registry (Registo Predial) and will give copy of registration to the new owner. The keys are finally handed over and you are now the owners of your dream property in the sun.