REAL ESTATE | BUYING PROPERTY IN PORTUGAL Buying property


in Portugal S


It is the intention of this article to provide any potential purchaser with a very broad view of the conveyance process in Portugal. If you are seeking to purchase a property in Portugal, it is very strongly recommended that you engage the services of a Lawyer in Portugal. If you do not have a lawyer please contact the Portuguese Chamber of Commerce (www. portuguese-chamber.org.uk) who can provide you with some recommended companies.


Te process of transferring of a property from one legal owner to another legal owner in Portugal is more complex than in ‘common law’ countries, such as the UK, because of the many steps involved. Purchasers should not sign any documentation about a property until they have inspected it and preferably had a professional valuation, as well as obtaining independent legal advice from a lawyer.


In broad terms the lawyer will, on behalf of the purchaser, undertake the following steps:


1


Negotiate the terms of the promissory contract. Tis is a legally binding


agreement signed by both the vendor and the purchaser and basically stipulates the sale price of the property, the deposit to be paid – usually 10% of the total sale price - and the date for completion. Failure to comply with


55 | Summer 2011 | www.portugal-life.net


any of the conditions in the contract causes a breach and generally results in the purchaser losing his deposit or the vendor having to pay back double the amount of the deposit received from the purchaser. Te promissory contract is oſten signed by the lawyer under a Power of Atorney.


2 3


4


Exchange promissory contracts and pay the required deposit.


Obtain searches from the local Land Registry Department and Tax


Department to ensure that the purchaser will have good and clean title to the property, following completion.


Arrange to pay the notarial and land registration fees together with the


property purchase tax (IMT) shortly prior to completion at a tax office. Te property purchase tax is charged on a sliding scale based on the value of the property.


seek to complete the transaction. Te transfer of property in Portugal must be made by a notarial deed known as the‘ Escritura’ (Deed of Transfer) before a Notary Public. Te Notary Public will not allow the ‘Escritura’ to be signed unless all the necessary legal requirements are satisfied and the required documentation


5


Once these maters have been addressed the lawyer would then


imon Perks has held a senior position with Banco Santander Tota, London branch, for over 20 years and was responsible for building the banks’ Portuguese Mortgage


portolio. As such, he has extensive knowledge of the Portuguese property market, particularly in the Algarve and has presented at many seminars and conferences and writen a number of articles on the Portuguese property market. He has recently leſt the bank to set up his own business dealing in all aspect of property finance solutions for Portugal. Simon is also the Vice Chairman of the Portuguese Chamber of Commerce in London.


in order. Te ‘Escritura’ is writen in the Notary’s records and the purchaser may obtain (on paying the appropriate fee) as many legalised copies as are required. Te equivalent of ‘English deeds’ and original documents only exist in Portugal in the form of Notarial records. Tese are kept in the Notarial office concerned.


registry department so as to secure their interest.


6


Simon Perks - Perks Property Finance Solutions Limited + 44 (0)7389 0567 + 44 (0)7780 501548 email: simon@perks-pfs.com


Arrange to register the purchaser of the property at the appropriate land


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