Navigating the Purchase Waters: A Guide to Buying Property in Portugal

A Guide to Buying Property in Portugal

Embarking on a property purchase in Portugal? Unfamiliar waters require a sturdy vessel and a trusty crew. This guide serves as your compass, outlining the legal procedures involved in acquiring a Portuguese property. Seahaven is here to ensure a smooth and secure journey!

The Purchase Process

Reservation Deposit: Once you've found your dream property and your offer is accepted, a reservation deposit (typically €5,000) secures it for a set timeframe. This deposit is usually held by your lawyer until the promissory contract is signed. Unfurl the sails with caution: Failure to pay or adhere to the timeframe might result in the property returning to the market.

Engaging Your Lawyer: 

A qualified lawyer is your first mate. We can connect you with reputable bilingual lawyers to guide you through the process. 

Consider a Power of Attorney (Procuração Pública): This document empowers your lawyer to act on your behalf, saving you time and travel costs. While you can obtain one in your home country, the process is more time-consuming and expensive.

Your Lawyer's Role

Clear Title Verification: 

Your lawyer ensures the property is free of debt, restrictions, and (for land purchases) allows construction. They'll also verify that municipal plans align with the existing structure.

Vendor's Responsibilities: The seller must be current on all payments (mortgage, utilities, taxes) and guarantee vacant possession upon sale.

Financing Considerations: If needed, you can add a clause to the promissory contract stating it's subject to mortgage approval.

• Promissory Contract of Purchase and Sale (CPCV - Contrato de Promessa de Compra e Venda): Once terms are agreed upon and documents are in order, both parties sign the CPCV, outlining the agreed-upon purchase conditions. This contract can be legalized by a notary (buyer's choice). Deposit Time: The buyer typically pays a 10%-30% deposit to the seller at this stage. Portuguese law protects both parties: If the buyer defaults, they lose the deposit. If the seller defaults, they must return double the deposit amount.

Upon signing, your lawyer releases the deposit to the seller(s) or their lawyer. The contract will also specify a date (usually 3-12 weeks later) for the final deed signing (Escritura Pública).

• Final Deed (Escritura Pública): This final contract officially transfers ownership from seller(s) to buyer(s). Signed before a public or private notary, it ensures all documentation is correct before signatures. Payment Completion: Full payment is made to the seller at this stage. Transparency is Key: The contract is read aloud, and if needed, interpreted into the buyer's language.

Once the final deed is signed, the property is legally yours. However, it still needs to be registered with the Land Registry Office (Conservatoria do Registo Predial).

Let Seahaven Be Your Trusted Guide:

We can assist you throughout the entire purchase process, ensuring a smooth and successful journey towards your dream property in Portugal.

Important Note: 

This information is for general guidance only. We recommend seeking legal and tax advice before any property transaction, as laws can change.