Buying a property is one of the biggest investments you will ever make. Before proceeding with the process, make sure you have done all the necessary research.
Make sure you use the services of a qualified Real Estate Agent (make sure he is licensed and has an AMI number).
The Pink Real Estate - Mediação Imobiliária, Lda team, with the license number AMI 7285, has been in the real estate business for 15 years and will keep you informed of all matters related to the purchase process, including all fees, taxes , bank mortgages and issues related to the mediation process.
Once you choose the property you want to buy, compare prices and your proposal has been verbally accepted, insist on having the documents updated to ensure that the seller is the registered owner and has all the licenses, be SURE that your lawyer checks all relevant documents.
Land Registry Certificate
This certificate has a complete description of the registered legal history of the property and will reflect any burden or charge, such as the mortgage. The certificate is obtained at any Land Registry Office or through the website www.predialonline.pt, and is issued with an expiration date.
This document identifies the tax status of the property, not only by the unique tax number, but also by the description of the property (size, areas, number of rooms, floors and history). In addition, it identifies the owner and his tax number.
This license is proof that the property has been approved by the respective City Council for the purpose being used, for example residential or commercial use.
Mandatory document for the sale of all properties, except in some special situations provided for by law.
Housing Technical Sheet
Document containing all information related to the construction of the property. It is mandatory for all properties whose License for Use dates from 2004.
Certificate issued by the respective City Council attesting the completion of the sanitation equipment after the subdivision. It is mandatory in the first property transfer, after the construction of a property in a subdivision.
If the chosen property has all the necessary documentation updated, it is possible to proceed immediately with the immediate purchase, scheduling the deed for the earliest available date.
On the other hand, if the chosen property does not have all its documentation in compliance, it is possible, in certain situations, to proceed with a preliminary contract (Promissory Purchase and Sale Agreement), where all the terms of the sale are established, including the deadline to sign the deed.
At this time, an amount of 10% of the property value is normally paid as a down payment. If you give up the purchase you lose the 10% deposit. If the owner gives up, he has to pay twice the amount of the down payment received. Make sure that any verbal agreement made with the seller during negotiations is written in the Promissory Purchase and Sale contract when you sign it.
In Portugal, real estate is normally sold through a public deed of purchase and sale, but it may also be through a certified private document.
In an apartment or development, there are two other aspects to mention, namely the Horizontal Property and the condominium system. Horizontal Property is a means of creating an autonomous fraction within a property that is part of a larger building, with common ownership of land, stairs, gardens, etc.
The Portuguese law applicable in these areas is quite complete.
When all the conditions established in the Purchase and Sale Agreement have been fulfilled, the Deed is executed and signed by both parties in a public notary. This is affectively the last contract. It is usually at this point that the last payment of the price is made. This occurs after the notary witnesses the act and has determined and verified all the legal aspects of the entire transaction (identity of the parties, situation of the property, verification of the payment of the price, and the settlement of the taxes due, namely IMT and Stamp Duty) , and that all parties are in compliance with all terms and conditions of the transaction. The original Deed is in the possession of the notary and a registered copy is kept at the Public Registry offices. The buyer obtains a certified copy of the deed, and if it is lost, it is always possible to obtain another certified copy.
Make sure that you get, in advance, an estimate of all fees and costs involved in buying the property, including lawyers, notary, taxes due for the purchase of the property, etc.
Update of documents after writing:
After the signing of the deed, it has to be submitted for registration, in order to produce its effects before third parties. This act has a cost. Currently, it can be submitted to any Land Registry Office, as well as submitted to the Property Finance Service, in order to update the new ownership.