The process of buying a property consists of three stages: reservation, signing a contract of intent (preliminary contract of sale) and registration of a sale transaction.
Reservation. This stage begins when the buyer has already selected one or more real estate properties and is ready to start trading at the price and terms of the purchase. At this time, a “purchase proposal” is drawn up in writing, which states the desired purchase price, the terms of signing the preliminary and basic contract of sale, the amount for non-refundable collateral under the preliminary contract, as well as a request for reservation of the property for the term of the final price agreement and terms of purchase (usually 14 days). To confirm the seriousness of intentions, the buyer, when signing the “offer”, leaves a pledge in the deposit, usually from 500 to 5000 euros, depending on the value of the property that is stored in the agency and serves as a guarantee for the seller. This amount is always refunded to the buyer when making a pledge under a preliminary agreement, in the event that the parties reach an agreement, or at any time at the request of the buyer if the parties have not agreed on the terms of the purchase. Within 14 days from the date of signing the “offer” the seller agrees to withdraw his property from sale to other buyers.
Agreement of Intent. When the buyer and the seller have come to an agreement on the price and terms of the purchase, the next step is the signing of the contract of intent / preliminary contract of sale. After a thorough check of documents for the absence of debts and encumbrances, at the time of signing the contract, the text of the contract is prepared with the description of the amount of non-refundable collateral (usually 10-20% of the cost), the method of payment, the maximum term for the sale and purchase transaction, For the parties the conditions about which the parties have agreed in the bargaining process. The contract is signed by the parties in the presence of each other and does not need to be notarized. In case of failure to fulfill the deadline for processing the transaction through the fault of the buyer, the amount of the pledge shall not be refunded, in the event of failure to perform due to the fault of the seller, the buyer has the right to demand the return of the amount of the pledge in a double amount, unless otherwise specified in the text of the preliminary contract. In the case of attracting bank funds (mortgages) for the purchase of real estate, it is necessary to pre-register (REGISTO PROVISÓRIO) the processes of transfer of ownership and mortgage lending to the local body of cadastral registration of real estate (CONSERVATÓRIA DO REGISTO PREDIAL).
Execution of the transaction of purchase and sale. The buyer must notify the agency of the desired date of the transaction at least 5 working days, the agency in turn agrees the date with the seller and appoints the transaction from the notary, and also passes to him all the documentation necessary for the transaction for the last check. Before the transaction, it is necessary to pay the transfer tax and stamp duty (see Taxes section), and also prepare a bank check for the remaining amount under the contract for transfer to the buyer from the moment of signing the purchase contract. If one of the parties or both parties does not know the Portuguese language on the transaction, the presence of an interpreter is obligatory, which undertakes to transfer the contents of the contract reliably before signing it. In the event that the seller has a valid mortgage on the transaction, a representative of the bank is necessarily present and the seller in the presence of the buyer completely repays his mortgage debt. Absence of other debts and encumbrances the notary last time checks online immediately at the time of the transaction, which guarantees the buyer full “cleanliness” of the property. After signing the contract of sale, the notary registers the right of ownership in the registration cadastral body within 15 days.
The signing of the contract of sale (ESCRITURA PüBLICA) at the Notary Office will take place only if all necessary documents are available for this:
– Receipts for payment of IMT and IMI taxes;
– Documents identifying the personalities of both parties;
– Documents related to the property:
I. CERTIDÃO DE TEOR – a certificate certifying the real estate property and its location, as well as containing information about all actions performed in relation to the property. Asked at the local body that performs cadastral registration of real estate properies (Conservatória do Registo Predial)
II. CADERNETA PREDIAL – a document certifying the registration of a property in a fiscal body. Contains information about the patrimonial value of the property, the description and status, the name of the owner and his fiscal number. A kind of passport of the property. Is issued by the local branch of the fiscal body.
III. CERTIFICADO ENERGÊTICO (energy certificate) – mandatory in the case of a purchase-sale document, issued on the basis of energy audit and reflecting the energy efficiency of the property (AE)
IV. FICHA TÉCNICA DE HABITAÇÃO – Technical data sheet of the facility containing the description, technical characteristics and plans. This is only for buildings built after March 30, 2004 (or the License for the use of which is requested after the designated date).
V. LICENÇA DE UTILIZAÇÃO – document on the purpose of the property (for living, for construction, for commercial activities). It is issued by the local municipality (Câmara Municipal do Concelho).
VI. In the event that mortgage lending is involved in the process, a copy of the preliminary registration (REGISTO PROVISÓRIO) in the Real Estate Cadastre for the transfer of ownership of property and mortgages to the bank is also provided.
Preparation and verification of all documents related to the property, is entirely the concern of specialists of Portugal Realty & Investment.
The final stage of the purchase process is the registration of the transfer of ownership of property in the body involved in cadastral accounting Conservatória do Registo Predial). In the case of the existence of preliminary registers (as, for example, in a mortgage), they change from the preliminary status to the final ones.