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Buying process
Buying property in Portugal
When you buy a Second Home in Portugal you will not only buy the ownership of the second home in Portugal but you will also take on any debts secured against the property in Portugal, like a mortgage and municipal rates. Before you buy your second home in Portugal you will have to make sure that there are no debts secured against the property. The local Land Registry is able to present you with a certificate so you can buy property without debts.
Reservation contract
With this contract you can express your interest in the second home in Portugal. A small deposit will enable you to check a few things without running the risk of someone else buying the property in Portugal. It is common practice to include a date of expiry in the contract.
With this contract you can express your interest in the second home in Portugal. A small deposit will enable you to check a few things without running the risk of someone else buying the property in Portugal. It is common practice to include a date of expiry in the contract.
Initial promissory contract (contrato promessa de compra e venda)
This is a legally binding contract which binds both parties to the sale of the property in Portugal. This contract includes all information about the sale. You are advised to also include some conditions subsequent in the contract so that any financial consequences will be limited to a minimum should your financial plan fall through. The initial promissory contract is drafted by a notary public, but he or she cannot be held accountable for the contents. It is customary to pay a deposit of 10% to 20% of the purchase price when signing the initial promissory contract.
This is a legally binding contract which binds both parties to the sale of the property in Portugal. This contract includes all information about the sale. You are advised to also include some conditions subsequent in the contract so that any financial consequences will be limited to a minimum should your financial plan fall through. The initial promissory contract is drafted by a notary public, but he or she cannot be held accountable for the contents. It is customary to pay a deposit of 10% to 20% of the purchase price when signing the initial promissory contract.
Conveyance
The actual exchange of title will take place one to two months after signing the initial promissory contract. The signing of the final contract and transfer of ownership documents, the escritura, always takes place in the office of a notary public and actually is the final step of the buying process in Portugal. You will have to register your property in Portugal with the Land Registry and the tax office as soon as possible.
The actual exchange of title will take place one to two months after signing the initial promissory contract. The signing of the final contract and transfer of ownership documents, the escritura, always takes place in the office of a notary public and actually is the final step of the buying process in Portugal. You will have to register your property in Portugal with the Land Registry and the tax office as soon as possible.
