Selling and buying property in Portugal

Buying Process 

​Legal Procedure

Purchasing real estate in Portugal involves a distinct procedure compared to acquiring property in your country of origin. The legal framework and regulations in Portugal vary, prompting us to offer you the subsequent guidance concerning the property acquisition process in Portugal, ensuring a risk-mitigated purchase.​

1. Reservation deposit
2. Enabling a lawyer
3. Promissory contract of purchase and sale
4. Public deed

Reservation

Upon discovering the property that aligns with your preferences and receiving acceptance of your offer, a pivotal step emerges – the reservation phase. During this stage, you will be requested to provide a reservation deposit, typically amounting to € 5,000 Euros. This deposit holds the significant role of reserving the property for a defined duration. The responsibility of safeguarding this deposit commonly rests with the lawyer overseeing the transaction, who will retain it until the signing of the "CPCV - Contrato de Promessa de Compra e Venda" (Promissory Contract). It's important to note that dynamics may vary when acquiring property from a developer. An essential cautionary note: the failure to fulfill the deposit requirement or adhere to the stipulated timeframe could potentially lead to the property being reintroduced to the market.

Lawyer

To proceed with the acquisition, enlisting the services of a qualified attorney is essential. Should you require recommendations, we'd be delighted to furnish you with a list of respected bilingual lawyers.

A "Procuração Pública" (Power of Attorney) is highly recommended to grant to your legal representative, effectively saving you time and travel expenses. With this document, your attorney can act on your behalf when the power of attorney is in place. While crafting this official document in your home country is plausible, it's a more time-consuming and expensive process due to the necessary official translation, notarial seal, and apostille endorsement.

Before the signing of the "CPCV - Contrato de Promessa de Compra e Venda" (Promissory Contract), your attorney will ensure the property you intend to purchase is devoid of debt, restrictive clauses, and, if it's land, ascertain that it's suitable for construction. Verifying that any "Câmara Municipal" (Town Hall) plans regarding the property align with the existing structure is crucial. Moreover, the vendor must be current on all financial obligations, encompassing mortgage payments, utility charges, and taxes, and must transfer the property with clear ownership.

Should you require financial assistance for your property acquisition, an additional clause can be included in the "CPCV - Contrato de Promessa de Compra e Venda" to stipulate that the contract is contingent upon mortgage approval, provided both parties concur.

Promissory Contract of purchase and sale

Once a mutually acceptable price has been established and the required documentation is organized, both parties will proceed to sign the promissory contract for the purchase and sale. All the terms and conditions that have been mutually agreed upon pertaining to the purchase will be explicitly outlined in the CPCV. This agreement can subsequently be legalized through registration at the notary office, which the buyer can select as per their preference.

Typically, during this phase, the buyer tenders a deposit ranging from 10% to 30% to the seller. In relation to this deposit, Portuguese law offers clear guidelines: in case of buyer default, the deposit is forfeited to the seller; conversely, if the seller defaults, they are obligated to reimburse double the deposit amount.

Following the endorsement of the promissory contract, your legal counsel will release the deposit to the seller(s) or their legal representative. Subsequently, a specific date is agreed upon, usually spanning a period of 3 to 12 weeks, and stipulated within the contract. This date corresponds to the "Escritura Pública" (Final Deed of Conveyance) – the final step in the transaction process.

Final deed

The concluding document, known as the final deed, is the agreement that shifts the property's ownership from the seller(s) to the buyer(s). This ultimate conveyance deed is ratified by both parties (or their designated representatives) in the presence of a public or private notary, who validates the completeness of all documents before any signatures are affixed. It is precisely at this juncture that the payment is fulfilled, concluding the financial aspect of the transaction.

Following this, the final contract is publicly recited. However, unless the buyer comprehends Portuguese, the content must be translated into the buyer's language.

Upon the formalization of the final deed, the property officially becomes your possession. Nevertheless, it's imperative to undertake the property's registration at the "Conservatoria do Registo Predial" (Land Registry Office).

Sell Your Property in Portugal

Are you contemplating the sale of your property in Portugal? The process of selling real estate can prove to be a challenging and emotionally charged undertaking if not approached correctly. Releasing a place that holds cherished memories can entail a multifaceted journey, yet the promise of embracing fresh beginnings and exciting opportunities can provide a sense of comfort. Navigating this path successfully hinges on placing your trust in both a reputable company and an individual who will expertly guide you through the sale. The competence, knowledge, and approachability of your chosen sales representative can genuinely influence the outcome.

To commence a dialogue about how we can facilitate the sale of your property, you are welcome to contact Engel & Völkers Gaia Gondomar at +351 221 110 257. Alternatively, feel free to send an email to vilanovadegaia@engelvoelkers.com. For further details regarding our real estate agents' contact information, please refer to this link.

Engel & Völkers Gaia Gondomar are poised to offer comprehensive marketing strategies and extend access to a database of committed investors, both directly and through our expansive global network of agents. Your property will maintain a prominent presence on our proprietary websites, as well as on external and international platforms, until a successful sale is achieved. We will meticulously present your property, featuring a carefully selected array of professional photographs accompanied by an enticing property description.

Once your property is enlisted with us, it will be shared with prospective clients within the Engel & Völkers database who are actively seeking properties similar to yours. Our primary aim is to provide sellers with premier marketing services while ensuring a streamlined and stress-free process. Our focus remains on introducing you exclusively to pre-approved clients who possess genuine interest in procuring property in Portugal.

The dedicated team of multilingual and professional estate agents at Engel & Völkers Gaia Gondomar is fully committed to delivering exceptional results in a personalized manner. We eagerly anticipate the opportunity to meet with you and demonstrate how Engel & Völkers excels at effectively marketing and selling your property in Portugal.

Among the initial questions vendors frequently encounter is: "What is the value of my property?" For this reason, we encourage you to extend an invitation to us for a comprehensive property appraisal. Our valuation process is founded on a thorough comparative market analysis, thoughtfully considering the prevailing economic climate.

By entrusting us with your property listing:

• Your property will garner exposure to a diverse array of potential buyers across the globe.

• Your property will benefit from enhanced visibility via our search engine-optimized website and associated platforms.

• Your property will be featured across a variety of prominent advertising channels on both national and international scales.

We will diligently guide you in optimizing your home's presentation and outline our advertising strategies, which encompass the use of "for sale" boards and the meticulous preparation of the sales contract.

Engel & Völkers Gaia Gondomar steadfastly adhere to realistic valuations, steering clear of inflated assessments to safeguard your business interests. Our approach is anchored in accurate data and evidence gleaned from the prevailing market conditions. For free and non-binding valuation of your property please click here.