Make an offer
When you have found the right property here in the Algarve, it is normal that you would make a realistic offer via your agent (the agent that showed you the property). Your agent (for example LwL Properties) will negotiate with the vendor/seller on your behalf. To do this we will need to know
- Your offer
- When you can pay a deposit & exchange contracts (Promissory contract)
- When you wish to complete the sale ( The Deed)
- Any terms (what is included & what is not for example)
Once we have agreed a deal that both you and the vendor are happy with, you will need to instruct a lawyer to help you through the process, arrange a Portuguese tax number (NIF), Portuguese bank account for your utility payments, and currency exchange. All of this we can help you with. We will be here for you every step of the way
Promissory Contract (Contrato Promessa de Compra e Venda)
Usually within 5 to 10 days of agreeing the price, both buyer and vendor enter in a promissory agreement identifying clearly the following:
- The agreed price
- Payment terms (deposit amount)
- Exactly who is the buyer and vendor
- The date of the completion of contract (The deed)
- What is included in the purchase, e.g. furniture, kitchen appliances, car, etc
- Any other terms and conditions
This is a legally binding contract between both parties. This contract will establish in detail all procedures by which the transaction will be effected and the conditions of sale, such as stage payments and the maximum term allowed for completion. The deposit must be paid when signing this promissory contract. Normally between 10% and 30% of the total purchase price agreed, depending on what has been agreed when the negotiation was made. This contract can be signed personally by the Vendors and Buyers, or by the lawyers acting for them can sign the contract if a power of attorney is in place. Most clients opt for this.
Final Contract / Deed (Escritura)
The completion deed will be signed in front of a Portuguese Notary who will intern check all the property and land documents relating to the purchase, and ensures that the purchaser has paid the Purchase Tax (IMT), and any other taxes or debts relating to the property and/or land. The Notary office will issue certified copies of the deed (Escritura) and this serves as official proof that the transaction has been made. At this stage the balance of the agreed purchase price is paid in full.
With the copy of the Deed, and proof of payment, the buyer’s lawyer will then proceed to register the new owner of the property into the Land Registry (Registo Predial) and will give copy of registration to the new owner (sometimes the Notary will do this).
Then you are the owner of your property here in the Algarve, and your “dream has become reality”