Have a clear grasp of the Buying Process in Portugal. From Reservation to Promissory Contract and Final Deed.
Whether you’re buying a new home or seeking to invest in real estate, it is important that you are familiar with the buying process in Portugal and its costs.
Your Property Advisor is an independent service created specifically to empower your position as a buyer or investor, so you can rest assured we act 100% in your interest offering you impartial, informed and candid advice.
Once you find the best property and the time is right, we will negotiate the best purchase price considering your best interest. When we agree with a closing price and you feel confident, the first step is to make a reservation and show your real intention of buying the property.
The main goal of making a Reserva is to take the property out of the market and stop other parties from making higher offers. To protect you!
A Reservation is a simple one-page document that needs to be signed between you and the Seller, along with the Reservation Fee to pay. A Reservation Fee can go from 5.000 to 20.000 euros, and gives your lawyer usually 15 days to check all the real estate documents and make sure everything is ok.
Bare in mind that this is not mandatory, it is possible to skip this step and go straight to the Promissory Contract.
Once all documents are checked, it is time to move to the promissory contract.
This contract will include all the important points of the sale and a complete review of the property. This includes the closing price, the exact information of you and the seller, what is included in the purchase, e.g. furniture, any house work, or other, payment terms and other conditions.
After both parties agree on the contract, you normally pay around 20% of the total purchase price, all this is negotiable.
This contract needs to be signed by both the parties or the lawyers through a power of attorney. At this stage, the contract is legally registered and you can rest assured if by any chance the seller tries to pull out the sale they have to pay you back double the amount you already paid.
At last, the final deed is signed in front of a Portuguese Notary, after all the information is cleared. You will then pay the remaining value plus the Purchase Tax (IMT) and complete your purchase.
For more in depth information about the Documents needed for the Buying Process check our post about "Key Documents for Buying".
Feel free to contact me at carolina@yourpropad.com
