The Purchase Process
We highly recommend seeking a trustable lawyer right from the start of your property search.
He will then be ready to help you move quickly and legally secure the property you have found.
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Once you have found a property, building land or an off-plan construction project, you are going to need a trustable Portuguese based lawyer before you pay anything or sign any purchase commitments.
The ‘Power’ of Attorney’ can be completed in your own country or in Portugal. If you complete the Power of Attorney paperwork outside Portugal you will need to visit a registered Notary in your home country to have the paperwork officially validated and stamped. The original signed copies then have to be returned to Portugal.
The lawyer will keep you and your funds safe as he evaluates the purchase and looks for any potential pitfalls. Lawyers in Portugal usually charge between 1% and 2% of the purchase price for their services. It is also quite common for foreign buyers who are based overseas to give their lawyer a signed temporary ‘Power of Attorney’ with specific powers to complete the sale on their behalf and sign legally contractual paperwork.
When you buy a property in Portugal your lawyer will view all of the purchase documentation for the property before he then draws up the binding promissory contract.
The promissory contract describes the property, land or construction contract and identifies the owners and the buyers, he also outlines the terms of the purchase and the timeframe for completion of the sale.
The seller will review the promissory contract and agree the terms. Sometimes special terms can be added to the promissory contract that allow the purchase to proceed subject to these additional terms. The added special terms might relate to a mortgage or a Golden Visa application being first approved.
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Once the terms of the promissory contract have been met, the buyer and seller or their appointed legal agents, meet again in front of an appointed state notary to sign the Escritura.
The Escritura signing represents the final act of the sale. The buyer pays the full remaining amount to the seller and the seller hands over the keys to the property.
The property is then registered in the name of the new owner with the Land Registry and the sale process is complete.
Another common type of purchase made in Portugal is off plan or a new property from a developer
When purchasing off-plan or purchasing land for building your lawyer might suggest some suitable additions and clauses for the promissory contract. When buying off-plan on a development your lawyer may well suggest a protected payment plan that aligns to construction milestones and dates.
When buying land your lawyer will carry out the investigations to certify the registered land type and ascertain if the land is titled as construction or agricultural. The lawyer will also be able to attach conditions to a purchase around any complex issues to protect you in case of any unusual events that might occur.
