Algarve Properties with Rental Income Potential
Guide to the Portugese Buying Process
1. Signing a Letter of Intent
On finding a property you wish to purchase, your agent will draw up a 'Letter of Intent, this will be signed by both parties, vendor and buyer. Copies of this will be given to the legal representatives of both parties and will be used in preparing the Promissory Contract. Included in this letter will be the price, what is included in the sale, furnishings etc. and any conditions of the sale plus the dates for both exchange and completion.
2. Exchange of Promissary Contract (Contrato Promessa de Compra e Venda)
The buyers lawyers are responsible for drawing up the promissory contract (Contrato Promessa de Compra e Venda) and as part of the process they will have carried out the legal searches and made sure that there are no charges, e.g. utilities, property tax etc. against the property. The contract will contain details of both parties and include clear title of ownership, when payments are due to be made, the completion date and an inventory, if required. The Promissory Contract is legally binding and will generally be signed by both parties and witnessed by a notary/lawyer. The contract will include penalty clauses in case either party does not fulfill the terms of the contract. A 10%, non-refundable deposit is required at this point, this will be paid to the vendor, through the lawyer's client account. Once the contract has been signed, if the vendor pulls out of the contract, they will be obliged to pay back double the deposit to the purchaser. If the purchaser pulls out, they will lose their deposit.
3. On Completion
The amount of time between signing the Promissary Contract and Completion will vary and will have been agreed in the contract. Before Completion your lawyer will need to arrange with a fiscal representative for you to obtain a Portuguese Fiscal Number. The official Deed of Transfer of ownership (the Escritura) will be signed by you (or someone representing you with your Power of Attorney), this is signed at the Notary and they will retain the document. The Deed will be read aloud by the Notary before all participants sign it. Your lawyer will need to check to ensure that you understand what is being said if you do not understand Portugese. The Escritura, once it has been signed, will officially give you ownership of the property, but will still need to be registered in your name on the Land Registry (Registo Predial) by your lawyer. Your lawyer should obtain a copy of this for your records. Once you have completed, the new utility contracts can be transferred into your name by your lawyer.
IMPORTANT - Disclaimer :
All information provided is believed to be current and provided free of charge. No liability can be accepted for the reliability of the information and statements made as this is obtained from 3rd parties. We always recommend you take legal advice from a fully qualified Lawyer or Notary before buying a property overseas.
Unique opportunity to acquire a traditional estate nestling in over 2 acres of land near all amenities in Boliquelme. On one part of the land is the main house, together with its extensions, a ...
- Floor Size: 558 square metres
- Plot Size: 9,430 square metres (0.94 hectares / 2.33 acres)
- Bedrooms: 12
Rare opportunity to acquire a unique old stone mill with 2 separate guest houses, stables and an expansive pool set in nearly 6 acres of glorious land, while enjoying panoramic views from its peaceful...
- Plot Size: 23,123 square metres (2.31 hectares / 5.71 acres)
- Bedrooms: 7
Superb 4 bedroom spacious and very well presented villa with Jacuzzi and pool, located near the beach and all amenities in Faro. This magnificent property features generous areas, excellent qua...
- Floor Size: 218 square metres
- Plot Size: 393 square metres (0.04 hectares / 0.10 acres)
- Bedrooms: 4
Nestling in over an acre of beautiful landscaped gardens with pool and fruit trees, is this superb single storey, fully renovated and furnished traditional 4 bedroom Portuguese Quinta with detached on...
- Floor Size: 300 square metres
- Plot Size: 5,352 square metres (0.54 hectares / 1.32 acres)
- Bedrooms: 5
Superb 5 bedroom farmhouse and guest house with 2 apartments, situated in a quiet countryside setting within 17 hectares of waterfront land, situated close to Silves. This stunning and secluded...
- Floor Size: 392 square metres
- Plot Size: 177,110 square metres (17.71 hectares / 43.77 acres)
- Bedrooms: 13
Unique opportunity to acquire a fabulous collection of properties and dance studio, nestling in 2 acres of beautiful landscaped gardens with expensive pool and tennis court, while enjoying far reachin...
- Floor Size: 299 square metres
- Plot Size: 8,220 square metres (0.82 hectares / 2.03 acres)
- Bedrooms: 5
Beautiful farm settled in 24 hectares of land with 5 natural dams and panoramic countryside views, located in a quiet setting close to Sao Bartolomeu de Messines. The urban area has a single st...
- Floor Size: 240 square metres
- Plot Size: 239,080 square metres (23.91 hectares / 59.08 acres)
- Bedrooms: 4
Situated in a quiet setting just a short drive from Almancil, this completely renovated and traditional 3 bedroom Quinta, with modern finishes, has a total spacious living area of 250m2 and is set on ...
- Floor Size: 250 square metres
- Plot Size: 1,350 square metres (0.14 hectares / 0.33 acres)
- Bedrooms: 3
Unique opportunity to acquire 3 beautiful properties with expansive pool, nestling in 2.5 acres of glorious land while enjoying panoramic countryside views from its peaceful location near the beach an...
- Floor Size: 533 square metres
- Plot Size: 10,241 square metres (1.02 hectares / 2.53 acres)
- Bedrooms: 8
Beautiful 3 storey, 4 bedroom stone villa with expansive pool, separate one bedroom aparrtment and glorious landscaped gardens, enjoying spectacular views over the golf course to the sea beyond from i...
- Floor Size: 413 square metres
- Plot Size: 1,348 square metres (0.13 hectares / 0.33 acres)
- Bedrooms: 5