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.
Bright open plan fully furnished 3 bedroom townhouse with communal pool and tennis court, located near the beach and all amenities in the luxury Resort of Baia da Luz. Fully equipped with air ...
- Floor Size: 125 square metres
- Bedrooms: 3
Magnificent country estate with a separate guest cottage, ideally situated within a quiet and private setting, yet close to Faro airport, the picturesque village of Santa Barbara de Nexe and the golde...
- Floor Size: 800 square metres
- Plot Size: 7,760 square metres (0.78 hectares / 1.92 acres)
- Bedrooms: 6
Spacious 6 bedroom villa in a peaceful residential area in the heart of Albufeira on the Algarve, with swimming pool and a 3 bedroom annex. The property comes with an immense total living sp...
- Floor Size: 613 square metres
- Plot Size: 890 square metres (0.09 hectares / 0.22 acres)
- Bedrooms: 9
Excellent income opportunity with this spacious townhouse, currently divided into 5 parts, nicely located in one of the oldest and most attractive streets in the heart of Portimao. 1. Th...
- Bedrooms: 3
Absolutely outstanding historical country estate encompassing a 7 bedroom fully renovated luxurious villa, six 2 bedroom cottages and a private Chapel, nestling in 8 acres of glorious landscaped ...
- Floor Size: 1,024 square metres
- Plot Size: 32,420 square metres (3.24 hectares / 8.01 acres)
- Bedrooms: 7
Charming character property with transformative modern renovations in the heart of the historical town of Sao Bras de Alportel. This impressive property includes 3 (+1) bedrooms, a roof ...
- Floor Size: 150 square metres
- Plot Size: 150 square metres (0.02 hectares / 0.04 acres)
- Bedrooms: 4
Very well presented 2 bedroom fully furnished ground floor apartment with garden, ideally located near the beach and all amenities in Porto de Mos. The 96.3m2 comprises of a living and dining a...
- Floor Size: 96 square metres
- Bedrooms: 2
Spacious Algarve villa with annexes for sale in Alvor with beautiful mountain views. In addition to the main 3 bedroom villa, this property also features three annexes, two of them T1 and one...
- Floor Size: 275 square metres
- Plot Size: 520 square metres (0.05 hectares / 0.13 acres)
- Bedrooms: 6
Nestling in over 4 acres of land is this charming 3 bedroom single storey property with annexes, enjoying far reaching countryside views from its peaceful location near all amenities in Sao Bras de Al...
- Floor Size: 155 square metres
- Plot Size: 17,672 square metres (1.77 hectares / 4.37 acres)
- Bedrooms: 3
Wonderful opportunity to acquire a stunning 8 bedroom villa with beautiful landscaped garden and pool, nestling in nearly 29 acres of land and vineyards, ideally located near golf courses, the beach a...
- Bedrooms: 8