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.
Surrounded by 3.5 acres of glorious landscaped gardens, fruit trees and rustic land, is this beautiful 3 bedroom villa with expansive pool, enjoying far reaching views of the mountains, sea and river ...
- Plot Size: 14,000 square metres (1.40 hectares / 3.46 acres)
- Bedrooms: 3
Located just a short walk from the award winning Porto de Mos beach and with lovely sea views, this fully furnished 2 bedroom apartment has a large south facing balcony overlooking the pool towards th...
- Floor Size: 91 square metres
- Bedrooms: 2
Bright and spacious villa, with a vast total living area of 824m2 which is split into 3 apartments, ideally situated within a highly sought after area in Portimao, with stunning views overlooking the ...
- Floor Size: 824 square metres
- Plot Size: 1,939 square metres (0.19 hectares / 0.48 acres)
- Bedrooms: 15
Character 5 bedroom villa located in a quiet setting close to Fuseta, set on a large plot of 10,160m2 with a swimming pool and stunning views towards the sea. Villa 4 Bedrooms Separate Guest A...
- Floor Size: 218 square metres
- Plot Size: 10,160 square metres (1.02 hectares / 2.51 acres)
- Bedrooms: 5
Beautifully renovated and refurbished 3 bedroom villa with one bedroom annex, pool, roof terrace and garden, located near the beach and all amenities in Vilamoura. This lovely modern property h...
- Floor Size: 158 square metres
- Plot Size: 1,200 square metres (0.12 hectares / 0.30 acres)
- Bedrooms: 4
Unique opportunity to acquire a very well presented 4 bedroom villa with a garden and independent access to 2 bedrooms, enjoying far reaching views over Estoi to the sea beyond. Entering one o...
- Plot Size: 142 square metres (0.01 hectares / 0.04 acres)
- Bedrooms: 4
Stunning 3 bedroom fully furnished villa with pool, garden and separate one bedroom apartment, enjoying far reaching countryside views from its peaceful location near all amenities in Sao Bras de Alpo...
- Floor Size: 227 square metres
- Plot Size: 1,790 square metres (0.18 hectares / 0.44 acres)
- Bedrooms: 4
Enchanting and totally refurbished 4 bedroom traditional farmhouse, with a total living area of 410m2 and set within a beautiful manicured garden of 2,289m2 with a swimming pool, located in a quiet se...
- Floor Size: 410 square metres
- Plot Size: 2,289 square metres (0.23 hectares / 0.57 acres)
- Bedrooms: 4
Superb 4 bedroom villa with stunning panoramic views, ideally situated in a quiet setting close to Sao Bras de Alportel. With a total spacious living area of 444m2, features include: entrance ...
- Floor Size: 444 square metres
- Plot Size: 1,290 square metres (0.13 hectares / 0.32 acres)
- Bedrooms: 4
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