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 77 acre plot of land with farmhouse, enjoying far reaching countryside views from its peaceful location in Alcantarilha/Pera, Algarve. This old family farm has t...
- Plot Size: 311,790 square metres (31.18 hectares / 77.05 acres)
- Bedrooms: 0
Bright and spacious traditional Quinta with 3 bedroom guest house and pool, nestling in nearly an acre of glorious landscaped gardens, while enjoying countryside views from its peaceful location near ...
- Floor Size: 370 square metres
- Plot Size: 3,200 square metres (0.32 hectares / 0.79 acres)
- Bedrooms: 5
Spacious 3 bedroom apartment, with a total living area of 151m2, ideally located in the popular 'Marina de Lagos' area, just a short walk from the historical town centre and the various Marina cafe's,...
- Floor Size: 151 square metres
- Bedrooms: 3
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
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 fantastic estate nestling in 8.5 acres of glorious landscape gardens and fruit trees, encompassing a fantastic 18th Century Manor House with 6 cottages, a private Chape...
- Floor Size: 560 square metres
- Plot Size: 34,400 square metres (3.44 hectares / 8.50 acres)
- Bedrooms: 12
Superb 7 bedroom villa which is currently being run as a successful B & B business, ideally located just 4km from Lagos and only 3km from the beach and a golf course. Set within around 3 acre...
- Floor Size: 395 square metres
- Plot Size: 13,250 square metres (1.33 hectares / 3.27 acres)
- Bedrooms: 7
Unique opportunity to acquire a 4 storey 30 bedroom property with basement and independent shop located in the heart of the city of Portimao, close to the beach and all amenities. The shop has...
- Floor Size: 992 square metres
- Bedrooms: 30
Unique opportunity to acquire a beautiful 3 bedroom villa with pool and winery, surrounded by nearly 2 acres of glorious land with fruit trees and vines, located near all amenities in Lagos. Th...
- Floor Size: 170 square metres
- Plot Size: 7,000 square metres (0.70 hectares / 1.73 acres)
- Bedrooms: 3
Nestling in over 19 acres of glorious land and fruit trees, is this superb 4 bedroom villa with pool, enjoying far reaching views of the countryside and mountains beyond from its peaceful location nea...
- Floor Size: 505 square metres
- Plot Size: 78,431 square metres (7.84 hectares / 19.38 acres)
- Bedrooms: 4