Purchasing property in Portugal occurs in stages. Often, these stages occur sequentially and the following is an advisory of how properties are bought and sold in Portugal. Here are some tips though you need to do in order to avoid getting into complications when going through the process of property transfer and ownership in Portugal.
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Look at the property. You can do this by either going to the house and seeing it for yourself or if it is advertised online, look at all the pictures closely in order to have an idea of the condition and location of the property.
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Learn Portuguese. In order to be able to get into the thick of things. By being able to understand the discussions, you can get to up to speed with everything that is being communicated about property.
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Check your finances. This is a long-term investment involving long-term cost. So, you need to be properly prepared financially since there is a lot involved before being able to secure ownership of your dream home.
The Contract of Sale
The very last stage to transfer ownership is in the signing of the contract of sale or escritura. Here are the peculiarities prior to this formality.
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The first stage in purchasing a property in Portugal is the signing of a promissory contract, called a contrato de promessa de compra e venda. This document details such as the owner’s identity, detailed description of the property and the boundaries of the land, tax and registration numbers, the purchase price, deposit and completion date.
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This document can be drafted in English and a deed of sale or the Escritura can be drafted by obviating the contrato de promessa. This is a requirement though when paying a deposit, which is the norm in buying property in Portugal.
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If you purchasing property still to be built, or “off plan” properties, you would need to pay a holding deposit to reserve your right to purchase the property. This holding deposit is provided until the promissory contract is signed. The whole period for this process takes around four weeks.
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In purchasing “off plan” properties, payments are made in stages. These installment plans consist usually of a percentage deposit at about twenty percent. After this payment, you pay another twenty percent upon completion of the roofing, then another twenty percent when tiling on the bathroom and kitchen or doors and window frames are completed. Then you pay another twenty percent upon the completion of the building, ten percent when the exteriors are completed. The remaining ten percent is paid after an agreed period as insurance against defects. This may change altogether depending how far off of the “off plan” property is from completion.
A completion schedule needs to be included in the contract. The details included in this schedule must refer to stage payment dates, completion dates and penalties for non-completion. There must also be explicit guarantees for building work, builder’s insurance policy and the plans and specifications of the building that have been signed off by both parties.
Now that you know some of the finer points, finding the right location for your dream home in Portugal is an important part of this process. Here are some of the great places you can buy your property in Portugal.
One of the most popular places to buy properties is the Algarve. This is the foremost tourist location in Portugal. The sunny temperatures, the white sand beaches and the vibrant atmosphere makes the Algarve one of the best places to make your home. Aside from the great natural setting, there are many resorts located in the region offering amenities such as golf courses, tennis courts, swimming pools and shopping complexes. The only drawback though is that the Algarve is popular with tourists, so expect many out of towners as well as services costing quite high compared to other places.
Lagos is another town that provides a more natural setting with the amenities of the resort towns have. This is one of the most desirable places to live in as it has many gated complexes as well as stunning beachfront properties. This though comes at a price but it sure is well worth it.
Also located near the coast are the towns of Tomar and Abrantes that also have the allure of the more expensive locations but provides much more value for money. There is also a lot of stunning scenery of pristine environments that have been preserved against overdevelopment. In these smaller towns, you can choose to restore an old home and make it your own or build one from scratch. In the end, you can make your home truly your own instead of being limited to the homes built en masse.
If you want a more metropolitan ambience to your home, then you can choose to live in the cities in Portugal. The prime location is Lisbon, the capital city of Portugal. There are other secondary cities you can choose from, such as Sesimbra, Porto and other highly urbanized centers as your home. The prices are very high in these places together with rather cramped options for your home, but being in the hustle and bustle of the city more than makes up for these limitations.
Thus in purchasing property in Portugal, two main factors come into play. The first one is your desire to make Portugal your home. This desire translates to the kind of acumen and perseverance you are willing to undergo and endure as a future homeowner. This includes the time and stress involved in looking for, agreeing to and eventually gaining ownership of a particular piece of property. The second factor involves the financial capacity available to you in purchasing property in Portugal. There are all sorts of fees that need to be paid over and above the purchase price for the property and in sprucing up the purchased home. Add on the cost of your travel and personal expenses in following up and engaging services results in a rather tidy sum. You need to save up in order to gain the rewards you desire in the new home you have just purchased.