How to buy property in Portugal
Buying property in Portugal can be emotional, as well as a sizable business transaction and therefore must be treated with due care and diligence. If you take the time to prepare a detailed and systematic plan on how to buy property in Portugal, you can be certain of avoiding costly errors. Below you will find a number of suggestions on how to make the best of your house buying experience in Portugal.
Obtain the right information
How do you determine the right price to offer on a house for sale in Portugal that you like? Is the listed price too high? Have you found a superb deal? Your own due diligence is vital, as is the information provided by your agent. A professional real estate agent should be able to offer an unbiased opinion on the value of the house in Portugal, based on a variety of known before factors and knowledge of the local real estate market.
Without this local knowledge of the existing market, you may offer more than the house is worth. Worse still, you could potentially ignore a terrific buying opportunity. When you are looking for a real estate agent in Portugal make sure you hire a professional agent who you can trust and whom will take care of your interests.
Buying a house in Portugal
The following question may sound simple but do you truly know what type of house in Portugal you require? Having a complete understanding of your house needs will allow you to have a clear objective which will put you in a much better position when looking for your new house. How many bedrooms do you require? Where will you spend most of your time? How big a house do you really require? If you buy a house in Portugal which is not large enough you may feel without freedom.
On the contrary if your house in Portugal is too large the maintenance and upkeep may be more than you wish to cope with. It is at this stage prior to buying a house in Portugal that you should make an accurate list of all the things you want from your new house so that as well as finding a great house you will at the same time discover a great house that is right for you.
Is the Title free and clear?
Prior to you completing any transaction make sure that you know how to buy property in Portugal by making certain that what you are buying is registered and free of all liens. Many houses in Portugal are not registered correctly and it is therefore imperative that before you sign any documents that you know the full parameters of the property title.
The lawyer that completes your transaction will on your behalf make sure that your new house has free and clear title.
Read the Title document
A large proportion of buyers of property in Portugal overlook the discrepancies that exist between the Title document and what has actually been constructed. The title document will highlight the boundaries of the property and state the size of the property.
By consulting the Title document you will be certain of getting what you are paying for.
Paying for a survey
The majority of Portuguese buyers do not obtain a structural survey for the house that they are purchasing which unfortunately leaves them completely vulnerable to unexpected faults within the house.
For a fee in the region of €1000 your surveyor will provide you with a detailed report that will highlight any flaws or problems that your new house may have. It is recommended that any offer you make is subject to a satisfactory report.
Qualify for funding first
Before you decide to buy a new house in Portugal it is recommended that you obtain your funding first. With many of the requirements for obtaining funding changing recently it makes sense to know beforehand what is available for you. Pre-approval will also put you in a better negotiating position as the seller will be aware that your funding is already in place.
Apart from the funds required to buy a house in Portugal you will also need additional funds for taxes, legal fees, surveys, and insurance. These fees and taxes will vary from house to house, however you may wish to budget for an additional 10% of the house value for additional expenses.
Signing the contract
The signing of the contract will be done at a local Notaries office who are licensed by the Portuguese Government. As a foreigner who probably doesn’t yet speak Portuguese it is imperative that all documents are read out in your own language. This can be arranged prior to your purchase with the help of your realtor, lawyer or even at the notaries office.