Buy Portugal Property
The Buying Process
The process of buying property in Portugal is really straightforward and once you have identified the property you wish to buy, you can simply make an offer.
Once your offer has been accepted, you will sign the Promissory Contract to buy, preferably at a Notary’s office.
Use the services of a competent lawyer when you buy property in Portugal as they will guide you throughout the purchasing process and advise on the financial aspects.
The normal contractual obligations of an intended purchase in Portugal will mean that you will forfeit your deposit if you pull out of the contract and the seller will need to double your deposit if they do the same.
Prior to closing the sale, you will need a Portuguese Fiscal number and pay the necessary taxes.
You should account for an additional 8% to 10% on top of the purchase price to account for these expenses.
How to Buy Property in Portugal
Obtain the right information
How do you determine the right price to offer on a house for sale in Portugal with the terms 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 real estate agent.
A professional property 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 up to date knowledge of the local real estate market.
Without this local knowledge of the existing market, you may offer more than the house is worth, or worse still, you could potentially ignore a terrific buying opportunity, for lack of the correct information.
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 before their own.
Have a clear objective
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 property needs will allow you to have a clear objective which will put you in a much better position when looking for your new home.
- How many bedrooms do you require?
- Where will you spend most of your time?
- How big a house do you really require?
- How long do you intend to keep the property?
If you buy a house in Portugal which is not large enough you may feel without freedom, and contrary to that, if your house in Portugal is too large the maintenance and upkeep may be more than you wish to cope with.
Prior to buying a house in Portugal you should make an accurate list of all the things you want from your new home and the surrounding neighbourhood.
If you can do this, you are on your way to finding your perfect home and environment.
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 €2000 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 before you buy
Before you decide to buy a new house in Portugal it is recommended that you obtain your funding first.
It only takes a short time to get financing pre-approval when shopping for a home in Portugal, which gives you more power, as a seller is more likely to consider an offer from a serious buyer who already has funding in place.
Whether you have your own funding facilities or whether you are just putting them in place, let Living Portugal Property find you a better deal as we work with a number of financial institutions and in many instances can offer our clients funding with better spreads and conditions.
Additional buying expenses
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 Purchase 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.
To find your ideal home in Portugal, enlist the assistance of a professional agent.
Contact Living Portugal Property, for a smooth purchase.
For Information & Professional Advice