Guide Lines

Any property may be purchased through a government licensed Estate Agent, in Portugal they are called "Mediadores Imobiliários"- estate agents.

Once you have found your property with the assistance of the "Mediador Imobiliário"- estate agent then you should take professional advice from an English speaking lawyer, who can represent you throughout the purchase process.
Your lawyer will obtain the following documentation and proceed to preparing contracts:

1. Checking the documentation: (At this stage your lawyer will get involved in the transaction, and you can give him, if you would prefer, a Power of Attorney to sign the documents on your behalf).

Your lawyer will require the following documents from the sellers:

a) The sellers' identification, including his fiscal number.
b) Certidao Teor da Conservatória do Registo Predial (Certificate from the Land Registry Office): confirms that the seller has the title of the property, and also if the property has any outstanding mortgages.
c) Caderneta Predial Urbana (Booklet): confirms the inscription of the property in the Finance Department, its location and also the rentable value.
d) Plantas: certified copies from the town council of the plans of the property. Confirms that no changes have been done on the property after the issue of the habitation license.
e) Ficha Técnica: the document that is requested to all properties built from 1st of January 2004. This gives all the information about the property such as the builder's details, the materials used and the suppliers.

2. Promissory Contract of Purchase and Sale: Once the duly diligences are done and your lawyer confirms that everything is in order, a promissory contract (so that the seller can take the property off of the market) can be exchanged between the seller and the buyer.
The promissory contract of purchase and sale will include the following:

a) Identification of the promissory sellers and promissory buyers (identification, address and fiscal number;
b) The identification of the property: description, location, registration number, construction license number.
c) The agreed purchase price;
d) The amount of the deposit ("sinal") paid on the date of the signature of the promissory contract. (usually 10 % of the purchase price)
e) The deadline to sign the final deeds
f) Conditions in case of default on the contract
On the date of the signature of the promissory contract, the deposit money is passed on to the promissory seller and will be presented for payment. If the promissory buyer doesn't comply with the contract, the deposit money usually remains with the promissory seller, but if the promissory seller doesn't comply with the contract, usually he is required to refund the promissory buyer with twice the amount o the deposit.

3. Final Deed ("escritura"): The final deed contains the identification of the parties (seller and buyer); the identification of the property, the purchase price. The final deed is signed in a Notary Office, for the reading and signing of the deed. Before the signature of the deed, it will be translated into English, and the balance of the purchase price is paid to the seller.

4. Property Purchase Tax ("IMT"): Before the signature of the final deed the buyer must pay at the Finance the property transfer tax ("IMT"). This tax has to be presented to the Notary before the signing of the final deed.

5. Stamp Duty and Registration: The notaries' costs and stamp duty must be paid by the buyer, after the signature of the final deed. After collecting a certified copy of the deed the property has to be registered on the buyers' behalf at the land registry Office.
The Utility companies shall also be contacted to change all contract into the buyers name as well as the Finance department for the payment of the rates ("IMI").The fiscal number, issued by the Finance department, is a tax number and is required to open bank accounts, purchase property, pay rates, utilities, etc.). According to the Portuguese Law, non-resident in need a fiscal representative ( assured by accountants) who are obliged to guarantee that the non-resident comply with their tax responsibilities.

The above information is been provided by two lawyers that we work with:

Giselia Farias (Licence number 606-E)
Patricia Correia (Licence number 435-F)