What is the process for buying in Portugal?
If you are buying a resale property, your lawyer will ensure that the title deeds, habitation licence and caderneta urbana (which defines the size of the property and its boundaries) are all in order. A survey will also need to be carried out at this point. A 10 per cent deposit is usually required when you sign the preliminary contract, which sets out the terms of the sale – including a completion date. If you back out of the purchase after signing the preliminary contract you will have forfeited your deposit. If the vendor backs out after signing you will be due 20 per cent compensation. On completion, the balance of the purchase price plus all fees must be paid, and then both parties sign the escritura (title deeds) before a Notary Public. Ownership is then officially transferred. The transfer of title then needs to be lodged in the land registry and the local tax office. When buying an off-plan property, a small deposit is usually paid, followed by a series of stage payments.
