Let’s talk about the costs associated with buying a property in the Algarve.
Since the seller pays our fees you can make use of our services without having to think about any of the costs attached. If you are looking for property within the Golden Triangle, we have an extensive portfolio of property to buy in the Algarve that I am sure will meet your objectives.
When you find your dream home in the sun, it’s time to negotiate. You ‘ll be asked to put a formal offer in writing with details of any conditions such as possible completion date, deposit amount when you will sign the Promissory Contract (CPCV), the amount you will pay for fixtures and fittings and so on. Our team handles all the communication and ensures all the elements are in place to enable the process to run smoothly.
When everything is agreed we put it in writing to your lawyer and the vendor’s legal representative. Once your offer has been accepted and the contract is being prepared, if you’d rather not deal with the bureaucratic part of the process yourself, you can give your lawyer Power of Attorney to act on your behalf. They can obtain the Certidão Permanente, which provides details of the property ownership. You will also need a copy of the Caderneta Predial, which proves the property has been registered for tax purposes. The third document you will need is the Licença de Utilização – this documents the property usage such as residential or Commercial.
The next step is for your lawyer to prepare the legally binding Promissory Contract – the Contrato de Promessa de Compra e Venda or CPTV. This provides the buyer & seller details, the values and timelines agreed. At this stage, a deposit of between 10% and 20% is payable and if either party pulls out after this without a valid reason, penalties are payable. If the buyer is at fault, their deposit is forfeited; if it’s the vendor at fault, they pay double the deposit amount to the buyer. Sometimes the purchase/sale of a property can take place without a CPCV being signed if a quick sale is needed and the turnaround does not warrant the extra paperwork.
The last step is the production of the Escritura or Final Deed that takes place approximately 30 – 60 days after the CPCV has been signed. On the agreed date and time, the buyer, the vendor, lawyers, bank representatives (if credit is being sought or paid off) and the notary all gather in the notary’s office. Here, the final contract is read out, in Portuguese, and all the documents are checked and verified.
Once all this has been done, bankers drafts are handed over to the vendor and if applicable, to the vendor’s bank representative in payment of any outstanding debt. Clearly, if you do not speak or understand Portuguese, you will need the services of a translator or an English-speaking lawyer, as it is essential that you understand the contents of the contract being read out.
Once everything is signed and the funds are transferred, your new life in your dream home on the Algarve can begin!