When purchasing a property in a foreign country to seek legal advice from government registered lawyers or solicitors is simply vital.
Countries laws and how things work will most likely be very different then what you are used to back at home.
In Portugal the legal system for purchasing real estate is aimed towards protecting the buyer.
Step 1 is to find and identify a property you want to buy, make an offer and get an offer agreed, including purchasing conditions.
Some agents will ask you for a reservation deposit although this is not a legal requirement.
The first legally binding document to tie up the deal, is the promissory contract. In the contract any clauses like for example mortgage approval, building survey, inventory lists, etc can be included into the contract. In Portugal it is standard to pay a deposit of 10%, in some cases it can be advisable to pay a higher deposit to avoid the risk of gazumping.
In Portugal if the buyer drops out of the contract he loses his deposit, if the buyer wants doesn?t want to proceed with the contract he needs to pay back double the deposit.
Normally 4-8 weeks after the promissory contract the deeds can be scheduled at the notary. The whole sales process can be as quick as 2 weeks or in most cases 4-8 weeks.
When there is a mortgage on the property the bank will come to the notary to release the mortgage, this is overseen and checked by the notary.
The information above is a mere guideline and variables on the information above is possible, especially when dealing with properties held within company structures.
This information is for mere informational purposes only and your lawyer can advices you on the correct purchase process for your purchase.
Rua Ernesto Cabrita
Edificio Vales, Loja -A
8400 387 Lagoa - Algarve - Portugal
Tel.: +351 282 353 019
Fax: +351 282 381 421
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