When it comes to buying a property in Portugal, the purchase process is actually fairly simple and straight forward.
The most important step is to find your dream home in the sunny South. From there on, we can break down the buying process in the following steps:
The first step is to start with the search to find a property. Most buyers will start by browsing various property websites and websites from local agents, to see what is available in their preferred area and what the prices are currently like.
Establish contact with local agent(s) and make enquiries on properties which suit your wish list. In the Algarve, it is common for a villa to be for sale with multiple agents. Therefore, Exclusive Algarve Villas offers a free property finding service. Via our network, we can easily offer you a number of suitable properties without you having to contact dozens of agents and explaining what you are looking for over and over again.
Once you have shortlisted a number of interesting properties, the next step is to book a flight and viewing trip. Depending on your time schedule, we recommend 3-7 days. For buyers who already know the area, the Algarve, real estate market, etc., the trips can be shorter and more focused.
For the buyers who are not familiar with the Algarve and the real estate market in general, we recommend that you visit the Algarve for at least a week and visit the different regions (east / central / west Algarve), as each part of the Algarve is very different in terms of landscape, views, climate but also the properties and property prices.
Once you have identified where you want (and don’t want to be), we can narrow down the search and line up the viewings.
The property visits. When viewing properties, we recommend not to view dozens and dozens of properties per day, but rather to limit your viewings to a maximum of 8 per day. Make notes when visiting the properties, so that at the end of the day you eliminate the ones not suitable for you.
Buying a property abroad has much to do with the feeling for a certain property. You normally know when you walk into a property if you like it or not. Once you have found a property which matches your wish list and you would like to buy it, you and now enter into the purchase process.
You found yourself a suitable property, congratulations !
Now it’s time to make offers. When making an offer, not only is the price important, but also the purchase conditions are of vital essence.
Most buyers we have, are the so called ‘cash buyers’ – meaning, no financing is needed. This is an important fact in today’s real estate market to negotiate an attractive purchase price. Mortgages are difficult and lengthy to obtain, and are in most cases, are not good tools to negotiate good purchase conditions.
Important considerations for making an offer are:
- Do you want to buy the property “as is” or does your offer include furniture and/or other items
- If furniture and items alike are included in the offer, make sure to have a written offer with identification of all these items to avoid confusion.
- Are you making a cash offer or is it subject to obtaining a mortgage?
- If you need a mortgage, have you already been pre-approved ?
- How soon can you sign the promissory contract? (contrato promessa de compra e venda)
- After the promissory contract how much time do you need to close and do the deeds (escritura)
Getting ready for the purchase. Once you have made an offer on a property, you have to be prepared for it being accepted and have to be ready to proceed to the purchase. At this stage, you will require to have a lawyer/solicitor in place. In order to purchase a property in Portugal, the first thing you will need, is a fiscal number. This can be arranged by your lawyer/solicitor.
If you are not going to be staying in Portugal long, then you can arrange for a Power of Attorney (Procuração) so that your lawyer can act on your behalf for the purchase of the property.
Signing the promissory contract and deeds.
Once you have agreed on all the terms of the purchase, it is time to sign the promissory contract. You will be required to make the down payment on the property at this stage and the property will now be officially off the market.
Once the promissory contract has been done, you can proceed to fulfill any outstanding terms that were agreed to be concluded prior to the deeds (such as financing, survey, land transfer tax, etc), and move on to the scheduling your deeds. If you have not given “power of attorney” to your lawyer to represent you at this stage, you will need to make arrangements to be present. The deeds take place at the notary in a location most convenient for all parties involved. You are at this stage, the official new owner of the property and you are now ready to move in!
Open the door to your new villa and pop the champagne or poor yourself a nice vinho verde (or other drink preferred) and enjoy the Algarve!
Welcome to paradise, welcome to the Algarve! We hope you will have an excellent time enjoying this stunning piece of Portugal, from soaking up the sun on the superb beaches to enjoying sunset diners at by the pool side. There is much to be discovered in this province in the South Portugal.