A time of new beginnings
There’s a real feeling of spring in the air! Covid-19 numbers are dropping rapidly, with Portugal having the lowest daily cases since the start of September (data as of 1st March) and it is looking like it will be business as usual by summer.
If you’ve had plenty of time to make plans to invest in your perfect home in the sun, then here is information on what the buying process looks like for Portugal.
The buying procedure is normally done in 3 stages - Reservation, Promissory and Final Deed. On average this can all take between 1 and 4 months.
Reservation – once you have found your perfect property and agreed on a price both parties are happy with, you will appoint a lawyer and be asked to put down a reservation fee of around €6,000 - €10,000. This is fully refundable and stays in your lawyer’s account, not with the vendor.
The reservation shows the vendor that you are serious about the purchase and they will normally agree to remove the property from the market for 2-4 weeks so that the lawyers can carry out legal checks on the property - documentation etc…
Promissory Contract – this is the second stage and the first legal contract signing. At this point, the purchase/sale is legally binding for both parties. Under Portuguese law, should the buyer withdraw from the purchase they lose their entire deposit. If the vendor pulls out, then the vendor has to pay double the amount of the deposit to the buyer.
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