Legal procedure

Reservation / Option
Once you have found the ideal property and your offer has been accepted, you may be asked to leave a reservation guarantee deposit with a stipulated time limit, normally € 1.000 to € 6.000. This deposit is normally held by the lawyer until the "CPCV - Contrato de Promessa de Compra e Venda" (Promissory Contract) is signed, but this may differ with different developers. This deposit will be returned if the buyer does not wish to proceed within the specified time limit.

To avoid any disappointment please remember that normally credit cards for the deposit are not allowed, but cash, euro cheques or drafts are accepted. Please keep in mind that failure to leave the deposit or not adhering to the time limit may result in the property remaining on the market.

Lawyer
At this point you will require the services of a qualified property lawyer. If you need a recommendation, we will be happy to provide you with a list of reputable lawyers our company works with that are bilingual. You will need to arrange a "Procuração Pública" (Power of Attorney) stating the terms, signed by all parties involved with the purchase process and registered by the Notary.

This official document can also be created in a country outside of Portugal by using the services of the Portuguese Embassy, Consulate or Notary in the language of the country concerned. In the case of the foreign language, the document must have the Seal of the Notary and an Apostil attached. An official translation into the Portuguese language will be necessary prior to "Escritura" (Final Deed-title). Lawyers and legal fees, vary from 1% to 1,5% on average. A major benefit is that a "Procuraçao" (Power of Attorney) can be given to a lawyer, saving you time and travel costs to sign documents personally.

Prior to the signing of the "CPCV - Contrato de Promessa de Compra e Venda" (Promissory Contract) the lawyer will ensure that the property you wish to purchase is free of debt, restrictive clauses and in the case of land purchase, that you are able to build on the land. It is important to ensure that any plans in the "Câmara Municipal" (Town Hall) referring to the property, agrees with the existing construction.

Promissory Contract
Once the price is agreed to and the documents are in order, both parties will sign a "CPCV - Contrato de Promessa de Compra e Venda" (Promissory Contract). All the terms and conditions agreed by both parties relating to the purchase will be set out in the CPCV. This Contract is then legalised by registering it with the Notary Office. The buyer normally pays a deposit between 10% to 30% to the seller at this stage. With regards to the deposit, the Portuguese law is quite clear i.e. if the buyer defaults, he will loose his deposit to the seller, BUT if the seller defaults he is obliged to return the deposit paid in double to the buyer.

The vendor must be up to date with the payment of all charges (such as mortgages) or debts (such as utility bills) and must sell the property with vacant possession. If you require financing for your property, an extra clause can be added into the "CPCV- Contrato de Promessa de Compra e Venda" (Promissory Contract) stating that the contract is subject to mortgage approval (if this is mutually acceptable).

Upon signature of the promissory contract your lawyer will release the deposit to the purchaser or their lawyer. A date is agreed to for the signing of the "Escritura Pública" (Final Deed-title).

Final Deed
In accordance with the Portuguese Civil Code, the act of purchase and sale of a property urban or rural must be consigned on a public notary deed. This Contract by which the property is transferred from one owner to another is signed by both parties in front of a public or private notary or his representative, who confirms that all documentation is in order.

It is at this moment that payment is normally completed to the seller. After the act is recorded the Notary Office will issue a photocopy of the entry (with the Notary seal), which is the buyer's proof that the act has officially taken place, but further official copies can be requested at any time. Please note, this document should not be mistaken for a "Title Deed" - as known in the UK.

Usually the Final Deed is 3 - 12 weeks after signing the CPCV- (Promissory Contract). Once completed and the property has been registered with the "Conservatoria do Registo Predial" (Land registry Office), it is legally yours. In order to buy a property in Portugal, you will need an NIF number (Fiscal Tax number). Note: With your fiscal number you can open a bank account, buy property or a car and pay tax.

Who is the Notary?
The notary is an independent public or private identity who acts as official witness and legal guarantor of the property transfer ownership. In accordance with the Portuguese Civil Code, the act of purchase and sale of a property urban or rural must be consigned on a public notary deed. This Contract by which the property is transferred from one owner to another is signed by both parties in front of a public or private notary or his representative, who confirms that all documentation is in order.

Please note: These are for guidance only and we cannot accept responsibility for any mistakes or misinformation. We strongly recommend Legal and Fiscal Consultations at all times prior to any transaction as the laws are constantly changing.