| Buying a property in the Algarve? |
| Are you looking for your dream villa in the sun? Or does a farmhouse in the Algarvian countryside appeal more to you? Perhaps you have already seen numerous villas for sale but nothing that fits that mental picture. |
| We at Casas Algarvias are here to help you. Casas e Castelos, our real estate company has a wide selection of properties for sale ranging from plots, ruins, farmhouses, townhouses, villas and luxury villas. If you don’t see anything on our website that meets your requirements then please contact us – if we know exactly what you are looking for then we can search the area you prefer for the right property for you. |
As soon as you have made your choice, we will help you through the whole process of the purchase until the key is in your hand. |
| Here follows a guide line of the purchase process: |
1. The Vendor or their legal representative will obtain a certificate (Certidão de Teor registral) from the local Land Registry confirming the property is available for sale. This is one of the documents which has to be produced to the Notary before the signing of the contracts. |
| 2. Property searches. In order to make sure that the property you want to buy has a good clean title, searches must be carried out, at least, in the following public departments: |
| - Conservatória do Registo Predial - Land Registry Department. This is the department where you will find information about a property regarding ownership, description, mortgages, encumbrances and charges. |
| - Repartição de Finanças - Finance Department. You will also find in this department other information about a property - its' description and taxes, i.e. rates(contribuição autárquica). |
| - Câmara Municipal - City Council. In this department you will find information concerning planning permission, possibilities for construction in country areas, rules applicable to certain developments, approval of projects, building licenses and habitation licenses. |
| These searches are normally done for you by your solicitor or estate agent. |
| 3. Promissory Contract |
| In order to secure the deal, it is advisable and usual in Portugal to sign a promissory contract - " contrato promessa de compra e venda " - whereby all conditions for the sale agreed with the vendor will be stated including the completion date. A deposit is payable at the signature of this contract and its amount subject to agreement between the parties. Usually it is approximately 10% of the purchase price. |
| If the purchaser should withdraw from the contract after this contract has been signed then this deposit would be forfeited. If the vendor should withdraw then they would be liable to pay the purchaser double the value of the deposit. |
| 4. Notarial deed of purchase and sale: |
| Completion is known in Portugal as " escritura pública de compra e venda " whereby the ownership of the property is transferred to you, the purchaser. All the property documents must be submitted to the notary, together with the proof of payment of tax on the transfer of the property known as Municipal Transfer Tax (MTT) whenever applicable. |
| This “escritura” is signed in the notary's book on the date you have agreed to close the deal. At this same time the balance of the purchase price is paid to the vendor. |
| 5. Registration |
| Even though you have become the owner of the property when you signed the “escritura", it is the registration of the property in your name, at the Land Registry Department, which grants you full security of ownership, as it will produce effects against third parties. |
| Fees |
| The costs include Solicitor and Notary fees, Stamp Duty and Transfer Tax (SISA). This normally amounts to between 10 and 15% of the purchase price. |
| Will |
| On purchasing a property in Portugal in your name, it is highly recommended that you make a will for your Portuguese assets only. |
| Inheritance Laws |
| It is well worth considering acquiring residency when you purchase your house here, as recent changes in Portuguese inheritance laws mean that you would then be exempt from inheritance tax for your property. |
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| Building your own home in the Algarve? |
| Perhaps you are thinking of building a villa to your own design? Then our construction company, Quinta Rustica, can offer you all the assistance you might need. |
| It is no simple matter to construct a house anywhere and in a foreign country where the regulations are quite different from those you are accustomed to, it becomes even more complex. |
| We can appoint an architect for you and arrange all the necessary documentation you would need for planning permission and all further documents including of course, the habitation license when the building is completed. |
| Quinta Rustica specializes in the construction of country farmhouses and villas using a combination of traditional materials and modern technology. |
For more details on our building specifications click here. |
| Recent changes in legislation |
In any new villa (building) constructed after August 16th 2004, a “Ficha Técnica de Habitação (Property Identification Document) must be issued by the builder. It will be 10 pages long and include many details of the building construction such as width of walls, materials used, colours etc. No Deeds will be completed without it.
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Pease note these are guidelines only. We cannot accept any responsibility for any errors in this text. |
