Buying your House
With Premier Algarve
Documents
When acquiring a property, it is essential to ensure that all documentation is in order. At Premier Algarve, we have strategic partnerships with law firms specializing in real estate law, guaranteeing rigorous legal support throughout the entire process.
This ensures that every transaction is conducted with a high level of security, transparency, and trust.
Documentation common to any property.
Regardless of the type of property, the following should always be analysed:
- Permanent Property Registration Certificate
Confirms ownership and identifies any liens or encumbrances (mortgages, seizures, etc.). - Tax Registration Document (Caderneta Predial);
Tax document containing the property's identification and characteristics. - Habitation License (Licença de Habitação ou Utilização)
It ensures that the property is authorized for its intended use. - Energy Certificate
Required by law, it indicates the energy efficiency of the property. - Identification documents (Tax Identification Number and personal identification)
Required to formalize the purchase process. Apartments
In addition to the basic documentation, it is essential to verify:
- Condominium Regulations
Sets the rules for the use and operation of the building. - Declaration of no debt to the condominium.
It confirms that there are no outstanding charges. - Condominium meeting minutes
They allow for the identification of planned works, future costs, or potential problems in the building. - Value of condominium fees
Important for evaluating recurring costs. Housing.
The dwellings require a more detailed, further analysis:
- Land/lot registration
Confirms the property's boundaries and legal framework. - Project approved and municipal permits obtained.
Including any changes or expansions made. - Swimming pool license (when applicable)
Verification of the legality of all constructed elements. - Infrastructure and access
Water, electricity, sanitation, and access are all properly legalized. - Possible expansions or additions
Confirmation that they are properly licensed.
Sale Process
Once you have found the property of your choice, the estate agent will most likely ask you to sign a:
- Promissory contract of purchase and sale / Reservation contract (Contrato de promessa de compra e venda): This preliminary contract is signed up by both parties. It will reserve the property until for example the mortgage comes through. It should include all details of the property, the terms and conditions agreed, price, completion date, inventory etc. A deposit of minimum 10%of the purchase price is usually required.
- Property Transfer tax (IMT): This tax is payable by the purchase before the granting of the final deed (Escritura de compra e venda). Proof of its payment is required by the notary. The amount due is variable, depending of the property's price and is based on a sliding scale. The maximum rate being 8% of the property price.
- Final Deed (Escritura de compra e venda): The final deed is done before a notary and this is prepared and drawn up based on the property's documents. The presence of either parties (seller and purchaser) or their legal representatives are required to sign the deed. At this stage, payment of the balance of the price must be made. Previous to the deed, all expenses and taxes relating to the property have to be in order; otherwise you might be responsible for those payments (E.g. rates, electricity and water bills).
- Land Registration (Registo Predial): After obtaining a certified copy of the deed, the registration of your property must be applied for, so that the property will be registered in your name.
- Notary and registration fees: These payments are the responsibility of the purchaser and the amount due is approximately 1% of the property price.
- Utility Bills: Following the deed, ensure all utility bills (rates, gas, water, electricity, telephone) are transferred into your name. Your lawyer/solicitor can assist you with this.
- Property Rates Tax (Imposto Municipal sobe Imóveis): This tax each house owner will have to pay annually, which is approximately between 0,4 and 0,8% of the tax value.
If you need any professional advice from a lawyer/solicitor/mortgage advisor/bank - please contact us.
Note: please be aware that this information is not a substitute for professional advice and we cannot accept responsibility for any kind of loss or damage.
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