Specific Steps in buying a property

It is usual for yourself and the vendor to initially enter into a Promissory Contract (Contrato de Promessa de Compra e Venda). This Contract stipulates all the terms and conditions concerning the transaction including the price and method of payment and any deposit which is to be paid. It is signed and registered at the Notary’s Office. This Contract is legally binding on both parties. At this stage the purchaser will normally be expected to pay a deposit, which is negotiable (10% or lately 30% is common practice). The law requires the vendor to repay twice the deposit should he withdraw from the sale. Likewise, it the buyer fails to complete he forfeits the total of his deposit.

The Final Deed must be signed by both parties in front of the selected Notary (Notario). The Notary, prior to the act will check of sale, that all the necessary documents are correct to ensure that the sale can proceed according to the facts provided. It is this document that gives the purchaser proper title to the Property. The Deed must be scheduled with a minimum of 30 days’ notice.

Once the Final Deed is prepared, and certified, the documentation is ready to be registered at the Land Registry. The cost of registration is 1.5% of the value paid or declared on the documentation. Payment is then made of the IUP/SISA tax at the Local Authority. This is 3% of the declared value and payable by the Purchaser. Once this has been completed, the purchase transaction is complete and title to the property will be correctly vested in the purchaser.

Latest Kobalt Law Tweet

Latest Kobalt Law Client Testimonials

English, French and Portuguese Re-mortgages

Thank you for completing complex mortgage repayments simultaneously in three countries. David and Stefano were excellent, remaining calm and efficient in trying circumstances. I was very satisfied with their service, and would not hesitate to use Kobalt Law again.  

Visit Testimonials Page