Understanding the Timelines and Deadlines for Real Estate Buyers in Portugal
The procedure for purchasing a home in Portugal can be complex in nature, so it's important for homebuyers to grasp all of the steps and deadlines that are involved. Finding a property that suits a buyer's requirements and price range is the first stage in the buying process.
The next step after finding a home they want to buy is to sign a reservation contract and pay a reservation fee. This charge, which is given to the seller or the seller's agent, is typically around 5-10,000€. The reservation fee secures the buyer's purchase of the property and removes it from the market for a predetermined time, typically between 14 and 30 days. The buyer should conduct due diligence during this time, set up an inspection, and get financing if necessary.
The buyer and seller will normally sign a promissory contract (contrato-promessa de compra e venda) within the 30-day reservation period once the reservation fee has been paid. The purchase price, payment schedule, and any other conditions or eventualities are all specified in the promissory contract. At this time, the buyer will often be required to pay a deposit of between 10—30% of the purchase price. The conditions of the promissory contract, which is a legally binding agreement between the buyer and seller, are set out in it.
The conditions of the promissory contract may be negotiated, so it's essential for buyers to carefully read the document before signing. The buyer might choose to engage a lawyer or translator to help with this process if they don't speak Portuguese well.
The buyer gets a 14-day cooling-off period following the signing of the promissory contract, during which time they may cancel the deal without incurring any fees. This time frame is intended to allow buyers the chance to properly consider the conditions of the contract and make sure they are acting responsibly. The provisions of the promissory contract will apply if the buyer chooses to complete the transaction after the cooling-off period.
The completion of the transaction, which often occurs at a notary's office, is the last stage in the process. The balance of the purchase price, as well as any related fees and taxes, will now need to be paid by the buyer. The property will be transferred into the buyer's name after the notary has confirmed that all required papers and payments have been made. The buyer will become the property's official owner following the sale.
It's important to keep in mind that these schedules and due dates could change based on the particulars of the purchase agreement along with the type of property being bought. The deadlines could be different from those mentioned above, for instance, if the property is being sold as an unit of a brand-new development. In order to make sure they understand their rights and obligations throughout the purchasing process, buyers should also carefully review any contracts and, if required, obtain legal advice.