Algarve Golf - Real Estate
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The information shown below is to guide any buyer in acquiring a suitable villa, apartment, farm, estate, or a commercial property, for either holiday or residential usage. For complete information visit: www.property-algarve.net

The legal regulations are very specific when buying a property in Portugal; however, it is always advisable to use qualified legal advice in any transaction.

It is also important to insure that any plans in the Town hall referring specifically to the property do physically agree with the existing construction. A property for living purposes must also have the following documentation.

a). A Habitation Licence for property constructed after 1951

b). A Certified insertion in the records of the Land Conservatory

c). A detailed "Caderneta Urbana" from the Tax Office

Commercial and Industrial properties require both Points b. and c.

In the case of a rural property the following extra documentation is necessary which is a detailed and up-to-date "Caderneta Rustica" from the local Tax Office

Each Town hall and Tax Office tends to have local interpretations of the laws and regulations and these should be first checked prior to a purchase. It is recommended to implement legal and other specific searches prior to acquiring a rural property.

There are laws regulating Estate Agency practices and each Agent must have a Licence granted by the State. The present laws are limited in their usefulness and protection of any of the parties involved in a transaction.

The practice is for the seller of a property to pay a commission to an Agent but it is not a controlled percentage as it does vary from area to area.

Here are the basic steps to help understand the procedures and legal acts that are involved in acquiring a property in Portugal. Again, it is recommended that qualified legal advice be sought in any purchase.

As partial protection only use a Government Licensed Estate Agent.

It is quite normal for both Parties to initially enter into a Promissory Contract detailing the conditions of Sale - "Contrato de Promessa de Compra e Venda". This Contract is then legalised by registering it in the Notary Office. This Contract is legally binding on both sides and the law requires the seller 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. There are specific laws on this act that a Lawyer will define.

It is often convenient for the buyer to ask a third party such as their Lawyer to act for them in the matter. A document called "Procuração Publica" is prepared with the necessary details and registered in the Notary. This can also be implemented in a Portuguese Consul in a foreign country.

Every buyer is required to obtain from the Tax Office (Finanças), a fiscal number.

Prior to act of completion, the purchase may be subject to a payment called "IMT" to the Tax Office. Depending upon the nature of the purchase the amount can vary.

When all the above requirements have been completed the sale can proceed with the act known as "Escritura de Compra e Venda" which takes place in front of the selected Notary and is recorded in his official books. It is at this time that the balance of purchase has to be made according to the signed Contract in Point 2 above. The Notary Office then issues a photocopy of the entry of this act that should not be mistaken for a "Title Deed" as known in the UK.

On proof of the above act the property in question is then registered in the Land Registry (Conservatoria do Registo Predial), in the new owners name. As it is not obligatory for this to be done until the owner wishes to sell the property, it is strongly recommended that this registration is made immediately as a preventative measure against possible financial abuse by the previous owner.

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