Guide to selling property in Portugal
General Information
When you thinking about selling a property with a real estate agent, please make sure that the agency that you work with is government licensed i.e. CarvoeiroAtlântico Mediação Imobilíario Lda nº. IMPIC 7319, APEMIP 3731
The reason for this is because the agents must always renew their license by means of formation and courses annually. This is to make sure that all requirements and regulations are being strictly controlled and the standards up kept. This license imposes strict regulations on the company and gives both sellers and buyers peace of mind with regards to all property transactions.
Our philosophy of service, reliability and real market values has been a very successful over the years and is aimed to help you achieve your objective: sell your property at the highest price the present market allows. We have many years of experience and knowledge in Carvoeiro, so let us assist you in creating the most effective marketing strategy for your property and support you in realising your goal.
Our web site is a strong marketing tool and is updated on a regular basis with all properties on offer plus we have an extensive portfolio of clients looking for properties.
If you are thinking of selling your property, please contact us at camil6@world.net.pt or (00351) 282 359 533
Below are some important points to help understand the selling process:
Promissory Contract and Deposit
Registration, Taxes and Legal Fees
When you decide to sell, you are required under Portuguese law to sign a government approved sales contract which needs to be supported with the following documentation:
a) Caderneta Predial (Tax Registration document)
b) Certidão do Registo (Land Registry document)
c) Licença de Habitação (Habitation Licence)
d) Número Fiscal (Tax numbers)
e) Escritura (Deed)
f) Certificado de Energia (Energy Certificate) – since November 2013 this needs to be in place before a property can be marketed
g) Planos (Plans)
h) Passaportes (Passports) & Comprovativo de Morada (Proof of address - Utility Bill etc)
The sale of property in Portugal is relatively straightforward provided the ownership of the property is clear and the purchase laws were originally adhered to. The process, as when you bought, consists of two stages - the promissory contract (contacto promessa de compra e venda) and the final deed (escritura).
We can supply a list of local lawyers that we have worked with over the years, who will speak your language and together we work as a team to advise you on all aspects of the legal side of selling your property, so you don’t have to worry.
The lawyer will establish that all buildings including swimming pool are formally registered correctly with all entities as well as checking for any possible onuses, liens or obligations that maybe registered on the property. This is done by checking the property documentation i.e. Caderneta Predial, Certidão do Registo and the Habitation Licence all of which have to be updated and be current when presented to the Notary on the signing of the deed.
Rather than flying to Portugal and home again during the selling process, the simple way is to give your appointed lawyer Power of Attorney (PoA) to sell on your behalf. The whole process can be conducted by e-mail, the lawyer will require copies of your passports and a utility bill as proof of address. They will then produce a general PoA to sell the named property on your behalf in Portugal which they will e-mail to you, in Portuguese and in your own language, so that you understand what you are signing. You then go to your local Notary to have your signatures witnessed, the Notary can then arrange for the PoA to be sent to the relevant Government department for an ‘Apostille Stamp’ which under the ‘Hague Convention’ legalises the document in Portugal. Once you send the original PoA back to your lawyer, they can then proceed to the next stage of the selling process.
Promissory Contract and Deposit
This is a legally binding agreement between both parties. On signing the contract, the buyer pays a deposit which is normally 10% of the agreed purchase price. This deposit is non-refundable unless specifically stated in the contract. If the buyer breaks the contract, he loses the deposit, and likewise, if you as the vendor default, you are legally obliged to return the deposit, plus compensation, which is usually equal to the sum of the deposit.
It is acceptable for both the vendor and buyer to ask for a copy of the contract translated into their mother tongue.
The contract covers a number of points including the following:
* Confirmation of the precise identity of the vendor and the buyer
* Precise description of the property
* Confirmation of the clear title of ownership
* Agreement for payment of deposit and terms if the contract is broken
* Proposed date of completion of the purchase.
Before the contract is signed, you as the vendor (or your lawyer) has to produce all the relevant paperwork relating to the property. This is for the buyer (or their lawyer) to complete the necessary searches to ensure there are no outstanding debts for example; rates, bank loans against the property. Since January 2009 you as the vendor must provide an Energy Certificate which will grade the property in much the same way as domestic appliances.
The Deed (Escritura) is the official document for the transfer of the property and is signed in the office of the Public Notary with the sellers and buyers lawyer both present.
The deed is read out aloud by the Notary and the relevant documentation relating to the vendors, the buyers, the property and purchase taxes have to be presented by the respective lawyers to the Notary, who checks to make sure the information is correct and current. After which the deed is then signed.
Should you decide to be present to sign yourselves and if you do not speak Portuguese, then you will need a translator, as the Notary will not let you sign the Deed if you do not understand the content.
Registration, Taxes and Legal Fees
Registration
After the Deed is signed the property will be registered in the name of the new owner at the local Land Registry Office (Conservatoria do Registo).
Taxes
You may be liable to Capital Gains Tax, which your lawyer will advise you about when you instruct them.
Notary fees
This is calculated according to the agreed selling price of the property and levied at between 1.5 percent and 2 percent.
Lawyer's fees
Normally between 1 and 2 percent of the selling price although some lawyers charge a set fee but we would recommend that all costs are requested when instructing the lawyer to act on your behalf.
