Selling Property In Portugal
Once the decision to sell is made and you have chosen Laws Property Portugal Lda to market your property, it is necessary to contact your legal representative to inform them of your decision and to let them know the details of the selling agent. A Listings Agreement will be given or sent to the vendor to complete. This can be done with the help of the sales representative.
Once the details of the sale are agreed, Laws Property Portugal will draw up a Property Sale Mediation Contract for signature by both parties. This is a legal agreement allowing us to market / sell the property at a sales commission of only 2.5%.+ IVA
Preparatory Work
You may already have a lawyer, as it would have been necessary to engage the services of one at the time of purchase. You, or your lawyer, will need to have the documents listed below available. A copy of each must be sent electronically to Laws Property Portugal Lda – this is a requirement of Portuguese law.
- Certidão de Registo Predial (Land Registry Certificate)
- Cardeneta Predial (Tax Card/Certificate)
- Licença de Utilização (Habitation Licence)
- Certificação Energético – compulsory for all properties being sold since 2013 (Energy Certificate)
- Passports / Identity Cards and Fiscal Numbers
- Ficha Técnica for all properties built after 2004
- Inventory of furniture / items included in the sale
Once a buyer has been found and the price agreed, again inform your lawyer. Thereafter, Laws Property Portugal Lda will liaise between both lawyers to ensure a smooth transition of the sale/purchase process. In Portugal, it is the buyer’s lawyer who will be doing most of the work. The lawyers of the vendor and buyer will be in direct contact throughout the process. Any preparation work that can be done in advance (making sure that the documents listed above are all in date) will help to speed up the sale process. Your lawyer will also translate documents and contracts for clear understanding.
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Promissory Contract & Deed
The buyer’s lawyer will carry out their due diligence and draw up the promissory contact. This contract identifies the vendors and buyers, describes the property, outlines the terms of the purchase and the timeframe for completion of the sale. The vendor’s lawyer will have provided the buyer’s lawyer with all the necessary property documentation. The promissory contract is legally binding. It is usual to pay a sum in the region of 10% at this stage (or a greater % may have been agreed) and this money is non-refundable, should the sale / purchase not continue.
Usually within 30-60 days after signing the promissory contract, the final deed is signed, and the balance of funds paid. This period may differ but will have been agreed by both parties.
This process will involve the vendor, buyer, the lawyers and the notary. If the lawyers have powers of attorney, it will not be necessary for either the vendor or the buyer to be present. It is the notary that oversees and guides the whole process. The property will then have been registered in the name of the new owner with the Land Registry department and the process is complete.
Costs
The buyer pays most of the costs that are involved in the transfer of ownership, and this includes paying the notary’ s fees.
The vendor is responsible for their own legal fees and any fees for producing / updating documentation and possible capital gains tax on any profit made on the sale. It is important to seek professional advice on such matters.
All the information provided here is a guide and believed to be factually correct. Laws in Portugal constantly change, and we strongly advise that professional advice is sought – both legal and financial.
For more information about Buying Property in Portugal, please visit Buying in Portugal
For more information about the bureaucracy in Portugal, please read: Top 5 Tips for Negotiating Bureaucracy in Portugal