Promissory Contract.
Once all documents are available (and normally these documents have already been obtained from the seller when the property was put on the market and listed in our books) both parties will sign a Promissory Contract. This is a legally binding contract between sellers and buyers and signed before a Notary. It is prepared by a lawyer and all agreed items will be specified clearly in the document to avoid future problems. It will include the following:
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• The identification of the parties, and their representatives (if applicable).
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• The identification of the property, its registration number, description, details of its Construction Licence and confirmation that there is clear title.
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• The price agreed for the sale, including the form of payment.
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• The amount of the deposit to be paid before the Final Deed is signed.
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• The deadline for execution of the Final Deed (Escritura) and any conditions that the parties must meet before then.
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• Usage of the property by the parties before the Final Deed is signed and whether the buyer may build on the property in the interim period.
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• Whether interest is payable if there are any delays to the completion of the sale and the conditions in the event of default on the contract.
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Upon execution of the Promissory Contract the deposit cheque is passed on to the seller and it will be presented for payment. At this stage, should the buyer default on the Contract, the deposit monies will normally remain with the seller, but if the seller defaults, he is required to refund the buyer twice the amount of the deposit.
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To buy a property in Portugal you don't need to learn portuguese, but it maybe useful to kown the name of the important documents and taxes.
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Costs of Buying a Property in Portugal.
Before buying anything you should know what is the total amount that you'll spend.
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