Signing the Deed of Purchase and Sale is an important step in Portuguese real estate transactions. Purchasing a property is a highly legal matter, and as a consequence, there are formalities that you should follow. The same is true in Portugal, where buying a property is not merely completed by the mere agreement of the parties. Real estate investment remains a lucrative industry in Portugal, so you should know the different formalities of buying a property. This article discusses an essential document and signing the Deed of Purchase and Sale (Escritura de Compra e Venda) in Portugal.
What is the Deed of Purchase and Sale (Escritura de Compra e Venda)?
The Deed of Purchase and Sale, or Escritura de Compra e Venda, is a legal document that finalizes the transfer of ownership rights for a property in Portugal. It serves as proof of the agreement between the buyer and seller, outlining the terms and conditions of the transaction.
Required documents for the buyer
Make sure that you have the following documents before signing the Deed of Purchase and Sale to ensure that the sale goes through:
- Valid passport
- Photo ID
- NIF (Numero de Identificacao Fiscal or Tax Identification Number)
- Proof of payment of taxes (Stamp Duty, IMT, IMI)
- Land registration certificate
You can start signing the Deed of Purchase and Sale only with these documents.
Buying property in Portugal in 4 steps
Signing the Deed of Purchase and Sale is just one step in the process of buying property in Portugal. The four steps below explain more about the process of real estate transactions in Portugal.
Step 1: Obtain a NIF
The ability to purchase a property in Portugal is open to individuals of all nationalities. The sole requirement is to possess a valid tax number (NIF) in Portugal. Obtaining a NIF number is free and accessible to both residents and non-residents. Foreign citizens must only present a valid passport, while EU nationals can provide an identity card from any EU member state as sufficient documentation.
Step 2: Finding a property
Finding the right property is the second step in buying a property in Portugal. It involves thorough research, exploring various listings, and consulting with real estate agents to identify options that align with your preferences and budget. Consider location, property type, amenities, and proximity to essential services, ensuring it meets your long-term needs and retirement or investment goals.
Step 3: Conduct due diligence
No matter where you are from, real estate transactions should best undergo due diligence to ensure their legality. Due to the extensive documentation and bureaucratic procedures involved in acquiring real estate, individuals should seek assistance from professionals such as lawyers and licensed real estate agents.
Step 4: Signing the Deed of Purchase and Sale
The formal requirement is to sign the Deed of Purchase and Sale before a notary or a public official, ensuring its authenticity and legality. Once the Deed of Purchase and Sale is signed, it establishes the buyer as the rightful owner of the property and solidifies their rights and responsibilities as in the agreement. Remember to register it with the land registry office to make it even more binding.
Buying property in Portugal requires following specific formalities and procedures to ensure a legally binding transaction. The Deed of Purchase and Sale, or Escritura de Compra e Venda, serves as the document that finalizes the transfer of ownership rights. Buyers must have the necessary documents, conduct due diligence with professional assistance, and sign the deed in front of a notary or public official. Registering the deed with the land registry office further solidifies the transaction’s legality.
Frequently Asked Questions (FAQs)
What is a deed in Portugal?
In Portugal, a deed refers to a legal document known as the Escritura. It is a formal agreement signed before a notary or public official that establishes the transfer of ownership rights for property and outlines the terms and conditions of the transaction.
How long does it take to close a house in Portugal?
The time it takes to close on a house can vary depending on various factors, including the complexity of the transaction, the due diligence process, and any potential legal requirements. On average, the process can take between one to three months, but it’s important to note that this timeline is approximate and differs in individual cases.
What are the property laws in Portugal?
Property laws in Portugal allow foreigners to acquire real estate, whether for residency or investment purposes. It is advisable to consult legal professionals or relevant authorities for comprehensive and up-to-date information regarding specific property laws in Portugal.