The Process of Buying Property in Portugal

In this section, we guide you, step by step, through the different stages and the process of buying property in Portugal.

From arranging your property finance right through to moving abroad this step by step guide gives a brief outline of the different stages in the process of buying property in Portugal.

1. Arrange Your Portugal Property Finance – Talk to the professionals.

2. Portugal Property Search – If you decide to use a real estate agent, always use a government licensed one.

3. When to Sell Your Property in Portugal?

4. Choose a Solicitor – Never buy without a lawyer.

5. Make an Offer

6. Arrange for a Property Survey – Have a full survey carried out.

7. Exchange Contracts – All the paperwork must in order.

8. Complete and Move in

1. Arrange Your Property Finance

Before you start looking to purchase real estate you should work out your property price range. The best way to do this is to apply for a mortgage and receive pre-approval in principle. If you are selling your existing property, you and your lender will want to know what it is worth in the current market. Ask a real estate agent for a valuation. You can search through our members to find a real estate agent near you in the Algarve.

2. Portugal Property Search

Before you begin your Portugal property search you should have a good idea of what you are looking for. Our buyer’s wish list will help you to identify and prioritize the features you want in your new home abroad. Search our database for properties for sale in Portugal that meet your requirements. Arrange to view many properties even if some do not exactly match your requirements. You will learn from each viewing and get a better understanding of what you like. For tips on viewing properties in Portugal check out our guides.

3. When to Sell Your Property in Portugal?

If you are selling your existing Portuguese home, the buying and selling should take place around the same time. However, the area you live in could influence when you place your property on the market. If there is strong demand for properties in your area and you are confident that you will have little trouble in finding a buyer, you may want to buy before you sell. Alternatively, if similar properties in your area have proved difficult to sell, you may be wise to start the selling process before you buy. For tips on selling your property in Portugal check out our selling guides.

4. Choose a Solicitor

The legal process of buying or selling a property is called conveyancing. It is a complicated process and unless you have a legal background and plenty of time on your hands you will need to appoint a solicitor. You can search our business directory for a solicitor in the Algarve, Portugal . For more information on conveyancing check out our legal guide.

5. Make an Offer

When you find your dream home in Portugal you will need to act quickly by making an offer to the seller’s estate agent. In the current property market the seller may receive a number of offers, and if your initial offer is refused you will have to consider whether you want to make a higher offer. Make sure to mention any points in your favour, for example your ability to move quickly.

All offers should be made “subject to contract and satisfactory survey”. If the offer is accepted you will be asked for a booking deposit. You cannot afford to sit back at this stage as the sale does not become legally binding until contracts are exchanged, and there is nothing to stop the seller from accepting a higher offer prior to the exchange of contracts. Ask the seller to withdraw the property from the market and instruct your solicitor to proceed with the conveyancing.

6. Arrange For a Property Survey

Mortgage lenders will insist on a valuation of the property before offering you a mortgage. However, you or your lender may want a more detailed survey carried out particularly if is an older property. For more information see our survey guide.

7. Exchange Contracts

The exchange of contracts happens when the solicitors for both parties send a copy of the signed contract to each other. When the exchange of contracts takes place both parties have a legal commitment to complete the sale. At this stage you will have to pay the seller a non-refundable deposit of 10% of the purchase price.

Before you exchange contracts you should be satisfied that:

All legal searches and inquiries have been completed
The surveyors report has been completed
The mortgage offer has been received in writing
The terms and completion date have been agreed
You have read and understood the terms

8. Complete and Move to Portugal

On the completion date specified in the contract the balance of the purchase price must be paid to the seller’s solicitor. You may then collect the keys and move into your new home. For more information and tips see our moving guides.

Disclaimer

The information provided on the site is indicative only and does not form part of any contract. Any advice should be seeked after qualified legal professionals. Currency equivalents are indicative only and should be checked with your bank.