Essential Guide for first time Home Buyers

Essential Guide for first time Home Buyers

Step 1


In a first phase I suggest that we meet in person or if you are living abroad, we can meet via Zoom/Teams.... You can describe the type of Property you are looking for in relation to the location, number of rooms, characteristics and singularities that you have in mind for your goals and circumstances. With this information I will be able to help you find the right property here in the Western Algarve. 

At this stage we will also discuss your budget and if you think about making your purchase using credit, now is the time to put you in touch with a quality credit broker. Your credit intermediary will contact several banks in order to find the one with the best conditions for your circumstances. And if you for some reason do not yet have an account in Portugal, it will help you open an account with a Portuguese banking institution.  


Through excellent relationships developed over several years with other Consultants of various Real Estate Agencies and good digital tools / efficient search engines, we will have access to virtually all the Properties currently on offer in the real estate market of the Western Algarve.


Step 2 - Pre-selection and visits

We will be happy to help you choose the Properties that will make the most sense for you to know and you will have access to a market study to understand the values per m2 of the area in question so that you realize how the Property that interests you most is positioned in the current market. This detail can help prevent a purchase above market value. In addition to this detail that can save you a lot of money, there are other advantages to having a Buyer Agent by your side to defend your interests. It will be a pleasure to exchange views with you on this and other topics. Once the property that makes the most sense for you is identified, it is time to make a Purchase Proposal informing the terms of your offer in relation to the total value of the proposal, amount to be paid as a sign with the conclusion of the Promise Agreement, terms of the business, form of payment, origin of financial resources (equity or financing - this information is important for the seller, as it will affect the timing of the business and in some cases may even make a difference in your favor in the final value of the business) and other conditions that you may have.


Step 3 - Legal Representation

Choose an Attorney or Solicitor of your choice to support you or even represent you through a Power of Attorney throughout the process. We strongly advise all clients to turn to a Lawyer or Solicitor. This fundamental step will not only ensure security throughout the process, but will also ensure an independent and impartial analysis of all the documentation of the Property, ensuring that it meets all the legal prerequisites and that there are no hidden mortgages, judicial attachments, debts to the condominium or any other unforeseeable liabilities. And of course, last but not least, this step will ensure a correct verification that the Seller has in fact full legitimacy to sell the property.  


Step 4 - Tax representation

If you are a first-time buyer in Portugal, your Lawyer/Solicitor will request a Tax Number from the Finance Office on your behalf. This is a necessary step so that you can pay the taxes on the purchase of the property in the Final Deed. 


Step 5 - Property inspection (if applicable/required)

At this stage and depending on the circumstances, it will probably make sense for an engineer to check the functionality of all equipment, the state of the building structures, and other important details. Or have a team of contractors to budget for any desired or necessary work that needs to be done. This step is relevant, before making a legal commitment to purchase the property.    


Step 6 - Signing of Promissory Contract of Purchase and Sale (CPCV) between Buyer and Seller

This binding written agreement will be drafted by your attorney and will describe all terms negotiated and agreed with the Seller regarding the price, term of the deal, form of payment, deadline/date of completion of the deal and any other agreed conditions. The agreed payment initiation amount will be paid with the signature of both seller/buyer for the agreement to be made official. Usually via bank transfer. This step is the first legal and binding step towards the purchase of the property. As a general rule, the time between the signing of a CPCV and the Deed is 30 to 60 days. If the Buyer uses Credit to finance the purchase, this interval may extend up to 90 days or more, depending on the Banking Institution.


Step 7 - Deed of Purchase and Sale

To avoid unpleasant surprises, it is advisable to carry out a last inspection / visit to the Property on the eve of the deed or if possible immediately before going to the Notary. (Especially if the Property is sold furnished or has been inhabited until the sale and the furniture has been removed leaving now the house "naked" to be able to identify any problem that has not been possible to identify previously) Up to 2 days (48h) before the Final Deed, your Lawyer or Solicitor will request the settlement of the Transmission Tax and Stamp Duty guides of the purchase with the payment data to the Finances so that these taxes are paid before the Final Deed. (The Notary will request proof of payment before performing the Act or in some cases, this payment may even be made immediately before the ECV at the premises of the Notary by Multibanco) In the Deed Act, your Attorney can represent you through a power of attorney and can sign the document on your behalf, pay all the expenses of the Deed, taxes and the remainder of the agreed sale price. The payment of the Property is usually made with Bank Check (Pre-issued with guarantee of funds) The check is delivered to the seller in the Notary, in the Deed Act.The Property will then be registered in his name in the Land Registry. (It may take a few weeks before registration becomes available on your behalf)   


Step 8 - Ownership Transfers

It is time to communicate to the suppliers of Water, Electricity and Gas that you are the new Owner of the Property. You will need to present your identification document and a copy of the deed along with the last invoice from the former owner and it will be a simple and easy procedure.We can facilitate this process through one of our partners who can give all the support for your comfort. 

Also in the Finance Department you will have to communicate to the Tax Authority that you are the new owner of the property and change your tax address. The following documents will be requested at the Finance Office: Identification document, taxpayer number, copy of the Deed, Urban Property Booklet and Permanent Certificate.


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