INFORMATION ON BUYING PROPERTY IN THE ALGARVE

The Buying Process: Step-by-step Guidance

Step 1: Finding a Property
Step 2: Legal Requirements
Step 3: Promissory Contract
Step 4: Balance to be paid
Step 5: Moving in

BUYING PHILOSOPHY

Our Aims are to:
Offer an exceptional, creative and comprehensive service
Provide you with a wide choice of properties
Give you confidence and guidance through the Buying Process
Provide staff who are well-trained, competent and knowledgeable
Minimise the stress of finding a property
Search for your dream property with enthusiasm
Dedicate our expertise to all clients regardless of property price range
Develop positive, interpersonal relationships

CHOOSING AN ESTATE AGENT

Estate Agents must:
Be Licensed
Have a clearly written Buying Process
Exhibit professional competencies and detailed knowledge of properties
Provide realistic valuations
Show excellent interpersonal skills necessary for buying property
Instil confidence through positive relationships with Buyers and Sellers
Provide regular step-by-step feedback of the Buying Process
Negotiate effectively on your behalf

You will need to:
Select a reputable Licensed Estate Agency Company
Meet the Sales Consultant
Review their Buying Process
Assess their competencies to search for properties
Evaluate their Contract
Be satisfied that they can fulfil your expectations

Algarve Idyllic will:
Provide you with a written Buying Process
Furnish you with comprehensive property details
Negotiate a realistic price on your behalf
Maintain contact and provide continuous support
Schedule and supervise viewings
Complete the purchase
Provide after-sales service

Guidance through the Buying Process:
Step-by-step guidance is a fundamental element of our Buying Process

Continuous support provides re-assurance and confidence
Stress-reducing, flexible, personalised service characterises our work
On-the-spot, intimate market knowledge provides crucial buying information

Minimise Stress through Flexible Packages:
Algarve Idyllic staff will guide you and help minimise the stress usually associated with finding and buying property. We provide unique, personalised, flexible Packages to meet your individual needs. For example, we can initiate the Buying Process even if you cannot meet our consultants in Portugal. The assessment of your individual needs and paperwork can be completed easily on-line or over the phone. We will liaise with any other professional agencies acting on your behalf.

BUYING STRATEGY

Distinctive In-House Style
We believe we have a distinctive ‘can do’, refreshing approach to searching for your dream property.

Algarve Specific
Algarve Idyllic has the significant advantage of concentrating all its expertise and resources in the property market in the Algarve region. Our focus is not diluted through involvement with properties in other countries.

Network
We have teamed up with leading industry partners to help find your property. If you require professional advice, we have on hand lawyers, accountants, mortgage brokers, banks, currency exchange and money transfer services.

For property development projects, refurbishments and renovations, we can introduce you to highly recommended architects, building companies and interior designers.

Contact Algarve Idyllic
If you would like us to find you a property or for any further information, contact us here.

Reasons to buy in Portugal
Stability:
Portugal offers a stable market in which to feel safe in your investment. It has a consistent governmental structure and is governed by civil law.

Mortgage Rates:
The mortgage rates are favourable, therefore ,there are no surprises when taking out a Portuguese mortgage.

Cost of Living:
If you intend to spend extended periods of time in your Portuguese property, you can expect your money to go further due to the lower cost of living.

The Weather:
An annual average of 3000 hours of sunshine means that you can enjoy more sun than Florida!

Property Standards:
Generally, the standard of building and size of properties in Portugal exceed that of neighbouring countries.

Golf:
With 28 golf courses to choose from throughout the Algarve, you can enjoy a round at a world famous course at any time of the year.

Easy Access:
With many low-cost airlines and short journey times, Portugal is within easy reach for weekend breaks or longer stays, giving you more play time than travel time!

Rental Market:
With villa holidays becoming increasingly popular, the Algarve enjoys a buoyant rental market, helping your property provide an additional source of income.

THE BUYING PROCESS: Step-by-step Guidance

STEP 1: FINDING A PROPERTY

Consider the following when making your wish list:
Size
Budget
Location
Lifestyle
Things you like
Things you don’t like
Browse our website to select properties that match your requirements, or contact us for more detailed advice or information regarding any of our featured properties. We will then arrange your selected property viewings and help you plan your viewing trip. You can expect to view several properties in one day, depending upon the location and we can also organise a reputable English-speaking lawyer for you, should you wish to proceed with a purchase.

STEP 2: LEGAL REQUIREMENTS

Your appointed lawyer will handle all the legal requirements for your property purchase, but we have included here for your information legal requirements for property purchase in Portugal.
For a property to be placed on the market for sale the following documents are required:

Certidão de Teor: Land Registration
This shows that the vendor has the legal right to sell the property, any loans or mortgages outstanding and the details of the property, ie construction/㎡, plot area/㎡, type, location and boundaries.

Caderneta Predial: Financial Registration
This should correspond to the Certidao de Teor and also gives the rateable value (valor patrimonial); this comes from the Tax Office (Finanças).

Caderneta Rústica:
This is the same as the Caderneta Predial but only applies to rural properties.

Licença da Habitação/Utilização: Habitation Licence
This shows that the property has been constructed in accordance with the plans submitted to the Council (Câmara), though this does not apply to houses built prior to 1951.

Ficha Técnica: Technical Licence
Properties constructed after 30/03/04 must have a Ficha Technica, which gives details of the materials used and the type of construction.

STEP 3: PROMISSORY CONTRACT

Your appointed lawyer will draft a Promissory Contract which will state:
The identification of the buyer and the seller
The identification of the property
That the buyer agrees to buy and the seller agrees to sell
The deposit, usually between 10-20% of the purchase price
The timescale of the purchase
Other information, eg fixtures and fittings, permissions for the pool
Once the contract is signed, it is binding on both parties. If the seller withdraws, then the seller pays double the amount of the deposit to the buyer.

STEP 4: BALANCE TO BE PAID

You will be required to obtain a Fiscal Number from the local Tax Office and before the purchase is completed, you are required to pay the IMT (Government Tax) at the Tax Office before the final deeds are signed. This is all organised by the Lawyer. The amount of IMT varies in comparison to the price of the property, eg

0€ - 83,500€ = 0%
83,501€ - 114,800€ = 2%
114,800€ - 156,500€ = 5%
156,501€ - 260,900€ = 7%

The final stage is completed at the Notary Office, the Escritura de Compra e Venda is recorded in the Notary’s official records and the final payment is given to the seller. You will receive a copy of this, which is the equivalent to the Title Deed.

You can expect Legal fees of 1.5-2% of the purchase price, Notary and Registration fees of 1.5-3%, depending on your circumstances. Fees are higher when you have a mortgage on a property.

STEP 5: MOVING IN

Your lawyer organises the connection of utilities to your property, ie phone line, electricity etc, making the transition to Portuguese living as painless as possible.

Buying Property Owned By A Company
Buying property owned by a company is a simple process regarding the sale and transfer of shares, which a lawyer will explain in detail. It is also possible for you to set up your own company to purchase your property. Your lawyer will advise you on the benefits, as well as your legal obligations. This must not be confused with offshore companies, which have further considerations that must be taken into account.