With exceptional market knowledge, excellent contacts and the ability to provide intuitive advice to its clients, the ONE Select Properties team will work determinately to find your ideal home or deliver on your intended investment. Our 30+ years of experience in the local real estate market has promised our clients a constantly updated view on properties, providing, buyers and sellers, with an exclusive “first look” at what is available.
Property Visits & The Negotiation Process
The ONE Select Properties team will work with you in order to find the property that matches all your requests. Once the right property is found, your representing agent will act as a mediator in the negotiation process. After a mutual value is agreed, a proposal is outlined by the vendor’s representative.
As price and timing for completion is agreed upon, both parties will usually appoint a local lawyer and formal property documentation will be sent to the buyer, in order for the representing lawyer to perform due diligence and prepare the buying contract.
Inside tip: Making an offer does not bind you legally. There is no legal obligation until contracts are exchanged.
The General Agreement Terms When Buying a Privately Owned Property
Once the price has been negotiated and agreed, alongside the invetory to be included in the purchase, your ONE Select Properties agent will draw up a memorandum of sale, putting your solicitor and the seller’s solicitor in contact . At this point, you may wish to instruct a survey to the property. We are happy to make recommendations.
When your solicitor has received the contract and supporting documentation, he or she will apply for local authority searches and raise any enquiries they may have.
Signing of The Promissory Contract
If both parties and lawyers and in agreement, the buyer will have to acquire a Portuguese Tax Number, which can be done with the aid of the appointed lawyer. Once drafting and agreeing upon the terms and conditions of the buying contract, the promissory contract can be signed.
This is signed by the buyer and the vendor, or their representatives, which is also normally accompanied by a 10% deposit based on the total purchase value agreed. At this stage a deadline is usually set for the signing date of the final deed. If either party defaults in the completion of the final deed, a compensation is then in place with this deposit.
Signing of The Final Deed (Escritura)
Before signing the final deed, which usually takes place in a public notary, the buyer must pay IMT (Property Transfer Tax). Both parties can either be present or give power of attorney to their legal representative. Upon signature of the final deed the buyer will pay the remaining property purchase balance, alongside notary and registration fees.
Property Ownership Officiation
With the purchase and deed complete, the representing lawyer will help the buyer complete their registry in the Land Registry, as well as changing all utility bills to the new owner’s name.
The Steps To Buying a Corporately Owned Property in Portugal
The initial process of property visits, negotiation, price and time completion agreement is exactly the same as when opting for private ownership, all the way up to the sharing of company and property documentation.
Structure Due Diligence
When the required documentation is shared, your appointed lawyer will preform the essential due diligence, on both the history and the legal procedures of the structure in question. This will allow for the buyer and the lawyer to understand the exact status of the company to be acquired, in regards to matters like, maintenance fees practiced, ongoing costs, warranties, company legal representation as well as present procedures followed.
Signing of The Share Purchase Agreement
Much like signing a promissory contract, when dealing with the purchase process of a corporately owned property, a Share Purchase Agreement (SPA) is drafted and agreed upon by both parties. Once a consensus is reached, both in regards to the property value and the terms and conditions of the agreement, a 10% deposit is transferred from the buyer to the vendor. At this stage a deadline is usually set for the signing date of the SPA. If either party defaults in the completion of the final deed, a compensation is then in place with this deposit.
Payment of The Remaining Purchase Balance
The complete transfer of company ownership, takes place once the remaining purchase balance is payed, and this can either be done under the company’s domicile or under Portuguese jurisdiction. Upon agreement of the final terms and conditions of the SPA, the remaining balance can either be transferred to the buyer’s lawyer’s account or via any other agreed form of payment, to the vendor.
Company Ownership Officiation
To complete the new company proprietorship, the appointed company management team will transfer the shares of the ownership to the new UBO (Ultimate Beneficial Owner). Any other remaining tasks will be organised by the management company.