BUYING PROCESS

 Letter of Intent

After you have found your property and negotiated your purchase, Sardo will prepare the ‘Letter of Intent’ to be signed. 

This document outlines the terms and conditions of the agreement between you and the seller. The LOI is then sent to the lawyers representing both parties. Once your lawyer receives all of the property documentation they will then perform due diligence and prepare the contract. We will also prepare an inventory list to send to the lawyers and attach to the contract.

Promissory Contract

Following the completion of the due diligence on the property, the Promissory Contract, “Contrato Promessa de Compra e Venda”, is prepared, which requires signature from both parties.

Deposit Payment

Following the signing of this contract, a 10% deposit is made to the seller, this is usually facilitated through the lawyers client account.

 Final Deed

The transfer of ownership to the buyer, known as the Final Deed or “Escritura” is signed at the notary ́s office on an agreed date. In the event that one of the parties is unable to be present, power of attorney may be given to their legal representative.

Transaction Completion

The transaction is finalized once the payment of the balance of the purchase price and associated taxes are made.

Land Registry

For the final step, your lawyer will register you as the new owner in the Land Registry, “Registo Predial”, and generally also perform the necessary alterations to the utility bills.

BUYING PROCESS

IF THE PROPERTY IS HELD IN A CORPORATE STRUCTURE

Legal Checks

Your lawyer will proceed with the normal legal searches on the property and will also carry out the due diligence on the corporate structure. These measures will include the confirmation of the liabilities, fees, warranties, representation, history and the legal procedures of the company.

Agreement & Deposit

The next step entails the preparation of a Share Purchase Agreement by your lawyer, which is then signed by both Parties. At this point all the conditions of the transaction are secured, normally with a 10% deposit being made to the seller, through the lawyer’s client’s accounts.

Jurisdiction Choice

This transaction occurs under the jurisdiction of the company’s domicile, although it can also take place under Portuguese jurisdiction or another one connected with the parties. The formalities applicable to the transfer of the shares or rights in the jurisdiction of the company’s domicile are this way safeguarded.

Purchase Price Transfer

The buying process is finalised when both parties fulfil the terms formerly described in the Share Purchase Agreement and once you have transferred the balance of the purchase price to the seller, also generally through the lawyers.

Share Ownership Transfer

During the final step, the respective management company will transfer the share ownership from seller to buyer. This process is generally fast and simple and it may be carried out in English.

BUYING COSTS PRIVATELY OWNED

Legal Expenses 1-2% of purchase price
IMT
VARIABLE UP TO 6.5%

FOR RESIDENTIAL PROPERTIES WITH A VALUE OF OVER € 1M

7.5%

NOTARY & REGISTRATION FEES

USUALLY BETWEEN

€1,000  – €2,000

STAMP DUTY
% OF THE PURCHASE PRICE 0.8%

BUYING COSTS CORPORATE OWNERSHIP

Legal Expenses 1-2% of purchase price

IMT

NOT APPLICABLE IN A CORPORATE OWNERSHIP

NOTARY & REGISTRATION FEES

NOT APPLICABLE IN A CORPORATE OWNERSHIP

STAMP DUTY

NOT APPLICABLE IN A CORPORATE OWNERSHIP

MANAGEMENT COMPANY FEES

FEES VARY GREATLY BETWEEN MANAGEMENT COMPANIES