RESERVING YOUR PROPERTY (RESERVATION "OPTION" CONTRACT)

Once you have found a property you wish to buy, it is essential for you to sign a preliminary reservation agreement with the seller, and pay a reservation deposit of between 3.000 € and 6.000 €. This agreement is similar to the “option” contract in the U.K. and Ireland, and is proof that the property has been taken off the market, and you are in a position to buy it.

THE SEARCHING PROCESS

Once the property has been reserved in your name with the preliminary reservation agreement, we usually have between 15 to 30 days to gather information on the property regarding the land register and legal issues. This is necessary in order to verify whether the title deeds for the property are satisfactory, and whether the person selling the property is authorised to transfer their ownership. We also carry out an exhaustive check in order to guarantee that the property is also free from any pending charges, mortgages or debts. If there are any pending charges on the property, we will take the appropriate measures to ensure that they are completely settled before the legal ownership of the property is transferred to the buyer.

If you are buying a plot of land, a survey of the land can be carried out in order to obtain its exact measurements and to identify its borders. This study will include details on whether the land has been classed as buildable, on its access points and on its surface area. Likewise, it will provide information on the different building possibilities and on the buildable area, including a detailed plan that will form part of your final title deed.

If we are dealing with properties in a building phase, we will ensure that the developer meets all appropriate legal requirements: building licence (with a detailed check made in the architectural department of the adequate municipality) and a land survey (making sure that the work is taking place on regulated land).

Should our checks unveil any legal obstacles which affect the buying process, our firm will advise you in writing not to continue with the process, and will ensure that the initial deposit you paid is returned in full by the selling party.

In all cases, and as part of our service, we will run checks on the reputation and solvency of the builders/developers, obtaining references that the property will be built and handed over in accordance to the terms and conditions stated.

CONTRATO DE COMPRA E VENDA (Exchange of Purchase Contracts)

Once the checks on the property have been made and we can guarantee that the legal situation of the property is sufficient for the sale to take place, you can sign the Purchase Contract, known as “contrato de compra e venda”.

The “contrato de compra e venda” is an important document containing information on the buyer and the seller, the description of the property, the price of the sale, the method of payment, the date the contract is formalised, the date you can take possession of the property, etc.

Once both parties have signed the “contrato de compra e venda” and the deposit has been paid, the contract becomes a legally binding document. The amount payable as deposit at this stage and the structure of payments until completion varies, depending on the developer.

ESCRITURA (SIGNING THE TITTLE DEED)

The property sale process is finalised before a Notary (OfÍcio de Notas o Cartorio), with the buyer and seller signing the Deed of Sale. The signature of the Tabeliâo (the Oficio de Notas’ Official). The Notary’s duty consists in identifying the buyer and the seller, and ensuring that all legal requirements have been met, and that the amount due to be paid has been settled.

If you are unavailable to be present for the signing of the deeds, we can take care of it by means of a power of attorney, which will permit us to carry out all necessary procedures in your name. In fact, and for our client’s peace of mind, it is common practice in our company to have a valid power of attorney at the beginning of all buying and/or selling operations.

Immediately after the deeds have been signed, the buyer is handed the property keys, and can take possession of the property.

FINAL TITLE DEEDS AND PROPERTY REGISTRATION

The property registration procedure entails the payment of all the taxes applicable to the property and the obtention of the final Register Stamp (Cartorio) for the Title Deeds, which guarantees the transfer of the property. This procedure is an important step, and takes place just after you have taken possession of your property.

COLLECTING DOCUMENTS

Once the Property Register (at the Cartorio) has returned the Title Deeds (Escritura), we will arrange the best time for you to collect them from our offices, together with the rest of the documents that you will need to keep.