Here is an overview of the purchasing process, and now, step-by-step:

Get Property Or Land Plans

Once you have found the property or land you are interested in, it is useful to have a copy of any plans relating to the site. These may be architect’s detailed drawings, quite usual for new properties, and especially important if you are buying off-plan; or plans produced by the estate agents or builders/developers.

Having plans with measurements means you can calculate the real value of the property in relation to its dimensions and square metres, which may give you bargaining power over the price. Plans of the land (from the local Land Registry and Town Hall) may show up where main thoroughfares are located, water courses, boundaries, and other proposed developments. All these may have a bearing on the attractiveness of the site and the price at which it is being offered.

Off-plan purchases must be backed up by detailed plans, so that you know exactly what you are putting your money into. In many cases, you may have the option of modifying plans to suit your own design. Either way, make sure that when you finally agree on the design and dimensions, you have a copy of the final plans to refer to as building progresses.

Carrying Out Inspections And Surveys

As mentioned in the previous chapter, it is difficult to find official Portuguese valuers and surveyors, but it is still important that the intended property is inspected, and if possible a report produced. This again may provide you with added power with regards to the price, but even more crucial, it should show up any potential defects or long-term problems which may eat away at your reserves of cash. In Chapter 3 we suggested a number of tell-tale signs to look out for when inspecting a property. Whether it is you, or someone under your instruction, make sure you check:

• Outlying area – ground, access, boundaries, rights of way.
• Walls (internal as well as external) – cracks, damp patches, missing render.
• Floors, especially if wooden, for signs of rot or worm – a high percentage of houses in Portugal suffer from termite infestation.
• Roofs – slipped/missing tiles, slumping, exposed beams, holes – flat roofs always subject to leaks.
• Plumbing – does it all work?
• Wiring – is it up to date? Are there certificates relating to when it was installed?
• Is electricity supplied by mains or generator?
• Water system – mains or tank?
• Swimming pool and filter system.
• Pipes, guttering, drains. Are they in good repair?
• Heating and air-conditioning systems. How old, what state and are they functioning?

 

Although it is not always possible in practice, especially if there is a risk that a property may be snapped up, it really is a good idea to see houses in both winter and summer conditions. What might appear attractive on a dry, sunny day in Spring, come wet November or February may well have turned into a dripping, soggy mess, surrounded by quagmires. Yes, it does rain in Portugal, increasingly so, but it also gets tinder-dry in the summer too – both extremes can have devastating effects on properties.

Conveyancing

This is the term for the work undertaken by your solicitor in respect of your purchase. It involves all the legal formalities, checking of documents, dealing with the vendor’s lawyers, and overseeing the whole process. If you give your solicitor Power of Attorney (Procuração), all the stress of the Portuguese bureaucratic system can be alleviated, which is particularly comforting if you are trying to conduct the deal mostly from the UK.

As one resident said, ‘Most of the work is done by the lawyer so your own contact with Portuguese officials is minimal.’

One of the first things your solicitor will do is conduct searches at the local Land Registry to check the following details:

• That the owner is the person named on the registration document.
• That everything is in order with the title deeds.
• That the property as described in the paperwork is the same as the one you are expecting to buy, i.e. size, outbuildings, land, etc.
• Whether the property has been previously subject to a mortgage – to ensure that this will be paid off with the proceeds of the sale.
• Whether there are any other charges against the property – e.g. unpaid loans, which will require payment from the proceeds – this is vital, as, under Portuguese law, debts stay with a property and not the individual person.
• Any interest in the property from third parties.

 

This last point is one of the most important. Because of the way Portuguese inheritance laws have always worked, it has been common for property to be divided up in wills, with members of the family being left various parts of the house. In order for the property to then be sold, all members have to be in agreement. This is fine when everyone is available for comment! There have been cases where family members who have gone off to far-flung parts of the universe, have returned in subsequent years laying claims to bits of property.

Sometimes, though, even the most stringent of checks may not throw up these extraordinary cases – and it is with resale or older property that it happens. One couple I know, who bought some old property to renovate, were approached down the line by a chap from the village who wished to remove the roofing tiles from their barn, as that was his part of his inheritance. He did so, and promptly installed them on his own property down the hill!

It is also one of the reasons why so many older, rural properties in Portugal stand empty and unable to be sold; if family members cannot be contacted, it is unlikely a satisfactory sale can be reached, for fear of later comeback.

Your solicitor will also apply for the Habitation Certificate from the local Town Hall (Câmara). This proves that the building has been inspected by the local authorities and approved in respect of building regulations. Unless a property was built before 1951, the Deed of Transfer cannot be issued without this certificate. As there are various regulations governing different types and ages of property, this is work best done under good guidance. Your solicitor will also apply for the tax certificate relating to the property, which is held at the local Tax office. The Caderneta Predial contains information relating to the property, and its rateable value (see later).