It is highly recommended that you use a Portuguese property lawyer to assist with the purchase of a property in Portugal.
Most lawyers in the Algarve speak English and their fees are generally around 1 to 1.5% of the value of the property.
Once a price has been agreed between you and the seller of the property, you will be in a position to sign a ‘Promissory Contract’.At this stage, a deposit of between 10-20% is paid (this may be more if agreed by both parties).
The Promissory Contract is a binding document signed by both parties, which states all of the terms & conditions agreed, such as the price and completion date of the purchase.
If after signing the promissory contract, you were to default on the contract, the deposit will remain with the seller.If however, the seller pulls out, they will have to refund double the amount of the deposit paid.
In addition to the purchase price of your property it is advisable to allow between 5% and 9% of the purchase price to cover the costs involved. This will cover your IMT (Imposto Municipal sobre Transmissõe), Notary & Registration fees as well as Lawyer's fees.
