So you’ve made the decision to sell your home in Portugal! We would love to help guide you through the process, from start to finish. Get in touch with us here. In the meantime, please find below a handy guide of the documents that you will need to have to sell your property.
Documents Required:
Certidão de Registo Predial (Land registry certificate)
This document is valid for 6 months and needs to be updated prior to a sale. It shows who the legal owner of the property is and will show any mortgages, debts or liens. The registo predial will also show the construction area, plot size and other important details of your property. This document is obtained from the Conservatoria do Registo Predial.
Caderneta Predial (Tax office registration)
This document contains the important financial registration of the property and shows the taxable value from which we can calculate the annual property rates payable to the local council, as well as the construction and plot areas, address and ownership. This document is issued by the local tax department.
Licença de Habitação ou Utilização (Habitation or usage license)
The habitation license is key when selling a property. It confirms that the property was built in accordance with the plans approved by the council. For habitation it is called a Licença de Habitação, for all other purposes it is called Licença de Utilização. You can request the habitation license from the local Câmara Municipal (town hall).
Ficha técnica de habitação (Technical file)
Since 2004 it is required to present the ficha técnica at the deed, a detailed document on the property’s construction. It covers the materials used, suppliers and lists the technical data of the construction process. This document is provided by the builder.
Certificado Energético (Energy Certificate)
All properties must have an energy certificate to advertise and sell. This document is prepared by a certified engineer and is valid for 10 years. The certificate gives the property an energy rating and outlines the property’s energy components, their efficiency and identifies solutions to reduce energy consumption. It will also stipulate possible tax benefits and options for finance.
Numero de Contribuinte (Fiscal tax number)
To buy and sell property in Portugal, you will need to have a tax number. This can be arranged simply at the local Finanças office (local tax office). Your solicitor can also request one on your behalf.
Once you have successfully marketed your property and agreed on a price, the lawyers take over and do their due diligence. If everything checks out, we move on to the final stages of selling your home:
Reservation (optional)
As the due diligence process can take some time, it can be useful to sign a reservation agreement with the vendors, typically a €5,000 reservation, which is held in your lawyer’s client account. This agreement takes the property off the market and the vendor should cease viewings. This shows intent to the vendor and gives you, the buyer, a little more security that the property won’t be sold from under your nose. However, the deal is not secured until the all-important next step, the ‘Contrato Promessa de Compra e Venda’ or ‘CPCV’, known in English as the ‘Promissory Contract’.
Promissory Contract of Sale and Purchase
Generally, we aim to sign the CPCV within 14 days of signing the reservation agreement. In this time the lawyers will have time to do the necessary due diligence, checking for any debts, liens, or legal issues with the property. It is important to ensure that all the required licenses are in place and that the property matches the plans registered at the town hall.
Upon signing the promissory contract, the buyers will pay a deposit of typically 10% to 20% of the purchase price, minus the reservation amount. The size of the deposit generally reflects the time between signing the promissory contract and signing the deed. Longer period means higher deposit.
The CPCV is a legally binding contract, in which the following key details of the deal are stipulated:
This contract is not mandatory, though it is used in most real estate transactions in Portugal. We at ten Hoopen Realty strongly advise you not to skip this step. Upon signing the CPCV, the buyer commits to purchasing the property and the seller commits to sell the property to the buyer. If the buyers were to pull out of the deal, they would lose their deposit. If the vendors pull out of the deal, they will have to pay back the deposit, plus the same percentage on top.
This contract can be signed personally, or your lawyer can sign on your behalf with a power of attorney or even acting as ‘business manager’.
Public Deed (Escritura)
The final and most exciting step is signing the deeds at a Portuguese notary and handing over the keys to the new owners. As you would expect, this step is a highly regulated process in Portugal and ensures once again that there are no legal issues with the property. You will receive a copy of the deeds and you’re all set to start enjoying the next stage of your life, whether in Portugal or elsewhere.
If you have any more questions or want to get started on selling home, get in touch with us today on +351 963 766 261 or email sales@tenhoopenrealty.com