During the current boom of luxury property in the spectacular destination of the Algarve’s Golden Triangle, now is an exciting time to be thinking of making an investment. With the numbers of tourists and expats heading to Portugal growing, it's tempting to buy one of the first properties you see just to ensure you reserve your piece of the pie. But unless you're familiar with the area, customs and regulations, it's important to seek local expert advice before making any decision. At Golden Triangle Real Estate, we've done it all ourselves before - so we can help you understand the legal steps involved and get the purchasing process started.
As with any property and investment decision you make, it is wise to seek out the assistance of experts. At Golden Triangle Real Estate we don’t just know the area inside and out; we don’t just have all the facts and figures and sales know-how at our fingertips. We have all that, plus our own vast experience of buying and selling multiple properties in the area – before we were ever Real Estate agents. So we understand the excitement and the trepidation that is part of the experience of buying your very own luxury property in the Algarve. And we will accompany you throughout the whole process so that it is smooth and successful. You may also wish to take a look at sites such as APEMIP - the website for professional real estate agents in Portugal for further information.
Once you have found that perfect Algarve apartment or villa and are ready to move forward, the usual procedure is to make an offer through the agent who showed you the property. They will then negotiate the selling price with the seller and ensure that both parties are happy. Additionally, the agent will make sure that both the seller and buyer understand exactly what is included in the deal.
Once a price has been agreed upon, you as the buyer will need to lodge a reservation deposit to secure the property as your own. This deposit is generally arranged with the assistance of your lawyer and is typically around the €6,000 mark. This price will however be deducted from the deposit made at the Promissory Contract stage later on in the process (see below). When the reservation has been made, the seller will have enough security that the deal will be completed and will therefore take the property off the market.
Within 14 days signing the Reservation Form and lodging your reservation deposit, the next step is to enter into a promissory agreement with the seller of the property. This is a legally binding contract that clearly states all of the conditions of the sale. This includes the agreed price, exactly who is the seller and the buyer, the date of exchange (i.e. the completion of the contract), what exactly is included in the purchase of the property (for example, furniture), payment terms and any other terms and conditions.
To complete a promissory contract, you'll also need to pay a deposit on the property. In Portugal, this is typically 20 per cent of the overall price, minus the reservation deposit. When you sign and complete the promissory contract, you may either sign it yourself or have a lawyer to whom you have given power of attorney, represent you...
Once the promissory contract has been signed, if either the buyer or seller pulls out of the deal for any reason, they face penalties to the other side to the amount of the promissory contract. This overcomes the issues we have in the UK around ‘gazumping’.
Once the sale has been completed, the pubic deed will then need to be signed and witnessed by a Portuguese notary. The notary will ensure that all necessary legal documents have been signed and completed and that you as the buyer have paid the purchase tax applicable in Portugal. They will then issue a certificate to serve as legal proof of the legitimate purchase and that the agreed payment has been paid in full to the seller.
With such important decisions to be made and steps to be taken when investing in luxury property, it's important to seek help not only from a company that understands the industry, but the area too. At Golden Triangle Real Estate, we have first-hand experience of buying and relocating to the Algarve and specifically to the Golden Triangle and it give us great satisfaction to share our experiences and information with potential future investors.
As well as our local experience Golden Triangle Real Estate typically offers luxury properties that are exclusive to our agency. So if you've seen a property on our site that you're interested in, you are unlikely to find it anywhere else. We aim to be a part of your journey throughout the entire investment process, so you will have our help and expertise during every step along the way.
For more information regarding any of our properties or services, get in touch with us now.
There's no doubt about it - if you're looking for the ultimate holiday home or luxury property to rent out, there's no better location..