Tips for home buyers

[omostra06]

Anyone thinking of buying a property in Portugal and want to know your way around the paperwork, here are a few pointers that may help you avoid problems.


In the old urban cardenetas(deeds) if it is a house for habitation it will be written Casa de Habitacao.
If is a new type cardeneta (deeds) there is one part which says Afectacao: (Here will be written) Habitacao.

If it is garage it will say garagem.
If it is for storage building it will say Arrumos.
If it is a warehouse it will say armazem.
If it is for commercial use it will say comercial.
If it is an old oil press factory it will say lagar.

The most important thing on a deed, old or new, is if it doesnºt say casa de habitacao or habitacao then it is not a building for living in.

it is possible to buy any of these types of properties and live in them should you choose to. However it will never be a legal house and if you came to sell it you would not be able to sell it as a house and any potential buyer would not be able to secure a mortgage on it. unless you carry out a project to allow change of use.

Before you purchase any property in Portugal is it essential to ensure all the relevant documentation is up to date and present for the Escritura.
Cardeneta Predial
This is a document (obtained from the Fiscal department of the Finanças) detailing the property's size, location, boundaries and a brief description. In some cases there maybe a drawing outlining the plot size and buildings.

Certidão de Teor
Is a document showing if there are any outstanding debts on the property and if the property is registered in the seller's name. some times it can take a while for debts to be logged and it is advisable to instruct your solicitor to check with the Conservatória do Registo Predial (land registry office) on the day of completion to ensure the property is free from debt.

Proof of Payment of IMT
To complete a purchase of a property in Portugal you will need to provide proof of payment of IMT (for properties with a sale value above 87,500€) to the notary.

Identification documents
Both the buyer and seller must be able to produce identification documents (identity card and/or passport) as well as their tax numbers for the Escritura in Portugal.

Licença de Habitação
Any property constructed as a habitable dwellings after 17th August 1951 must have a Licença de Habitação (habitation licence). Properties intended as habitable dwellings constructed prior to 1951 must have a certificate from the local Câmara indicating this.

Ficha Technica de Habitação
Houses built or altered after 1 January 2003 in Portugal are required by law to have a Ficha Technica de Habitação. This document contains information about the property including builder details, materials used and so on.

Energy Certificate
A new requirment from Jan 09, a certificate that is prepared by an Engineer to give a detailed report on the property.

[mairead]

Originally Posted by omostra06

Anyone thinking of buying a property in Portugal and want to know your way around the paperwork, here are a few pointers that may help you avoid problems.


In the old urban cardenetas(deeds) if it is a house for habitation it will be written Casa de Habitacao.
If is a new type cardeneta (deeds) there is one part which says Afectacao: (Here will be written) Habitacao.

If it is garage it will say garagem.
If it is for storage building it will say Arrumos.
If it is a warehouse it will say armazem.
If it is for commercial use it will say comercial.
If it is an old oil press factory it will say lagar.

The most important thing on a deed, old or new, is if it doesnºt say casa de habitacao or habitacao then it is not a building for living in.

it is possible to buy any of these types of properties and live in them should you choose to. However it will never be a legal house and if you came to sell it you would not be able to sell it as a house and any potential buyer would not be able to secure a mortgage on it. unless you carry out a project to allow change of use.

Before you purchase any property in Portugal is it essential to ensure all the relevant documentation is up to date and present for the Escritura.
Cardeneta Predial
This is a document (obtained from the Fiscal department of the Finanças) detailing the property's size, location, boundaries and a brief description. In some cases there maybe a drawing outlining the plot size and buildings.

Certidão de Teor
Is a document showing if there are any outstanding debts on the property and if the property is registered in the seller's name. some times it can take a while for debts to be logged and it is advisable to instruct your solicitor to check with the Conservatória do Registo Predial (land registry office) on the day of completion to ensure the property is free from debt.

Proof of Payment of IMT
To complete a purchase of a property in Portugal you will need to provide proof of payment of IMT (for properties with a sale value above 87,500€) to the notary.

Identification documents
Both the buyer and seller must be able to produce identification documents (identity card and/or passport) as well as their tax numbers for the Escritura in Portugal.

Licença de Habitação
Any property constructed as a habitable dwellings after 17th August 1951 must have a Licença de Habitação (habitation licence). Properties intended as habitable dwellings constructed prior to 1951 must have a certificate from the local Câmara indicating this.

Ficha Technica de Habitação
Houses built or altered after 1 January 2003 in Portugal are required by law to have a Ficha Technica de Habitação. This document contains information about the property including builder details, materials used and so on.

Energy Certificate
A new requirment from Jan 09, a certificate that is prepared by an Engineer to give a detailed report on the property.

Hi again would you know whether the Building Energy Rating assesement is the same in Portugal as in Ireland. I am just wondering because my husband is a qualified Building Energy Rating Assesor here in Ireland and we were wondering if it could be something he could do when we come over.
Sorry for all the questions but is the law now that you need the energy report before you can build sell or rent?

I would appreciate any information on this!

Thanks

[omostra06]

The Energy Certificate here in Portugal will be more or less the same in other EU countries, however in order for him to do this work he would have to be acredited to carry out this work here in Portugal.

these are the people overseeing and regulating these inspections
:: ADENE - Agência para a Energia :: Homepage

Yes, as of Jan 09 you need one of these certificates to rent out or sell a property here in Portugal.

one company near us charges like this:

apartments

t0 - t1 200euros
t2 - t3 250 euros
t3 plus upto 300m2 300 euros
more than 300m2 increase 2euros per/m2

houses

upto 200m2 all on one floor 350 euros
upto 500m2 500 euros
more than 500m2 increase 2euros per/m2

all plus iva and the 45 euro that goes to the government.

[omostra06]

A few tips to think about when looking for a property in Portugal.


1 Take your time. Don’t rush into signing a promessa contract until you are sure the property and location are completely suitable for your needs.

2 Take off the ‘rose coloured glasses’. Remember not to do anything you won’t back in the United Kingdom. If something seems a little out of the ordinary seek independent advice.

3 Make a checklist of requirements you want from your property in Portugal. If you are looking to retire and live abroad take into consideration proximity of local amenities. If it a holiday house you are looking for – is an airport important?

4 Ensure the legal owner is selling the property you wish to buy and that what is advertised is what is being sold.

5 Ensure on the day you sign for the property the property is clear from any debt. Mortgages and debts are registered to a property in Portugal. Until you register the property in your name debt can be added and it is up to you to pay it off.

6 If you like a property, talk to the locals. They are a great source of information and will be glad to assist.

7 Visit the property more than once and at different times of the day. What looks great in the evening sun, may not first thing in a morning.

8 Location of your property is important. If you are looking at a property close to water (river, lake, stream etc) please note it does rain in Portugal and water levels can rise dramatically within hours. Remember if you are viewing a property in the spring or summer, it does rain in Portugal during the autumn and winter. What looks like a cute rock garden, could turn out to be a dry river bed.

9 Under declaring. When you are purchasing a property in Central Portugal beware of under declaring the property’s’ true value when signing at the Escritura. The practice is illegal and it could cost you dearly when, and if, you come to sell. You will be liable to pay tax on a property if you make a profit from its sale.

10 Register your property and land as quickly as possible following the final signing. Until you register the property in your name previous owners can still lodge debt against the property.

[christopherdouglas]

Hi Derek,
Wow, that's a lot if info to take in. Brilliant stuff, we're coming out on 21st and I have just printed off all of the above advice to take with us. Wonderful.
What a brill site this is . . .
Regards,
Chris

[omostra06]

Originally Posted by christopherdouglas

Hi Derek,
Wow, that's a lot if info to take in. Brilliant stuff, we're coming out on 21st and I have just printed off all of the above advice to take with us. Wonderful.
What a brill site this is . . .
Regards,
Chris

Hi Chris, no problem, happy to help with any questions you may have about Portugal.

[solarq]

Originally Posted by mairead

Hi again would you know whether the Building Energy Rating assesement is the same in Portugal as in Ireland. I am just wondering because my husband is a qualified Building Energy Rating Assesor here in Ireland and we were wondering if it could be something he could do when we come over.
Sorry for all the questions but is the law now that you need the energy report before you can build sell or rent?

I would appreciate any information on this!

Thanks

Hi,

building energy rating in Portugal obeys in principal the following laws: Decreto-Lei78/2006, Decreto-Lei 79/2006 e Decreto-Lei 80/2006. You can download these laws at Diário da República Electrónico or more precisely athttp://www.dre.pt/sug/1s/diplomas.asp, introducing the type of law and number.

Your husband would have to register in the professional organizations like ANET or OE (Ordem dos Engenheiros) and then attend two seminars and pass the exams and be recognized as "Perito Qualificado"

[solarq]

Originally Posted by omostra06

Hi Chris, no problem, happy to help with any questions you may have about Portugal.

@omostra 06

thank you for you detailed info. Even local buyers get caught sometimes in "missunderstandings" ending up with a property that does't suite their plans.

18 months ago I came just in time to prevent a Portuguese teacher to buy a property with a ruin of 40m2, where instead of beeing allowed to build a residential home of 150m2 he would just get the permissions to join a bathroom.

Check always with the city-hall.

By the way, that Real Estate Agent had to close meanwhile.

[omostra06]

When buying a property in Portugal you have to pay purchase taxes for properties over 89,700€. These are calculated on a per cent basis, which are on a sliding scale relating to the value of the property you wish to purchase.



Resales properties - including ruins, land, old houses - are subject to Imposto Municipal Sobre as Transmissões (IMT) tax. This must be paid up to three days prior to Escritura. The level of tax levied is on a sliding scale and is a percentage of the purchase price.



If the property is your sole residence then the taxes are levied as follows:

under 89,700€ 0%
89,700€ - 122,700€ 2% minus 1,794€
122.700€ - 167,300€ 5% minus 5,475€
167,300€ - 278,800€ 7% minus 8,821€
278,800€ - 557,500 € 8% minus 11,609€
Over 557,500€ 6%
If the property you are purchasing is a second property such as a holiday home then the taxes are calculated as follows:
under 89,700€ 1%
89,700€ - 122,700€ 2% minus 897€
122.700€ - 167,300€ 5% minus 4,578€
167,300€ - 278,800€ 7% minus 7,924€
278,800€ - 557,500 € 8% minus 10.712€
Over 557,500€ 6%
Agricultural and building land is charged at the flat rate of 5%.

If you are unsure how much the IVA or IMT will be, it is advisable to check with the local Financas before you enter into a Promessa Contract.

The above figures were current as of January 2009.

[ofilha]

Originally Posted by omostra06

A few tips to think about when looking for a property in Portugal.


1 Take your time. Don’t rush into signing a promessa contract until you are sure the property and location are completely suitable for your needs.

2 Take off the ‘rose coloured glasses’. Remember not to do anything you won’t back in the United Kingdom. If something seems a little out of the ordinary seek independent advice.

3 Make a checklist of requirements you want from your property in Portugal. If you are looking to retire and live abroad take into consideration proximity of local amenities. If it a holiday house you are looking for – is an airport important?

4 Ensure the legal owner is selling the property you wish to buy and that what is advertised is what is being sold.

5 Ensure on the day you sign for the property the property is clear from any debt. Mortgages and debts are registered to a property in Portugal. Until you register the property in your name debt can be added and it is up to you to pay it off.

6 If you like a property, talk to the locals. They are a great source of information and will be glad to assist.

7 Visit the property more than once and at different times of the day. What looks great in the evening sun, may not first thing in a morning.

8 Location of your property is important. If you are looking at a property close to water (river, lake, stream etc) please note it does rain in Portugal and water levels can rise dramatically within hours. Remember if you are viewing a property in the spring or summer, it does rain in Portugal during the autumn and winter. What looks like a cute rock garden, could turn out to be a dry river bed.

9 Under declaring. When you are purchasing a property in Central Portugal beware of under declaring the property’s’ true value when signing at the Escritura. The practice is illegal and it could cost you dearly when, and if, you come to sell. You will be liable to pay tax on a property if you make a profit from its sale.

10 Register your property and land as quickly as possible following the final signing. Until you register the property in your name previous owners can still lodge debt against the property.

In addition to the above, i suggest finding a good lawyer, they are not too expensive but can save you lots of money. Even just talking to one to get some legal advice will be worth the money. There are two benefits to having a lawyer: you gain knowledge of the legal aspects of your purchase and secondly, if there is a problem, you have backup. There are Portugues lawyers but you should find one from a reputable source.