1) RESERVATION OF TITLE
The reservation document supports the seller by allowing him to remove the selling property from the market. Along with the document a check is issued to the order of the Mediator, who will hold it until the end of the negotiation. This check will be returned to the buyer in case the sales and purchase agreement is not concluded.
2) POWER OF ATTORNEY - POA
The power of attorney (POA) is carried out by lawyers, who are assigned by the buyer with all necessary power to manage the property purchase.
3) FISCAL REPRESENTATION
Every foreign taxpayer with some kind of interest in Portuguese territory is subject to the terms of the article 19º nº 4 of the General Taxation Law to have a fiscal representative.
“Resident taxpayers abroad as well as those who, although residing in national territory, to be absent for a period of more than six months, as well as legal persons and other entities legally equivalent to cease activity, should, for tax purposes, designate a representative resident in national territory.”
The Fiscal Representative can represent you at the Portuguese Fiscal Department and may be a natural or legal person resident in national territory.
4) FISCAL NUMBER (NIF)
Buyers who are UE non-citizens must have a Portuguese fiscal number.
A fiscal number (NIF) is a tax identification number issued in Portugal to anyone who wishes to undertake any official matters in Portugal. This number must be requested in the tax office where you will also identify a fiscal representative who will assume tax obligations that the taxpayer is subjected to compliance.
The fiscal representative has joint liability with a non-resident taxpayer, with the exception in cases where tax authorities are informed about the existence and identity of an administrator of the non-resident properties or rights.
5) BANK LOAN
In case you need a bank loan for the purchase of property, there are some banks that can help by providing special terms for non-residents.
6) PROMISSORY SALES AND PURCHASE AGREEMENT (CPCV)
In this agreement, the designated lawyer will identify the parties and the property, as well as determine price, terms and conditions of payment and penalties in the event of non-compliance by any of the parties.
7) SALES AND PURCHASE CONTRACT / TITLE
This title is represented by a deed as an option to the buyer, using one of the following:
- Notary’s Office
- “Casa Pronta” Process
- Certified document by a lawyer
The parties will sign the document in the presence of a Notary, a lawyer or in the “House Ready”, to enable the transfer of property, ensuring that all property documents are in compliance.
After the Sales and Purchase Contract is finalized by a Notary or a lawyer, there will be a property registration at the Land Registry and the Tax Office, which gives ownership of the property to the new buyer.
9) “CASA PRONTA’’
“Casa Pronta” (which means ‘’House Ready’’) is a service provided by the Ministry of Justice that enables the immediate and effective implementation of all procedures for purchase and sale, donation, exchanges, lieu of payment of rural, urban or mixed property; with or without resources to receive a bank credit, to make a transfer of bank loan for home purchase from one bank to another or to receive a loan on mortgage.
In this service, it is also possible to perform a constitution of horizontal property.
Where you can find the “Casa Pronta” help desk?
In the Land Registry Office and service stations in the citizens bureau. You can take advantage of the service “House Ready” regardless of the location of the property you want to buy. The advantage of using this service is to be able to perform all real state operations / transactions in one single help desk. It is a simplified process with less formalities and reduced costs.
THE MEANING OF SOME REAL ESTATE COMMERCIAL TERMS