You may not want to, but there may come a time when you have to sell your
property in Portugal. Any place in this beautiful country is prime real estate, so taking on this endeavor isn't exactly the most difficult thing in the world. Surely, you'll find many people out there who are willing to purchase your real estate in Portugal. They're probably excited about it too. But before you do that, it pays to learn a few tips, and perhaps even some little tricks, on how you can sell your place wisely. Fixing the property's paperwork, conducting a valuation, and setting a move-out date can ensure everything goes smoothly in the end!
Hire A Trustworthy Lawyer
One of the first steps to selling your real estate in Portugal is to hire a lawyer. Even if you end up selling your place
on your own, you will still need a lawyer to help you with all the legal stuff. From checking the legal paperwork of the property to drawing up the contracts, your lawyer's role is vital in the entire process. Even more so if you're a foreign seller! If for whatever reason, you're unable to be in Portugal during the process, then you can authorize your lawyer to serve as your legal representative. This gives them the right to act on your behalf, from negotiating with the buyer to signing important documents.
Fix The Property's Paperwork
Before you can even put your property in Portugal for sale, make sure that its paperwork is properly dealt with. Generally, it's the buyer who has to do this as part of their due diligence. But there's nothing wrong in doing it beforehand so there's less trouble as the process carries on. The most important thing is to check with the Conservatory for Real Estate Registry (
Conservatória do Registo Predial) to see if you are, in fact, the listed owner on the title deed. If not, then you have no right to sell the property unless it's fixed!
Conduct A Valuation
A valuation is also something that usually the buyer accomplishes during the real estate process. Most of the time, it's part of their application for a mortgage. However, there's nothing to stop you from conducting your own valuation beforehand. In fact, you'd do well to do it! Why? Because a valuation is what will determine the true value of your property in Portugal. And from there, you can set an initial asking price for when you put it on the market. When the buyer offers you a different price, it shouldn't be too far off your initial asking price since it's based on the valuation results.
Prepare The Required Documents Early
The length of time it will take for you to sell your property in Portugal depends on how prepared you are at the start of the process. Part of that is gathering up all the important documents. They include the title deed, Energy Performance Certificate,
Caderneta Predial (an identification document for the property), floor plan, cadastral map, mortgage documents, and a valid ID for good measure. The reason why this part may take a while is because the processes of getting many of these, especially those coming from government and financial institutions, are usually time-consuming. You'd do well to get all of these even before you put your real estate in Portugal for sale.
Be Honest About The Property
Sharing important info about the property to the buyer isn't exactly a requirement. But when the buyer (or their
real estate agent) inquires about the property, you're obliged to be 100% honest. Why? Because if you're not, it can still bite you back in the behind later on. If the owner (buyer) discovers a defect in the property after the sale that you did not disclose even during their inquiry, you can still be liable for that. All the new owner has to do is to prove that you weren't completely forthright about the property during the sale and you'll be in trouble.
Think Before Signing The Promissory Contract
Though it's not a requirement, there's a good chance that the buyer will draw up and insist that you sign the promissory contract. This is a legal document that binds you and the buyer to the sale upon signing. The latter will then have to pay you a 20% to 30% deposit. If you ever decide to buy out of the agreement after signing the promissory contract, then you will have to pay the buyer back double the amount of the 20% to 30% deposit they paid you. And in the end, you not only gained nothing but had to pay quite the penalty too.
Set A Move-Out Date
And finally, don't forget to set a move-out date. You can even include it on the promissory contract too. This is also not a requirement but it will benefit you when the time comes. The moment the sale is finalized and the ownership of the property in Portugal is transferred, you no longer have the right to stay there. What if you haven't packed? Or that the place that you'll be moving into isn't ready yet? The new owner now has the right to throw you out and leave you homeless. Do you want to suffer that sort of humiliation? Of course not, right? Then set a move-out date!
Just because your letting your property go, it doesn't mean you have to do it just willy-nilly. Selling real estate in Portugal is an important and oftentimes complex process. Make sure you do it properly by following these tips!
