GUIDE TO SELLING A PROPERTY
When deciding to sell a property it is necessary to check that all necessary documentation is available and up-to-date. It is advisable to have this package of documents ready to give to each of the Real Estate Agent.
Always use a Lawyer when selling a property.
In the case of an Urban property the necessary documentation is as follows:
a) Photocopy of photo identification such as a passport
b) Photocopy of fiscal number
c) Photocopy of the Habitation License for property constructed after 1951 (Other documents may be required)
d) Photocopy of the Certificate of the insertion in the records of the Land Conservatory
e) Photocopy of the detailed "Caderneta Urbana" from the Tax Office
f) Photocopy of the "Escritura" when they originally purchased the property
e) Photocopy of the Plans of the property
f) Photocopy of any maintenance agreement, any regulations related to the re-sale or restrictions imposed by a developer
g) Photocopy of the last payment of the "Contribuição Autárquica"
h) Photocopy of the ID and their "Contribuição Fiscal" from the Tax office for each of the owners named in the "Escritura" document
In the case of a Rural property an extra document is necessary, this is a detailed description of the rural part of the property. This is named a "Caderneta Rústica" and it is issued by the local Tax Office
The laws relating to selling a property in Portugal are relatively uncomplicated and the movement of the resulting funds is unrestricted.
in doing so. If selling is the intention of the owner then it makes very good sense to make sure that the property is placed where it will be best exposed to the potential market of people who are likely to buy the property.
It is advisable to sell a property through a Licensed Real Estate Agent and there are advantages.
Firstly, there is the considerable convenience to vendors in using a Real Estate Agent - especially when they do not live in the country or are absent for lengthy periods of time.
Most Agents invest money in marketing their products in foreign markets. Established Agents also enjoy many referrals from past contacts and clients. They can also help advise on the best way to present the property using an objective and unbiased point of view.
Agents will use their professional skills in presenting a property to potential buyers and in negotiating the terms of the sale which in turn increases the chance of a achieving a satisfactory sale price.
Most foreign buyers have little or no real knowledge of the Algarve therefore an Agent has to invest a considerable amount of time to achieve each sale.
Agents will request a vendor to sign a legally binding ‘Contrato de Mediação’ this is a document required under law stating the terms of the contract, the details of the property, the price sought, and the commission that is to be paid to the Agent. In Portugal there are occasional agreements between the various Real Estate Agents. Usually a commission is paid by the vendor to the Agent that is chosen by the buyer. This is regardless of the possibility of other Agents being involved in the sale.
Some Agents request an exclusive contract (sole agency agreement) in representing the vendor in the sale of their property. The vendor must decide if this type of marketing will be in their best interest.
If you have any questions in regard selling a property in Portugal 'contact us' for more information.
These are some tips and hints to help you sell your property. Always seek advice from your Real Estate Agent as they can often make good "house doctors" due to their experience and the number of properties that they see in their daily working life and they also have an objective point of view of your property.
When a potential buyer is interested in a property, one question they normally ask the agent is, Why is the property for sale?. The Agent will need a realistic answer.
Most vendors have a pre-conceived idea of how much they want to achieve for their property. This figure is often arrived at in various ways such as their own value, comments from friends, general information from the market place and the location. As there are many other factors which affect the value, a more realistic view is to obtain some valuations from chosen Real Estate Agents. A good Agent will take into consideration the sellers point-of-view plus their professional local knowledge of similar properties and the current market trends. Discuss with each Agent the policy they use in regard to pricing.
The vendor should always bear in mind that a buyer will only paying what they consider to be a reasonable price in relation to what they have been shown elsewhere, therefore instructing the Agent to market the property at an unrealistic asking price, this often becomes an obstacle in achieving a viewing on the property, let alone a satisfactory sale. Ask your Estate Agent for objective and unbiased advice on how best to present your property for viewing to potential purchasers.
Choose your Real Estate Agents carefully, if selling on a multi agency basis, use 3 maximum as buyers may think negatively about a property that is being handled by every agent in town. Agents often specialise in certain segments of the market and these should be considered in relation to the selling potential of a property. Always offer the property for sale with the same asking price through all of the agents to avoid buyer manipulation. Prepare your documents for the agent or if they are with your lawyer, instruct your lawyer that the agent will be requesting them in order to market the property, any delay in getting the documents to the agents will only be a delay in them marketing your property.
Access to the property should be made as easy as possible, consider giving the agents a key. Buyers normally view during short visits to the Algarve and sales are lost because of viewing limitations created by the vendor. Some Agents refuse to handle properties that are rented to holiday visitors. When a property is being offered for sale and is being rented out at the same time, do inform the managing agents that viewing is to be allowed with the cooperation of guests and that they leave the property in a clean and tidy state.
Any vendor should carefully think about the risks involved in selling the property privately or through anyone who is not a Real Estate Agent. If anything goes wrong these individuals have no legal responsibility in the sale and you may have involved a yourself or someone else in serious legal problems with no come back from anyone.
Many properties in the past were purchased through an Offshore Company. This method places a property in the ownership of a Company that is registered outside Portugal through a Share Purchase Agreement. If the property is already in an Offshore Company it is safe to assume that the buyers lawyer will explain to his client the advantages and disadvantages about this type of ownership may recommend to dispense with the Offshore ownership. If you have any questions about selling a property please do not hasitate to contact us.
Selling a property in Portugal is a little different to selling in the UK. Here, the vendor is responsible for providing the Estate Agent with the documents relating to the property before they can offer it for sale. Some vendors lodge these documents with their lawyer but the lawyer will have to provide the agent with the documents on the vendors behalf.
This is a requirement of IMOPPI. There are many agents who do not abide by this law, and, as a result of this sometimes the sale is delayed or sometimes cancelled because issues arise that the agent was not informed of and therefore not able to deal with before finding a buyer.
See ‘Guide to Selling a Property’ for a list of the documents.
If you have any questions about selling a property in the Algarve Portugal please 'contact us' with full description of the information required.
ADVERTISING YOUR PROPERTY IN PORTUGAL
Advertising your property in Portugal can be as simple as calling us or filling our Sell property form. Our team will contact you as soon as possible so that we can start publishing and advertising the property details on our websites and in a network of large real estate portals all over Europe. With Mccarrick O'Donnell your property is in good hands.