Buying A Villa In Vale Do Lobo Or Quinta Do Lago Algarve - The Facts

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Before you start hunting for your perfect Quinta do Lago or Vale do Lobo property, make sure any estate agent who assists you is licensed by the Portuguese government. In Portugal a real estate license is granted by the State to an estate agent, only if he has all of the required qualifications to operate. The license is a guarantee that the estate agent is qualified in his profession and is also a sort of insurance cover that can be claimed against in the case of proven dispute.

Once youve found a licensed estate agent and they have helped you find your dream Algarve villa or apartment and successfully negotiated the purchase, you will have to retain the services of a local lawyer who, after the necessary searches, will draw up a Contrato de Promessa de Compra e Venda a promissory contract.

This is a legally binding document stating the conditions of the property sale and which also requires a deposit with your lawyer of between 10 of the total purchase price.

If you drop out of the sale for some reason you will forfeit this money. If the vendor decides to withdraw from the sale they are legally obliged to repay you twice your deposit!

Every purchaser is required to obtain a Fiscal Number from the local Tax Office. Your lawyer will assist you in this.

The promissory contract will also stipulate a date for the signing of the final deed, called the Escritura de Compra e Venda. This is usually three or four weeks after the signing of the contract of sale and is also the date when the balance of the purchase price is requested.

Prior to the final act of purchase, the purchase will be subject to a Municipal payment, like a stamp duty, called IMT or Imposto Municipal sobre Transmissoes which as of the 1st of January 2003 replaces the previous tax payment named SISA.

As soon as you sign the final contract your lawyer will register the property with the Land Registry in your name.

Taxes & other costs - You should allow in the region of 10 of the property value. For non-residents, mortgages are available in any major currency for up to 75% of the property value or purchase price. Generally speaking most mortgages in Portugal are available for between 5 to 30 years. When it comes to determining a potential borrowers eligibility for a particular mortagage most lenders apply the same criteria. They take into account the borrowers income, their outgoings, their age, credit history etc., and proof of address, identity and earning will all be required.

Through our contacts at various banks in the region, you will be able to receive a provisional response to your mortgage application within 48 hours. This is of course of utmost importance; once youve found your dream home, youll want to able to proceed swiftly so the property can be taken off the market!

About the Author:
Caroline Van Ketel is a fully licensed Real Estate Agent who has over 5 years experience of the Algarve property market. Find out more about Caroline and Algarve property at http://www.premreale.com



Article Originally Published On: http://www.articlesnatch.com


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