It is important to use an Estate Agent who has a Government License.
The license is issued by the state and depends on qualifications of the Estate Agent. Licensed Estate Agents have certain forms and procedures that have to be implemented to protect you as a buyer or seller.
If you become into dispute with a licensed agent then you can request to log a complaint against them in a log book that they are requested to have by law. This book is stamped by the State and a copy of what you have written is to be sent to the State by the agent within a limited period of time otherwise you can get the police involved and fine will be issued to the agent.
In the result of any financial loss to you, caused by the agent's negligence, you can make a claim against their Insurance up to a certain value.
If you used an agent who isn't licensed then the chances are they will not have this type of insurance and it would be hard to gain any compensation for any problems that may arise. If the agent is not licensed, there is no way of logging an official complaint on the Estate Agents Register.
It is quite usual for the seller of a property to pay a commission to an Estate Agent, this varies from approx 3-5% of the property value.
It is an option for the buyer to appoint a power of attorney such as their Lawyer or agent to act for them legally in the matter. A document named "Procuração Publica" is prepared with the necessary details and then in the Notary Office this document is signed and registered by the Notary.
When you buy a property in Portugal you are require to obtain a fiscal number from the local tax office and also to have a bank account.
If you intend to make a purchase on your trip to Portugal you are normally required to leave a 10% deposit of the property purchase value.
Your agent will normally help you to sort out the fiscal and bank or show you where to go.
It is ususal for the buyer and seller to initially enter into a Promissory Contract detailing the conditions of Sale - "Contrato de Promessa de Compra e Venda". This Contract is registered it in the Notary Office (town hall) and a deposit (usually 10% of the property value) is paid. This Contract is legally binding on both sides and the law requires the seller to repay twice the deposit should he withdraw from the sale. Likewise, it the buyer fails to complete he forfeits the total of his deposit. There are specific laws relating to this act that a Lawyer or agent will be able to explain.
Property purchases are subject to tax (stamp duty) if the property value is over 80,000 euros. This tax was formerly known as SISA tax and properties up to 80,000 euros are exempt from this payment. The payment is to be paid prior to completion of the purchase.
If you are having a property built, it is worth considering buying the plot and paying for the construction separately. This way the SISA tax is only payable on the land.
On completion of the sale, an "Escritura de Compra e Venda" is signed at any notary office and is recorded in his official books. The Notary will check prior to signing that all the necessary paperwork is correct and confirm the facts surrounding the sale. It is at this point that payment for the property is made. After the sale is recorded in the Notary's book a copy is given as proof to the buyer. The photocopy will carry the seal of the Notary but should not be mistaken for a Title Deed.
The property then needs to be registered on the Land Registry (Conservatoria do Registo Predial) in the new owners name. You are not obliged to register the property on the land registry until you come to sell the house but it is strongly recommend that you do immediately after the purchase. This will prevent the previous owner registering debts against the property.
The plans in the Town Hall referring specifically to the property must match the existing construction. If the property is habitable it must have the following documents.
1. A detailed description of the property "Caderneta Urbana" from the Tax Office (If the property is rural you will also need a "Caderneta Rustica")
2. Habitation License for property constructed after 1951
3. A Certified insertion in the records of the Land Conservatory
Commercial and Industrial properties require both Points 2 & 3
Each Town Hall and Tax Office have their own local interpretation of the laws and regulations and these should be checked prior to an intended purchase. It is always advisable to make legal and other specific searches prior to acquiring a rural or urban property.