STEPS OF THE PROCESS OF BUYING AND SELLING A HOUSE, STEP BY STEP FROM THE PROPOSAL TO THE DEED

09 set 2023 min de leitura

STEPS OF THE PROCESS OF BUYING AND SELLING A HOUSE, STEP BY STEP FROM THE PROPOSAL TO THE DEED

Reservation of the house: a pre-negotiation act

The proposal to purchase/reserve the house and its acceptance are pre-negotiation acts, that is, acts that make possible the subsequent conclusion of the contract. When submitting an offer for a property, it’s necessary to take into account the following aspects:

Present a real value, according to its possibilities;
Present a value that takes into account the owner's expectations;
If you don't know what value to ask for, ask the real estate agency that is working with you for help;
Inform the owner about whether you are going to buy the house with your own capital, as it can be a favorable factor for the business, as it reduces the time of the sale process.

Housing Credit (optional)

After reserving the house and if you need to take out a housing credit, you should consider several financing proposals. It is a very important step in your life, as it is a decision that will influence your economic situation in the future. Before deciding on the best bank to apply for a home loan, you should check that you meet the necessary conditions for them to grant it:

Have the minimum amount required by banks, which are 10% to 20% of the value of the house;
Have money available to pay all the formalities associated with the purchase of the house (appraisal, necessary documents, taxes);
Have defined who will be the guarantors, if necessary.

Having verified all the necessary conditions, it is up to you to decide which banking entity is suitable for you. For this purpose you can:

Use your real estate agency that offers services as a credit intermediary, which will help you compile all the necessary documents, as well as advise you on what will be the best home loan for you.

When deciding which bank will finance the purchase of your home, you should follow these steps:

You must gather all the documentation that you have to send to the bank;
After submitting the documentation, it will be evaluated and validated by the bank;
If you meet all the necessary conditions, an appraisal of the property is scheduled.

List of documentation required for the credit process:

Identification document (B.I., Citizen Card or Passport);
Document with the tax identification number;
Last income statement submitted to the Finance Department and the respective settlement note;
Last three pay slips or green receipts (last six months);
Last three monthly statements of all current accounts;
Statement from the employer (indicating the professional situation);
Map of Banco de Portugal's liabilities;Declaration of commencement of activity, if applicable.

Purchase and Sale Promise Agreement

The Promise Purchase and Sale Agreement is the guarantee that they will sign the deed for the sale of your home. It demonstrates commitment by both parties and protects against any possible contract breach. Benefits:

Guarantees the validity of the contract until the date of the deed;
Establishes the rights and duties of both parties to the business;
Defines agreed values;
Establishes the terms and details of the sale (distribution of expenses, date of signature, sanctions for non-compliance, etc.);
Stipulates all the clauses of the deal that will be included in the future contract (deed). It is important to note that there are no fixed clauses for each contract, which are agreed by both parties;
Can be signed at the real estate agency itself or before a notary to ensure that the contract is reviewed and written correctly.

What is the downpayment value?

Normally, when a Promise Purchase and Sale Contract is entered into, a certain amount of money is delivered to the seller, the so-called down payment. It is a way of ensuring compliance with the contract. Usually, the most usual is to give 10% to 20% of the purchase price. Of course, this value can be higher, depending on the owner. (agreement between the parties)

House Deed

This is the final step in the entire home buying process. Before making the deed of the house, you must gather a series of documents that you must take with you:

Citizen Card/Passport and Portuguese Tax Number (NIF);
Building Book;
Conservatory Certificate;
License to use or declaration of exemption thereof;
Energetic certificate;
Housing Technical File (if the property is after 25 March 2004);
Promise Agreement for the Purchase and Sale of the property;
Proof of down payment;
Right of Preference on the Casa Pronta website;
Distract from the mortgage (if the property is mortgaged to the Bank);
Declaration of the condominium administrator (if there is one);

** The seller is fully responsible for all expenses related to the documentation necessary for the deed.
The costs of carrying out the Deed, Registration at the Conservatory and Taxes are borne by the buyer. It is this that also defines the registry where the deed will be carried out.

The cost of the Deed and Registration at the registry office is between 500€ and 600€.
As an example, the amount payable in taxes for a property of 100,000.00€:

For Own and Permanent Housing – 933.38€ (133.38€ of IMT and 800€ of I.S.)
For Secondary Housing – 1,866.69€ (1,066.00€ of IMT and 800€ of I.S.)

For more information, contact us! UrbiSeg Real Estate.