POTENTIAL PITFALLS OF BUYING PROPERTY IN PORTUGAL

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POTENTIAL PITFALLS OF BUYING PROPERTY IN PORTUGAL

POTENTIAL PITFALLS OF BUYING PROPERTY IN PORTUGAL If you want to buy a home in Portugal, you're obviously dreaming of being happily settled in and putting your feet up with a Super Bock or a glass of vinho verde. But in between seeing the property you want and being able to relax, there are a number of nasty little pitfalls you need to watch out for, or your dream could be spoiled for good.

Fortunately, we're here to help you with some good advice.

One big pitfall that could catch buyers from elsewhere is the law of subrogation. This attaches debts to the property, rather than to the borrower, so that if you're not careful, you could end up being liable for ten years' unpaid taxes, three years of electricity bills, and even a huge mortgage or personal debts that have been secured against the property.

Check all the owners of your future house property ownership Portugal Fortunately, any competent lawyer will find any debts that are attached to the property by checking the Certidão de Teor, or registered title. They should also check utility bills and local taxes are up to date before you sign the contract. But this is one reason you need to use a lawyer who's well versed in Portuguese law, not your family solicitor back home.

Make sure you know what you are buying Rural properties can also be a bit of a problem when it comes to the title deeds. Sometimes a property is made up of numerous small parcels they may be very small strips indeed. Some may never have been sold, while others may have been subdivided. In communities where 'João owns the field as far as that big stone there' was the usual way of demarcating property, it can be difficult to find out exactly what you're buying. Agents are often clueless when it comes to working out the details, so again, you need a good lawyer or agent.

Buildings may also have been put up with no administrative record. That might mean your pigsty has to come down, which isn't so serious, but if it affects the house itself or a building you were planning to convert, it could be disastrous.

However, luckily there's a legal procedure to solve the problem. You may need to ensure that your purchase includes a 'rectification' not only ensuring the record is up to date, but also legalising any existing buildings that don't have a planning permission. The major difficulty is likely to be agreeing with the vendor to get things sorted out and working out who should pay for it.

Making sure the deeds are correct can be a thankless task. Agents may be little or no help so again, finding a really good and thorough lawyer is key to a successful purchase.

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VitorFalcão real estate consultant vitor.falcao@ourhomeportugal.com +351 930 406 103

www.ourhomeportugal.com AMI: 22847