Are you looking to buy your dream house in Portugal and wondering about the purchase process? While buying property in Portugal is not vastly different from other European countries, there are a few nuances to be aware of. Notably, the roles of the notary and the importance of hiring a specialized lawyer. In this article, we will explain the differences between a notary and a lawyer and the various fees involved.
The role of a notary in a real estate transaction in Portugal differs significantly from that in other European countries. In France, for instance, each party has their own notary who is responsible for verifying their client’s documents. In Portugal, however, it is the lawyer who represents your legal interests, checks the financial status of the property and any mortgage, drafts the purchase contract, and prepares the transfer for the notary.
The notary, on the other hand, is an independent public officer who oversees the transfer of property. They do not work in the interest of either the buyer or the seller and do not receive any payment of money. The notary is only present during the signing of the deed of sale (Escritura Pública de Compra e Venda) to authenticate signatures and the financial settlement between the seller and the buyer.
In Portugal, the lawyer takes on the role that the notary has in other countries: they verify the legal documents of the property (residency permit, building permit), check who the sellers are and if they are the legitimate owners, investigate if there is a mortgage or other debts on the property, and assess the seller’s solvency (especially when buying new construction).
In summary, hiring a lawyer ensures:
Thus, hiring a lawyer is not mandatory, but highly recommended!
A lawyer charges approximately 1% of the purchase price of the property, excluding VAT.
As mentioned earlier, the notary is involved in authenticating the documents and signatures during the sale signing at the end of the process. They then register the transaction with the competent authorities.
In Portugal, it is the buyer who pays the notary fees. We recommend obtaining quotes in advance to choose the one that best suits your needs. Notary fees generally range from 1% to 3%, including registration fees and the stamp duty (0.8%).
The choice between hiring a lawyer in addition to a notary depends on your specific needs:
Regardless, if you are buying as a foreigner, a lawyer is highly recommended to avoid unpleasant surprises!