The Deed and the Necessary Documents
A deed of purchase and sale is a legal act that is a contract between two parties: the seller and the buyer. This document legitimizes and legalizes the purchase and sale contract for a particular property and, therefore, will have to be authenticated by a notary. When signing the deed, this element must be present, in addition to the two parties in the business.
When is the deed done?
The deed corresponds to the last phase of the contractual purchase and sale process. It is usually preceded by a CPCV (Promissory Purchase and Sale Agreement) in which a period is stipulated (usually between 30 to 90 days) which when completed, it will be necessary to mark and carry out the deed under penalty of one of the parties losing the down payment value (monetary amount, agreed between the parties, serving as a guarantee of fulfillment of the contract and proof of the seriousness of the contractual intention). From the moment of the deed, the buyer becomes the legal owner of the property in question. Be aware, however, that this moment encompasses two stages: the signing of the Purchase and Sale Agreement between the two parties, and the signing of the Loan Agreement with Mortgage (only applicable if there is room for mortgage credit (!) - it contains everything regarding the loan: interest rates, financed amount, repayment terms, etc.; it is from the signing of this contract that the bank releases the amount necessary for the buyer to pay the former owner of the property). Only when these two stages are completed will there be a legal formalization of the buyer's possession of the real estate object of the contract.
Here is the documentation necessary for the deed to occur smoothly and quickly and effectively:
Identification documents (Citizen Card or Identity Card and Taxpayer Card) of the seller;
Certificate of Content updated with registration;
Urban Building Booklet or Application for registration of the building in the matrix (IMI Model I) issued by the Tax and Customs Authority;
Use License (for properties built after August 1951);
Infrastructure Certificate (if you have a Subdivision Permit registered from 1992 onwards, without providing a guarantee and in the case of 1st transmission);
Standardized Information Sheet;
Energy and Indoor Air Quality Certificate;
Technical Data Sheet for Housing (in the case of properties built after 2004 or with a License for Use issued from that year onwards);
Proof of payment of IMT and Stamp Duty;
Proposal for life and multi-risk home insurance;
Mutual agreement and financial investment pledge (if applicable);
Statement of outstanding credit amounts for the purposes of settlement, in the event of transfer of the contract;
Termination of mortgage or other property charges (if applicable);
Promissory contract for purchase and sale.
Deeds can be carried out at a Notary Office, at a Land Registry Office or at a Casa Pronta counter, a state aggregating service for all matters relating to the purchase and sale of houses.
What are the costs involved in a purchase and sale deed?
The deed is a charge borne by the buyer, that is, by the person who will acquire the property. This does not have a fixed value, as the total depends on certain factors, such as: Municipal Tax on Property Transfers (IMT): corresponds to the largest portion and is the tax that the State charges when a property is bought and sold. It is not a fixed price, varying according to the transaction value, location, type of property, and type of use (permanent housing or not).
Stamp Duty: always translates to 0.8% of the face value of the purchase, so it is simple to calculate, it is only necessary to know the value of the transaction. Amount paid to the notary or other competent entity: if you choose Casa Pronta branches, the costs can range from €375 if the property is purchased with its own financing, up to €700 if bank financing is available; in relation to the amounts charged by notaries, these may vary, depending on the Notarial Office you use. Expenses associated with mortgage loans (if applicable). Remember that only the deed can legally make you the owner of the property you choose and find suitable for you. Gather the necessary money to pay the aforementioned expenses, gather all the necessary documentation and contact a competent entity. You'll find that buying the house of your dreams is easier than it looks!