The Process of Buying a Property in Azores: From the Visit to the Closing
The Azores have become an increasingly popular destination for foreigners wishing to invest in real estate and it's entirely legitimate for buyers unfamiliar with the process in the country to have many questions. In fact, I'm writing this article precisely because I've been approached by a large number of people like you who seek clarification.
Whether for a second home, investment purposes, or even a permanent move, the Azorean real estate market offers a variety of opportunities. However, it's crucial to understand the process of buying a property in the Azores before diving into this market. In this article, I will describe step by step how this process works, from the initial visit to the closing of the deal, as I have the experience of working with many foreign buyers.
1. Property Visit:
The first step to buying a property in Portugal is the visit. It's essential to carefully choose the areas that interest you the most and get in touch with a local real estate agent. I will be your ally in the search for the ideal property. During the visit, evaluate not only the property itself but also the neighborhood, local amenities, and other important factors. Ask me all your questions! This is the time to ask many questions and clarify all your doubts.
2. Making an Offer:
After finding the property that meets your needs and expectations, it's time to make an offer. This is done through the real estate agent, who will present your offer to the seller. The proposal will include the price you are willing to pay, payment conditions, and the closing date, as well as any other conditions you may require. Keep in mind that generally, the more conditions you add, the less room there is for negotiation in terms of price.
To validate your offer and as a sign of good faith, you will need to pay a deposit. This amount will be fully refunded if your offer is not accepted by the seller. Please note that this deposit is not a "reservation" of the property, which means that as long as your offer is not accepted by the seller, the property will remain on the market and open to receiving other offers.
The seller will have 5 days to make their decision, and remember that negotiation is common at this stage, and you may need to adjust your offer based on the seller's response.
Negotiation is a crucial part of the property buying process in the Azores. The seller may make counteroffers, and eventually, an agreement can be reached. In addition to the price, other details, such as which items will be included in the sale (furniture, appliances, etc.), can be discussed at this stage. It's important to have an experienced real estate agent who knows how to negotiate effectively on your behalf.
4. Preliminary Agreement:
Once the parties involved agree on the terms, a preliminary agreement is usually signed. This document, known as the "Promissory Contract of Purchase and Sale," establishes the final terms of the agreement, including the price, payment dates, and the closing date. It is common to pay a deposit at this stage, which is usually a minimum of 10% of the purchase price.
5. Public Deed:
The final step is the signing of the public deed, which takes place before a notary. At this moment, the buyer makes the final payment, and the property is officially transferred to their name. This is also the time when all fees and taxes associated with the purchase are paid.
Remember that this is a general guide to the process of buying a property in Portugal, and details may vary depending on the specific case. It is highly recommended to rely on experienced professionals, such as real estate agent and lawyers, to guide you through each step of the process.
With careful planning and the right assistance, buying a property in the Azores can be a rewarding and successful experience.
Looking for financing to buy a house in Azores?
Soon, I'll write about it. Stay tuned!