The process of buying a property in Portugal

As a start we always advise you to work with a professional and experienced agency such a WESTMARK when you are purchasing a property in Portugal. There are many checks and balances that need to be done and missing essential steps ca cost you a lot of money.

Since the European Union is more and more regulating the financial markets across Europe, the process for buying a property in Portugal will be similar as the process in your home country. However, there are specific laws and regulations in Portugal applicable, therefore we provide you the step-by-step process to buy a property in Portugal:

1. Negotiations and verbal agreement
2. Reservation agreement
3. Promissory Note
4. Final Deed


Negotiations and verbal agreement

As soon as you have found your holiday home in Albufeira, Vilamoura, Loulé or where in Portugal it may be, the negotiation process starts. In some countries the law specifies how real estate negotiations should be done, but in Portugal that's not the case. Therefore, we always advise to work together with a trusted registered agency such as WESTMARK estate agency when you get into negotiation. Your agent is skilled and knows what to do.

Once you reach a verbal agreement upon the price of the property, down payment, timelines and included furniture, fittings and fixtures, a very important next steps arrises. In some countries across Europe the verbal agreement is legally binding. In Portugal that's not the case, the verbal agreement si basically worth nothing and each Party can still withdraw. Therefore, the communication skills of your agent during this process are key in order to close the deal successfully.

Reservation agreement


Smart agents will draft a document that explains all the terms and conditions for all Parties to sign, a so-called Reservation agreement. The fact that both parties need to place a signature on this document makes it a stronger gentleman's agreement, and less easy for any Party to withdraw. Legally the reservation fee has no value since it's not being processed by a notary.

Some agencies will ask buyers to transfer a ´reservation deposit´ into their bank accounts. This is not common practice anymore, but there is in general no harm in doing this, as long as you work with an established agency!

Promissory Note (Contrato Promessa de Compra e Venda)

The first official legal document that is going to be drafted is the Contrato Promessa de Compra en Venda, in English the Promissory Note. All the terms and conditions agreed by both parties relating to the purchase will be set out in this CPCV. This contract can then be legalized by registering it with the notary office (choice of the buyer). The buyer normally pays a deposit of between 10% to 30% to the seller at this stage.

In some European countries this deposit is being paid into a notary’s bank account and not the seller’s account. In Portugal the Promissory Note only becomes legally valid once the payment of the down payment is done from buyer to seller. This is common practice and not something you need to be afraid of. Your WESTMARK agent will guide you and inform you throughout the whole process.

The deposit is integral part of the contract and if the buyer defaults, he will lose his deposit to the seller, BUT if the seller defaults he is obliged to return the amount of the deposit in double.

Upon signature of the promissory contract your lawyer will release the deposit to the seller(s) or the(ir) lawyer. A date, usually 3 to 12 weeks later, is agreed and mentioned in the contract for the "Escritura" (Final deed). 

Final Deed 


The final Deed is the moment when the final contract is signed in the presence of a Notary and the title to the property transfers from the seller(s) to the buyer(s). This final deed is signed by both parties (or their representatives) in front of a public or private notary, who confirms that all documentation is in order before all parties place their signature. It is at this moment that the payment is completed to the seller.

The final contract is read aloud and, unless the buyer understands Portuguese, the content must be interpreted in the buyer’s language.  

Once the final deed has taken place, the property is legally yours, but the property still needs to be registered with the "Conservatoria do Registo Predial" (Land registry Office).