Strange buying situation - Page 2 – Property & Real Estate – Expats Portugal Community Forum
Share:
Notifications
Clear all

Please feel free to view our Forum, but you must either LOGIN or REGISTER to join in the conversation.

  • Martinhall banner
  • Wow Wines Banner
  • spartan Fx

Strange buying situation

Page 2 / 2

Posts: 191
Premium Member
Topic starter
(@itexpert7)
Estimable Member
Joined: 1 year ago

Hi everyone,
Finally found a great house, large, modern, in a famous Algarve Golf resort. Now the strange stuff:

* They are not budging on the price, but the opposite they keep saying they will increase the price from 950 to 1.2 mil with the excuse that house prices are increasing and the house is undervalued (another house on the same golf resort is for 1.2)

* They haven't sold in 2 years at 950, with 6 different estate agencies. House is immaculate, T4+1, 3000 plot, nicest house I've even seen inside in my life.

* I've never met the owners in our 3 viewings. The husband is not well mentally, and apparently needs a "court of protection" decision to be allowed to sell the house.

* They sent me a contract where they ask 20%, with no expiry date, no date where they will give my deposit back double if they fail getting that court decision or if it delays too much! Only that they are obliged to sell 60 days after they get the court decision.

* The agents are pushing me to sign it, by various blah blah.

My questions:
1. Does this all make sense, sounds a bit crazy, but after seeing 50 properties this is the nicest one by far.

2. When buying a house in Portugal and giving deposit, surely there must be a time term in which they have to sell you the house, isn't it? Otherwise why wouldn't they just keep the deposit and the house with the sale "in progress" for decades?

3. What do those of you experienced with buying in Portugal think about all this?

Kind Regards,
Michael.

22 Replies




Posts: 72
Community Member
(@sonia)
Trusted Member
Joined: 4 months ago

Do not sign the contract without changing it to include the timing for the sale to be finalized.

maybe they don’t want to budge in the price because it is priced well? Their talk about incrising the price may be to make you decide fast.

Can you tell us what is the resort?

 

 

Reply




Posts: 413
Admin
(@thomasribatejo)
Reputable Member
Joined: 4 years ago

This sounds atypically messy, no doubt because of whatever the court/protection/POA situation is.  That may explain the inability to sell sooner, the absence of a date, etc.  However, it doesn't mean you have to do whatever they want/need, even if you really want the place.

You should engage a lawyer (of your own choosing, not through an estate agent) to review the proposed contract, and seek to add something to balance the risks in your favour.  

The general basis - an amount which you forfeit, if you pull out; and double that if they pull out - is pretty standard.  The money doesn't have to be a deposit (though a seller may prefer that), it could be agreed that it's paid in the event of one party defaulting (and it would be legally enforceable).  A timeline of 2 months is quite standard.

However, having that 2 months on start once something you/they can't pin down happens, cannot be reasonable.  OK, they may need a decision the timing of which they don't control - but an assessment could be made of the likely time before the decision, then add 2 months to that, for instance.  But a lawyer would be able to advise decent terms for both parties.

Ignore pressure from the agent, they aren't working for you (and probably want to see some return on two years of marketing the place!)  Their haste should not be yours.  Unless you see a genuine risk of losing the place, proceed at a pace which works for you.

Good luck!

Reply




Posts: 250
Premium Member
(@jeanne)
Reputable Member
Joined: 1 year ago

As Thomas advises, lawyer up.  The first thing your lawyer needs to confirm is the veracity of the story RE court approval  and the  incapacitated husband.  That may be just a stalling technique to see if a better offer comes in.

if it is not a stalling technique, your lawyer can advise on how long it typically takes to obtain that type of court permission. You will then be in a better position to decide if you want to wait for the court decision, and you can base your written offer on a more complete understanding of the situation. 

Reply




Posts: 141
Premium Member
(@tygger)
Estimable Member
Joined: 4 years ago

@ITExpert7 The first thing that you should do is find a reputable lawyer, surely you weren't going to deal with the purchase on your own? I would be very cautious about this, you say that the house has been on the market for two years and yet they still don't have the courts permission, don't be dazzled by the prospect of a proposed "saving" of 250,000 euro, sounds to be "cheap for a reason".

Reply
4 Replies
Premium Member
(@itexpert7)
Joined: 1 year ago

Estimable Member
Posts: 191

@tygger 
Thank you, apparently they cannot get permission until they get a signed promissory contract. I only asked them the straight-forward question of how long will it take at maximum before they return my deposit back double. And they took a month and sent me a contract that doesn't mention any time limits!

Reply
Premium Member
(@tygger)
Joined: 4 years ago

Estimable Member
Posts: 141

@itexpert7 So it seems like a chicken and egg situation, when we purchased we agreed a completion date of 3 months from when we paid the deposit, as advised by our lawyer, he's Ricardo Pica. Have you engaged a lawyer yet?

Reply
Premium Member
(@itexpert7)
Joined: 1 year ago

Estimable Member
Posts: 191

@tygger 
Will ask a lawyer I know on Monday when he is back from holiday to look at the contract and pay him for that.
Do you have a lawyer to recommend?

Reply
Premium Member
(@tygger)
Joined: 4 years ago

Estimable Member
Posts: 141

@itexpert7 Yes we used Ricardo Pica , ricardo@legalservices.pt he has an office in Almancil. There is also Paula Meireles, paulameireles@carvoeiroadvogados.com

Reply




Posts: 95
Premium Member
(@longhornlady)
Trusted Member
Joined: 1 year ago

Get a good international real estate attorney. It will be money well spent.

Reply
4 Replies
 Mads
Community Member
(@mads)
Joined: 4 weeks ago

Active Member
Posts: 5

@longhornlady Hey, just wondering about this - I just made a new thread about a land dispute and wondering how an international real estate attorney may differ to a local property advogada - weightier legal power, and as a result their fees?

Reply
Premium Member
(@jeanne)
Joined: 1 year ago

Reputable Member
Posts: 250

@mads   And what liability does any attorney actually have if they make an error (and it's your money)?  I guess there's no title insurance in PT, but is there some arrangement to compensate purchasers if their attorney misses something,?  for example, does the PT society of conveyancing attorneys (or similar) have a blanket insurance policy to cover their members?

Reply
Admin
(@thomasribatejo)
Joined: 4 years ago

Reputable Member
Posts: 413

@mads I am not sure an "international real estate attorney" is really a thing, other than a possible promotional tool to charge more. The only international dimension is the origin of one of the parties, after all. The dispute in the other post will most likely be resolved by accurate on-the-ground assessment of the site and/or existing documentation. A good Portuguese lawyer with relevant experience should be able to resolve this. Any case is unlikely to be resolved via orations in court, but by examination of paperwork.

Reply
Premium Member
(@jeanne)
Joined: 1 year ago

Reputable Member
Posts: 250

@thomasribatejo   I agree - If it concerns real estate on Portuguese territory, there is no need for an "international" anything.  International legal experts are useful when the laws of more than one national jurisdiction are involved, but it does not sound like that is the case here.

Reply




Page 2 / 2

  • Sovereign Group Leaderboard
  • Reis & Pellicano International Lawyers
  • EI Banner

To post a reply, sign up and become a member!

Premium

By becoming a valued Premium Member today, your support will help the team continue to bring you useful content about life in Portugal. You can also:

JOIN TODAYOnly €25 per year
Share:

Free

Sign me up as a Community Member today for access to the forum and social meet-ups.

SIGN UP

 

NEW Premium Plus

All the benefits of Premium Membership

PLUS unlock the Expats Portugal Plan, our comprehensive, interactive, step by step, “move to Portugal” online course hosted by Carl Munson.

JOIN TODAY

 

Premium

The first year’s donation is only €47. By becoming a valued Premium Member today, you will unlock some great privileges, freebies and perks.

Less than €4 per monthJoin Today

Copyright © 2021 Expats Portugal

Marketing by Unity Online