The sale contract includes the personal data of both the vendor and the purchaser, including their fiscal codes, the description of the property to be transferred with an indication of its location, its nature and its boundaries, as well as its identification at the land titles office and a number of obligatory pieces of information regarding town planning and building regulations.
The vendor must declare whether the property was built before 1 September 1967; if the building took place after that date and in any case for any building intervention after that date, there must be an indication of the date and protocol number of the permit issued and the authority that issued it (see “Rights and Obligations”).
In addition, pursuant to decree-law no. 223/2006, the parties to the contract must declare the means of payment of the agreed price, indicating what method was used (cheque and/or bank transfer), unless the payment or part of it took place prior to 4 July 2006; in which case it is not necessary to show the means of payment (see “Rights and Obligations”).
It must also be remembered that all parties to the deed must indicate, on their own responsibility, whether they have used the services of an estate agent, whether such agent was paid the relevant commission and in that case what the means of payment were (see “Rights and Obligations”).
As regards the price, for conveyances between physical persons the actual purchase price must be declared as well as the fiscal value of the asset as determined by the cadastral return; it is on this last value that the purchaser must pay registration, mortgage and cadastral taxes upon settlement directly to the notary (see “Fiscal Profile”).
Where the vendor is a building or renovation company and the building was completed in the last four years, the purchaser pays VAT directly to the vendor (see “Fiscal Profile”).
Where the asset was the subject of a preliminary contract between the parties to the definitive contract, the purchaser may recover a part of his outlay at that time (see “Fiscal Profile” and “Proposals and Preliminary Agreements”).
In the deed of transfer, furthermore, pursuant to Law 151/1975, both purchaser and vendor must declare their matrimonial property arrangements and in particular the vendor must specify whether the asset being sold is his own personal property and in what manner or by what right he came into possession of it (see “Rights and Obligations”).