Once you've found your perfect property and your offer has been accepted, you will have to sign a contract with the owner (Promissory Contract -promise of purchase-sale) this is a contract that promises that you will buy the property, and the owner promises to sell it at the agreed price and date.
At this point you will be asked to pay a deposit, (usually 10% of the total purchase price), and date for the final deed (to complete the purchase) will be agreed upon.
Should you be unable to finalize the purchase of the property on the specified date, you will lose your deposit, on the other hand should the owner fail to complete the sale they will be liable to repay twice the value of the deposit you have paid.
We recommend the promissory contract be drawn up by a lawyer in the Algarve to ensure that all relevant details of the purchase such as dates and final purchase values are contemplated in it before you sign and pay the deposit.
If you choose to accelerate their purchase of the property, you can pay the full price of the property at once, making a promissory contract not necessary. If you choose to do so, we recommend that you discuss it with your lawyer previously.