# Deposit on house in Portugal



## moebaj (Sep 30, 2015)

I have been asked by my Portuguese lawyer to pay a 30 per cent deposit into the seller's bank account and not the lawyers account,
this doesn't sound right to me, Can anyone advise please

Thanking you in anticipation


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## travelling-man (Jun 17, 2011)

I'd suggest you pay your lawyer not the seller & furthermore, don't pay a cent to anyone until the contract is signed.......... and don't forget that if you pull out after signature you lose your deposit & if the seller pulls out, he has to pay you the deposit x2.


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## paramonte (Sep 9, 2007)

Not 30% !! Deposit should be 10%


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## Jormedawson (Apr 4, 2016)

30% is the norm if your an expat and not much credit over here. If your a resident already then you can get 100% mortgages. I got offered 25% via Millennium and this is the max they will do if your not already living & employed in the country. I think Montepio do 20% deposits but not totally sure. Worth checking out though. Every bank will be different. 

Last year i went through the procedure of buying an apartment. I got told the same as you. It didnt bother me. It was all legal and signed by lawyers. 

The thing that bothered me was the mortgage was based on the valuation of the property not the asking price. For example the house might be up for 100,000euros. lets say 25% deposit. that means that 25,000 is deposit & 75,000 is mortgage. However, the valuation might be lower than the asking price so you will have to put a bigger deposit to match the 75% mortgage offered. I hope that makes sense. I hope you are aware of this as i went through a lot of admin and bureaucracy regarding this.


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## paramonte (Sep 9, 2007)

I differ on this vehemently: One thing is deposit for the contracto de promessa de compra e venda (CPCV) which should never be above 10% other thing is you paying whatever upfront extra to your bank valuation IN THE DAY you do the deed (escritura).

Ex-pat or not paying 30% without ownership it will be RISKY by all means, be it done to the owner account or the lawyer account. 

One thing that stands out sometimes is that many expats do not understand the the only thing that makes you OWNER of any property in Portugal is the escritura (deed). No other peace of paper will have the same of effect whatsoever. They are just papers that allow you to go to the courts if things go wrong were you will be struggling for many years ...


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## Jormedawson (Apr 4, 2016)

Paramoute, agreed. I forgot about that part. 10% is part that is the Promessa but it makes up part of the deposit doesnt it as its taken off the price of the house? so imagine its a 25% deposit for a mortgage, 10% for the promessa & 15% deposit at signing of the deeds?

sorry my figures above and my advice is on mortgages as thats what iv gone through. but if the OP is buying cash or outright then 10% promessa is correct. Plus all the taxes on the day of the signing. 

Would be good to know if Moebaj is going this route or buying outright as it would help us give advice.

This might help:

http://www.portugalvirtual.pt/real-estate/how-to-purchase-a-property-in-portugal.php#.V0igtJMrKDV


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