Cape Verde Property buying guide
The process of purchasing property in Cape Verde generally
involves the following steps:
- Carry out Land Charges
Searches at the local Municipal Authority and Land Registry
Offices.
These will reveal whether there are charges registered
upon the property or any restrictions on title. The existence of
a valid habitation permit is a precondition for a valid
conveyance of built property to take place in Cape Verde and the
existence of such permit presumes that a valid building licence
was issued previously.
The documents which should be obtained are the "Certidao do
Registo Predial" (land registry certificate), "Planta de
Localizacao" (official map with the property's exact location)
and the "Certidao Matricial" (tax information certificate).
If the property is not registered, it is necessary to obtain a "Certidao
pela negativa" (a certificate confirming that the property in
not registered in anyone's name) and a "Certidao matricial para
o efeito" (a tax certificate confirming this). With these two
documents, it will be possible to register the property.
- Check the payment of tax
regarding the property, and bills for electricity and other
services by asking the vendor to produce evidence of
payment of such invoices.
- We will also need to obtain a
power of attorney from
you to represent you in the promissory contract and deed, and
also to request the necessary tax cards on your behalf. We will
draft the power of attorney in Portuguese and attach a
translation to English for your perusal.
This document will have to be signed before a Notary and duly
legalised by the Cape Verde Honorary Consul in Liverpool before
it is returned to us. Please note that we may deal with the
legalisation of this document on request.
- Obtain a tax card on
the purchaser’s behalf.
- Sign the Promissory Contract
of Purchase and Sale ("Contrato Promessa de Compra e
Venda").
At this stage the purchaser will normally be expected to pay a
deposit, which is negotiable (10% or lately 30% is common
practice).
In Cape Verde, the parties are contractually bound on signature
of this Promissory Contract of Purchase and Sale, which sets out
the terms of the transaction (property details, price, method of
payment, completion date, warranties, penalties, etc.).
This contract should be signed before a Notary Public in Cape
Verde. Until such contract is exchanged the vendor is not
committed and can change his mind.
Payment of the property tax called
"IUP" tax, respecting the
transfer.
- Sign the final Deed of
Conveyance called the "Escritura" which has to be done
before a Notary Public in Cape Verde. This is the document that
gives the purchaser proper title to the Property. The Deed must
be scheduled with a minimum of 30 days' notice.
- Register the purchase
at the local Land Registry and local Municipal Authority so that
title is enforceable against third parties. In Cape Verde,
subsequently to the signature of the Deed, the Notary will
prepare and send a report to the local Municipal Authority
regarding the transaction. The Municipality will then update its
records accordingly and register the new ownership of the
property.
- Notarial and registration fees and stamp duty can be
expected to be approximately 2.5% of the property's attributed
value. They are payable on signature of the Deed of Conveyance.
- Services A contract
needs to be signed with the providers of services, such as
water, gas and electricity. We do not normally arrange this for
clients, but can assist on request. Clients are advised to
arrange for final meter readings to take placed prior to
completion. “Please insert below under legalities and change
name of tab to Taxes in correct font”
|
