Mortgages are still difficult to obtain through Cape Verde banks, but this is changing quickly as banks are beginning to realise the need to provide more finance for their clients.
The steps to finding a property are straightforward;
Ohlsson's will ensure that the representative of the purchaser (solicitor / family member/ friend) or ourselves will obtain a tax card on behalf of the purchaser.
Sign the Promissory Contract of Purchase and Sale ("Contrato Promessa de Compra e Venda"). This is simply a contract which you sign to say that you are buying a property for a specific price. Once this is signed, the purchaser will 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.
We advise that you should only transfer the money to a developer or nominated account upon the notification of ourselves or the solicitor. This always occurs after the promissory contract has been checked and signed.
Signing for your property must occur in front of the public notary in Cape verde. The Deed of Conveyance or "Escritura" is the document that gives the purchaser the proper title to the Property. The Deed must be scheduled with a minimum of 30 days' notice. The purchaser or their representative must 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 3% 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 can assist in this process for our clients. Clients are advised to arrange for final meter readings to take placed prior to completion. Purchasing a Property top
Since the direct flights, there has been a proliferation of estate agents and developers on the islands. Make sure you use a recognised agent that works out of an office. Presently there are numerous 'agents' working from bars, home and even some taxi drivers from their cars. While we advise you speak to as many people as possible to get a broader picture of the islands, please seek professional investment advice to avoid being mislead. While Ohlsson Properties suggests that you seek out developers directly, we also know that more and more developers are seeking agents to take care of their sales. This is due to the time devoted by agents to look after clients needs. Its not that we can do it better than the developer, it is just that the developer is in need of the time for organising and planning construction. There are numerous property developers in Cape Verde. It is, therefore, important to check their standards of construction. We have experienced many stories of buildings where electric cables go unchecked and water pipes not connected to the right taps or meters. If you want to check out any of the construction, feel free to email us at info@ohlssonproeprties.com Our knowledge and experience over the last couple of years may help you to avoid potential problems in the future.
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