Country Buying Guides - Cape Verde

The conveyancing process

• Independent Lawyer
The Legal system in Cape Verde is very similar to the Portuguese legal system and as such is well established. However it remains essential to use an independent lawyer with a legal knowledge of both the English and Cape Verde legal systems, who are able to translate the documents and explain the terms to your full understanding.

• Due Diligence
It is important to carry out due diligence on the property you are purchasing in order to ensure there are no encumbrances on the property. Your independent lawyer will do this on your behalf.

• Promissory Contract
It is usual for yourself and the vendor to initially enter into a Promissory Contract (Contrato de Promessa de Compra e Venda). This Contract stipulates all the terms and conditions concerning the transaction including the price and method of payment and any deposit which is to be paid. It is signed and registered at the Notary’s Office. This Contract is legally binding on both parties. At this stage the purchaser will normally be expected to pay a deposit, which is negotiable (10% or lately 30% is common practice). The law requires the vendor to repay twice the deposit should he withdraw from the sale. Likewise, it the buyer fails to complete he forfeits the total of his deposit.

• Fiscal Number
You must ensure that you apply for, and obtain a fiscal number (Numero Fiscal de Contribuinte). This can be obtained from the local tax office (Reparticao de Finanςas). Your independent lawyer can arrange this for you.

• The Final Deed
The Final Deed must be signed by both parties in front of the selected Notary (Notario). The Notary, prior to the act will check of sale, that all the necessary documents are correct to ensure that the sale can proceed according to the facts provided. The cost of preparing and certifying the Final Deed is approximately 1.5% of the declared value plus £2. It is this document that gives the purchaser proper title to the Property. The Deed must be scheduled with a minimum of 30 days' notice.

• Registration
Once the Final Deed is prepared, and certified, the documentation is ready to be registered at the Land Registry. The cost of registration is 1.5% of the value paid or declared on the documentation. Payment is then made of the IUP/SISA tax at the Local Authority. This is 3% of the declared value and payable by the Purchaser. Once this has been completed, the purchase transaction is complete and title to the property will be correctly vested in yourself.

• Services
A contract will need to be signed with the providers of services e.g. water, gas and electric. Your independent lawyer can arrange this on your behalf. It is also advisable to arrange for final meter readings to take place prior to completion.

• Inheritance
Most foreign legal systems’ inheritance law is different to our system, hence it is extremely important to use your independent lawyer to help you make a will so that in the unfortunate event of your passing, your wishes and not the word of the law is followed.

In Assocation With The International Property Law Centre LLP