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Cape Verde - Buyers Guide |
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When buying we strongly recommend you to instruct a local lawyer to ensure that all is in order. If dealing with a new development it must be checked that the plot/land is suitable for building purposes, i.e. zoning restrictions, building regulations, access to an official road, availability of water and electricity supply, telephone lines.
In the case of purchase of an apartment or house the lawyer needs to check building planning and other permits, the history, reputation and reliability of a developer and the title to the property.
The process of purchasing property in Cape Verde generally involves the following steps:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. Services A contract needs to be signed with the providers of services, such as water, gas and electricity. |
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