I?ve just been advised by my solicitors that the property I intended to purchase in the Algarve is situated in a natural park and that the seller cannot dispose of it. In fact, according to the president of the Camera, the building should be demolished but if that happened the seller would have nowhere to live.

The property was procured through a firm of estate agents. The 20 % deposit was duly paid over to the seller and the relevant promissory contracts signed by both parties.
The whole business has taken 10 months filled with excuses of all sorts whenever any relevant documentation was required, and not produced.

Sales contracts of this type I am given to understand, run on the premise that if the buyer reneges on the contract he forfeits his deposit. Likewise, should the seller not be able to go ahead, double the deposit is returned to the prospective buyer.

My solicitor has since advised me that this is in fact not the case and if double the deposit is required, you have to sue the seller in the courts. And we all know how swiftly the wheels of Justice move in Portugal.

My big worry at the moment is what happens if the seller has in fact not got the funds to return my original deposit. Note, I refer only to the original deposit. The seller could have spent it, lost it in any number of ways, and even the prospect of taking him to court to regain these funds could come to nothing if he declares he has no money, and that the property cannot be sold for obvious reasons.

As I said, all this was arranged through an estate agent. I would have expected that something as vital as a property being situated in a natural park would have immediately disbarred it from even being on their books. In fact I believe there is legislature somewhere that states that all proper documentation has to be in order before estate agents can even begin to process property like this.

My question is the following. If I do encounter problems in regaining my original deposit from the seller, do I have any come back on the agents? Does anyone know what the legal position is regarding a situation like this? Any hints or tips would be most welcome, especially if you have been in a similar situation.
Thanks
Jaylin

HI, I usually buy property in the UK but I am aware that the property law in Portugal is similar to that in Scotland and your Solicitor I am sure will be correct in saying that to get your deposit back you will have to go through the courts. However, when you purchased the property did you instruct a Solicitor at the promissory note stage? If so then I am assuming that the Solicitors must have carried out searches for you on the property you wanted to purchase and the searches should have revealed all the relevant information on the property. If not and you used the estate agent, then I am not sure how or even if the estate agents in Portugal are regulated (as they are in the UK) but I would at least have expected them to have an insurance indemnity to claim against. Did you have a valuation carried out on the property?

If the owner still has the money and he will it give it back as you say at least your deposit without having to going to court, then this may be the best that you can hope for with out having to pay more legal costs. Has anyone asked them if they have the money to give back to you? If he does not have the money to give back to you, then you are obviously going to have to go legal with them. You can look at your options as to whether you sue the Solicitor (if you originally instructed them at the beginning of the purchase - if not then you can't sue them) or you can sue the estate agent and the vendor (owner of the property). when attempting to sue a company or person, you must be satisfied that the Solicitor you appoint is acting for your interests only and is on your side (particularly as you are in a foreign country) - see if there is a way in which you can expedite it and monitor the dates yourself, keep chasing it, don't rely on the Solicitor to keep coming back to you to push it forward the next step. You will have to keep pushing the Solicitor forward. Ask around see if anyone can recommend a good litigation solicitor preferably with convincing knowledge.

In the Uk you can put a caution against a property (different to a charge) this is legally registered at the land registry. So for example if someone was going to sell a property that you had a caution against, you would be immediately notified by land registry of a pending new sale and also the new purchasers would also become aware of the caution through a search on the property. So if they have this in Portugal, protect your interest whilst you are taking them to court. It shouldn?t cost much do it.

I know of a solicitor in Albufeira, who is Filomenta Duarte, she does convincing (not sure about litigation), she is Portuguese, but very upfront, straight to the point about everything. She may be able to help, just give anyone and everything at shot at this stage to get your money back. Hope this helps!
Thanks
Jaylon