Buying Property in Portugal Horror Stories: Buyer’s Agents Tell All

Horror Stories of Real Estate Deals

In this video, the speaker shares some extreme cases and horror stories from their experience as buyers' agents in Portugal. The purpose is to help viewers identify signals and avoid deals that are unlikely to happen.

Horror Story 1: Seller's Request for Post-Sale Use

• The speaker had a deal for a small villa near the sea in southern Portugal.

• When everything was agreed upon and ready to sign the contract, the seller requested the right to spend two weeks per year in the property after selling it.

• Negotiations took place, starting from two weeks and eventually declining to zero.

• The seller even suggested being paid for using the property, but it was rejected.

• Eventually, the seller understood that her request was unreasonable.

Horror Story 2: Losing a Deal Due to Preference Right

• In Portugal, there is something called "Preference Right" where buyers need to announce publicly how much they are buying a property for before the deed happens.

• The speaker had a deal for a Golden Visa property and while preparing the promissory contract, they also made this announcement.

• However, due to rustic land attached to the property, registered mail needed to be sent to surrounding neighbors giving them preference rights.

• Two neighbors made full cash offers on the same day with the negotiated price, resulting in losing the deal for their client.

Horror Story 3: Property Registration Error

• A very old property divided among heirs was being sold.

• During registration at the conservatory, only the upper floor was included in documents while forgetting about registering the ground floor.

• This led to an incorrect representation of half of its actual size on official documents.

• Notaries did not allow proceeding with this error during deed preparation.

Conclusion

The video highlights some challenging situations faced by buyers' agents in real estate deals in Portugal. It emphasizes the importance of being aware of potential red flags and signals to avoid wasting time and emotional investment in deals that may not materialize.

Official Two Bedrooms

The speaker mentions that there were two official bedrooms in a property, while the third one was illegal.

Property with Illegal Bedroom

• The speaker states that they encountered a situation where one of the bedrooms in a property was illegal.

• This information is shared to highlight an unprofessional experience with an agent.

Unprofessional Agent Experience

The speaker shares their frustration with an unprofessional real estate agent they dealt with in Portugal.

Horror Story with Unprofessional Agent

• The speaker describes their encounter with an extremely unprofessional real estate agent.

• They express their anger and disappointment towards this agent, as they had previously had positive experiences with other agents from the same agency.

• The speaker emphasizes the importance of professionalism and adherence to a code of conduct in the real estate industry.

Verbal Agreement and Legal Documents

The speaker explains the process of reaching a verbal agreement and gathering legal documents after agreeing on terms with a seller in Portugal.

Verbal Agreement and Promissory Contract

• In Portugal, when an agreement is reached between buyer and seller, it is considered a verbal gentlemen's agreement.

• After this step, legal documents are collected, and discussions take place regarding drafting the promissory contract.

• This process occurs under the assumption that both parties are proceeding with the deal.

Rushed Purchase Situation

The speaker describes a situation where their clients, a young couple, urgently needed to purchase a property due to already relocating to Lisbon.

Urgency in Buying Process

• The clients have already moved to Lisbon with many belongings and are staying temporarily in an Airbnb with a toddler and two dogs.

• Due to their circumstances, the clients are in a rush to find and purchase a property.

• The speaker mentions that the clients require a mortgage for their purchase but have a good budget.

Agent's Lack of Communication

The speaker recounts an incident where an agent suddenly stopped responding after initial agreement on a property.

Lack of Communication from the Agent

• After finding a suitable property and reaching an agreement, the agent requested the clients' identification and initiated discussions about drafting the promissory contract.

• However, the agent abruptly stopped responding, causing concern for the speaker and their clients.

• Efforts were made to contact the agent through various channels, including reaching out to her management.

Unprofessional Behavior of Agent

The speaker reveals that while they were in the process of finalizing legal documents, the agent showed the property to other potential buyers without informing them.

Unprofessional Actions by Agent

• Despite having an agreement with both the speaker and their clients, the agent continued showing the property to other potential buyers.

• Eventually, she made an agreement with someone else who took over the deal intended for their clients.

• This behavior was considered highly unprofessional as it disregarded any opportunity for alternative arrangements that could have saved the deal for their clients.

Complaint against Agent

The speaker explains how they filed formal complaints against this unprofessional agent.

Filing Complaints

• The speaker decided to make official complaints against this agent to both the Real Estate Agents Association and her agency's master franchise.

• They express their anger towards her actions and emphasize that such behavior is not acceptable in conducting business.

• The motivation behind filing these complaints is to address the unprofessional conduct and protect future clients from similar experiences.

Agent's Excuse for Unprofessional Behavior

The speaker shares the agent's excuse for her unprofessional behavior, which involved a contingency clause related to mortgage applications.

Agent's Explanation

• The agent justified her actions by stating that they always push for a term in mortgage applications.

• If the bank appraisal does not match the expected value, they prefer the deal to fall through rather than putting their clients at risk.

• The agent claimed that other buyers did not have this contingency clause, which influenced her decision to proceed with another buyer without informing the speaker or their clients.

Power Dynamics in Real Estate Transactions

The speaker reflects on the power held by seller agents and highlights how owners may be unaware of behind-the-scenes activities.

Power Dynamics and Lost Deal

• The speaker expresses frustration over losing the deal for their clients due to the unprofessional actions of the agent.

• They emphasize that seller agents hold significant power in real estate transactions, potentially influencing outcomes without owners' knowledge.

• Despite this setback, they remain actively engaged in searching for alternative options for their clients.

This summary provides an overview of key points discussed in the transcript. It is important to refer back to the original transcript for complete accuracy and context.