Buying Property in Portugal: Legal Due Diligence Checklist

Buying property in Portugal is not just a question of confirming who owns it. A proper buyer-side review should answer a wider question: are you buying the property you think you are buying, with the legal position you expect to receive at completion?

Before signing a CPCV or transferring a substantial deposit, check the legal file against the physical property, the agreed deal and your financing.

What should be checked?

A review normally starts with the Land Registry, tax record, seller authority, mortgages and charges, use licence or applicable exemption, energy certificate, condominium documents and the proposed CPCV.

Additional checks depend on the property. An apartment, renovated building, rural property and newly built unit do not have the same risk profile.

Registry, tax and physical property

The Land Registry can show the registered owner, property description, mortgages, attachments, usufruct and other registered rights or burdens. The caderneta predial contains the tax description and taxable value.

The records should be compared with each other and, where relevant, with the actual property. Enclosed terraces, converted garages, added rooms and other alterations can require closer review.

A beautiful renovation does not prove legal regularity. Technical or architectural review may be needed alongside legal due diligence.

Use licence and building history

Depending on the property and its history, the file may include a use licence or evidence of a legal exemption.

Recent Portuguese simplification measures changed some transaction formalities. Buyers should not interpret the removal of one documentary formality as proof that the building is fully compliant.

Condominium

For a condominium unit, review the building as well as the apartment.

Useful information can include the condominium charge declaration, recent meeting minutes, approved works, extraordinary contributions, litigation, insurance and building-level problems.

Portuguese law requires a written declaration from the condominium administrator showing the unit's charges and debts for the sale. A buyer can waive that declaration, but if the buyer expressly accepts the transaction without it, the buyer can become responsible for the seller's condominium debts.

Seller authority and charges

Check whether the seller is the sole owner, a co-owner, a company, an heir or someone acting through a power of attorney. Marital status can also affect the authority required for a sale.

A seller's existing mortgage does not automatically prevent the sale, but its cancellation and payment mechanics should be organised for completion.

Rights of preference

Certain transactions can be subject to statutory rights of preference.

Portugal's Casa Pronta service allows publication of the essential sale terms so public entities with a legal right of preference can exercise it. The current official fee for one online announcement is €15.

CPCV, deposit and mortgage

The CPCV is normally the point where the buyer takes on serious contractual obligations. Legal due diligence should ideally happen before signature.

Read:

• CPCV in Portugal: What Buyers Should Check Before Signing
• Property Deposit in Portugal
• Buying Property With a Mortgage

Common mistakes

• signing the CPCV before reviewing the property;
• assuming the bank has checked everything for the buyer;
• ignoring condominium liabilities;
• waiving the condominium debt declaration without understanding the consequence;
• paying a large deposit without financing protection.

How THE-Ö can help

We act for buyers independently from the seller and estate agent.

Our work can include legal due diligence, registry and tax review, condominium review, CPCV drafting or review, financing conditions, deposit protection, powers of attorney, completion and post-completion registration.

Buying property in Portugal and want the legal file checked before you commit?

Send us the property link, draft CPCV if you have one and any documents already provided by the seller or agent.