Real Estate Due Diligence Support

Real estate due diligence in Portugal refers to the process of thoroughly investigating a property before purchasing it. This includes reviewing legal documents, inspecting the property, and researching any potential issues or red flags. It is important to conduct due diligence to ensure that the property is in good condition and that there are no hidden problems or liabilities. A lawyer or real estate agent with experience in the Portuguese market can assist with the due diligence process.

A property lawyer in Portugal, also known as a real estate lawyer, is a legal professional who specializes in helping clients navigate the legal aspects of buying, selling, and owning property in Portugal. They can assist with tasks such as reviewing and drafting purchase and sale agreements, conducting due diligence, and handling the transfer of ownership. It's highly recommendable to hire one, since the Portuguese property laws can be complex and the process of buying a property in Portugal may be different than in other countries. They can also advise on local taxes and regulations that may apply to the property.

What are the steps to buy a house in Portugal?

The steps to buy a house in Portugal generally include the following:

Find a property: Search for properties that meet your needs and budget. You can do this online, with a real estate agent, or by visiting properties in person.
Make an offer: Once you have found a property you are interested in, make an offer to the seller. The offer should include the purchase price and any contingencies, such as a home inspection or financing contingency.
Sign a preliminary contract: Once the seller accepts your offer, you will sign a preliminary contract, also known as a "promise of sale" or "compromise of sale" contract. This contract will outline the terms of the sale and will be binding on both parties.
Due diligence: Before signing the final contract, it is important to conduct due diligence on the property, including reviewing legal documents, inspecting the property and researching any potential issues or red flags.
Sign the final contract: After the due diligence process is complete, you will sign the final contract, known as the "deed of purchase" or "escritura de compra e venda". This contract will transfer ownership of the property to you.
Pay the purchase price: Once the final contract is signed, you will pay the purchase price for the property, either in cash or through financing.
Register the property: After the purchase price is paid, the property will be registered in your name at the local land registry office.
Obtain NIF (fiscal number) and open a bank account: After buying a property in Portugal you will need to get your fiscal number and open a bank account, since all your bills and taxes will be settled by these means.
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Note: The steps and process may vary depending on the specific property and circumstances, and it's advisable to seek the assistance of a property lawyer who can guide you through the process.

I am buying a house in Portugal. How to move ahead?

Buying a house in Portugal can be a complex process, especially for foreign buyers who may be unfamiliar with the local laws and regulations. Here are some key things to keep in mind when buying a house in Portugal:

Hire a property lawyer: It's highly recommended to hire a property lawyer, also known as a real estate lawyer, who can assist with tasks such as reviewing and drafting purchase and sale agreements, conducting due diligence, and handling the transfer of ownership.
Obtain a NIF (fiscal number): Before buying a property in Portugal, you will need to obtain a NIF, which is a Portuguese tax identification number. This is required for various legal and financial transactions in Portugal, including buying a house.
Open a bank account: You will also need to open a bank account in Portugal, since all your bills and taxes will be settled by this means.
Understand the property market: Portugal is a popular destination for foreign buyers, and prices can vary depending on location, property type, and other factors. It's important to understand the local property market and to set a realistic budget.
Research the area: Before making a purchase, research the area where you want to buy, including local amenities, transportation links, and any potential issues or red flags.
Be prepared for additional costs: In addition to the purchase price of the property, there are additional costs to consider such as legal fees, property taxes, and costs associated with obtaining a mortgage.
Be prepared for the bureaucracy : Portuguese bureaucracy can be slow and complex, so be prepared for delays and to provide a lot of documentation.
Check for legal compliance: Make sure that the property has all the necessary licenses and permits, and that it complies with all local building and zoning regulations.

It's important to note that the process of buying a house in Portugal may be different than in other countries, and it's advisable to seek the assistance of a property lawyer who can guide you through the process.

The public deed in Portugal

If you are thinking of buying or selling a house, this article is for you. If you are selling or buying a house, you have to meet several legal requirements. Through the various government offices, you could get the missing documents for the day of the deed.

With the help of your lawyer, the whole burucratic process becomes easier. See here all the steps to take for the realization of a deed.

First off all, you will need a tax number, and for that a lawyer to do that. After you have your portuguese tax number, you need to open a banck account in Portugal. Once this is over, you could proced for the preparation of the deed. For the preparation of the deed you will need a several of documents, if you are the seller side.

The public deed is the moment when you pay taxes if you are the buyer or give the keys and propriety if you are the seller and its made by a notary , lawyer or a solicitor.

Who executes the deed?

In Portugal, public deeds are usually executed by a notary public (notário público). The notary must be registered with the Portuguese Bar Association (Ordem dos Advogados) and have a professional liability insurance policy.

The notary will first check that the parties have the legal capacity to enter into the contract. This means that they must be of legal age and have the mental capacity to understand the contract's terms and conditions.

The notary will also ensure that the contract complies with Portuguese law and that there are no legal restrictions on its execution.

Once the notary is satisfied, the parties will sign the contract in front of him or her. The notary will then certify the signatures and issue a certificate of execution (certificado de execução).

The contract will be registered in the Central Registry of Deeds and Documents (Registo Central de Atos e Documentos). This is a public database that anyone can access.

The registration fee must be paid before the deed can be registered. The fee is based on the contract's value. Once the deed is registered, it is legally binding on the parties. The contract can be enforced by the courts if either party breaches its terms.

Documents Required for Executing a Public Deed in Portugal

A valid ID document, such as a passport or ID card, for each party

If the parties are married, they may have to provide their marriage certificate

If the contract involves the sale of property, the parties must provide proof of ownership, such as a title deed

If the contract is for the provision of services, the parties must provide a description of the services to be provided

When to Use a Public Deed

Public deeds are typically used for contracts that involve the sale of property, the transfer of ownership of a company, or the provision of services.

They can also be used to execute wills and trusts and to record Powers of Attorney.

Advantages of Using a Public Deed

The main advantage of using a public deed is that it creates a legal record of the contract. This can be helpful if there is ever a dispute between the parties.

Another advantage is that public deeds are typically executed by notaries, who are impartial third parties. This can give the parties more confidence that the contract will be executed properly.

Talk to a Commercial Law and Public Deed Lawyer in Portugal

If you are entering into a contract that will be executed as a public deed, it is important to understand the rules and procedures that apply. A lawyer with experience in commercial law and public deeds can advise you on the best way to execute your contract and protect your interests.

Clara Silva Costa Lawyers is an English-speaking law firm based in Lisbon, Portugal. We can help you with all aspects of commercial law and public deeds, from drafting the contract to registering the deed.