Before buying a property in Portugal | Real estate due diligence

Introduction

At the outset, we warn you not to make any payment or sign any document before the step below.

This article was written by a lawyer, used to practicing real estate law in Portugal. The text is simple and objective, to facilitate the reader’s understanding.

Below we will mention the documents that must be analyzed (obligatorily) before buying and selling a property. Due to the complexity of the analysis, it is usual and recommended that the analysis be done by a lawyer experienced in real estate law. But, it is important that the buyer knows, at least, basically.

Land registry (certidão de registro predial) and building booklet (caderneta predial)

The first step in analyzing a safe property purchase is the analysis of the land registry certificate (in Portuguese: certidão de registro predial) and the building booklet (in Portuguese: caderneta predial). As already said, it is an indispensable analysis and should be the first step.

How to obtain the land registry certificate (certidão de registro predial) of the property?

Our office does the research and the request for the land registry certificate (certidão de registro predial). However, the following data is required

• the description number (the number that the building has in the land register) or the article of the matrix (the number under which the building is registered with the finances) and the nature of the article (rustic or urban);
  
• if it is an autonomous fraction (an apartment, for example) the letter identifying the fraction/unit of accommodation
  
• the neighborhood (freguesia) and municipality where it is located (you must indicate the neighborhood and municipality mentioned in the document from which you took the description number or the article from the matrix).

You can obtain this information from the Promissory Contract of Purchase and Sale – (In Portuguese: “Contrato Promessa de Compra e Venda” – CPCV) . In fact, the CPCV must mention the data mentioned above.

Fee: The cost varies according to the type of certificate, but can be 18€.

How do I obtain the “caderneta predial” of the property?

Our office will search for the land register of the property. However, the following information is required:

• Neighborhood (freguesia in Portuguese):
  
• Type of building (urban or rustic)
  
• Matricial article
  
• NIF/NIPC of the owner

It is possible to obtain this data through the Promissory Contract of Purchase and Sale (CPCV).

By law, only lawyers can write or review contracts in Portugal

According to the legislation of Portugal, only lawyers can provide legal consultation or legal advice on property purchase and sale contracts.

The contact of the buyer (client) must be direct with the lawyer. There can be no intermediaries, such as real estate agents, “legal department”, real estate consultant etc.

Real estate consultants and real estate agents must limit themselves to making the commercial approach of the buyer and the seller.

Thus, any professional or company offering a contract analysis to a client – other than a lawyer – is committing an illegality in Portugal (Law nº. 49/2004, of August 24)

Real estate due diligence in Portugal

Before buying a property in Portugal (or in any country) the buyer must take due care. This care involves a detailed analysis of the property documents, among other analyzes and investigations. This is what we call real estate due diligence.

Obviously, due diligence can become more complex, depending on the case and the parties’ requirements. For example, there are cases where the parties hire engineers and/or architects for a technical analysis about the construction of the property. This analysis is also important to assess the housing license (or license of use) of the property, which is issued by the Municipality.

Adriano Martins Pinheiro is a lawyer in Portugal, writer and certified trainer.

tags: property purchase and sale, due diligence, purchase and sale agreement, property documents, portugal .