Documentation
The documentation that is required for an acutal transaction is:
- Bilhete de identidade/passaporte (Passport or a Portuguese ID document)
You will need to provide your lawyer with copies of your passport or Portuguese ID to be able to sell a property in Portugal. (Required for each person stated on previous "Escritura" (Final Deed-title) and on the "Certidão de Teor" (Land Registry)
- Número de contribuinte (NIF) (Fiscal Tax number)
Anyone wishing to sell a property in Portugal has a Fiscal Number (required for the purchase) from the "FINANÇAS" (Tax Department).
- Caderneta predial (Tax/financial Registration)
This document is issued by the "FINANÇAS" (Tax Department) and shows the financial registration of the property and the rates and taxes payable by this property to the local council. In the case of a rural property the "Caderneta Rústica" is also required. This needs to be an updated copy as each issue is valid for a limited time only (6 months), in case of property transactions.
- Certidão de teor (Property registration certificate/Land Registry)
Shows who the registered owner of a property is and if there are any outstanding loans /mortgages on the property, as well as details of the property like constructed area, plot size etc. Obtainable from the "Conservatoria do Registo Predial" (Land registry Office ). This needs to be an updated copy as each issue is valid for a limited time only (6 months), in case of property transactions.
- Licença de habitabilidade/utilização ou construção
(habitation/construction license required for property built after 1951) Issued by the "Câmara Municipal" (Town Hall) and shows that the property has been built according to the approved plans and for the purpose of habitation. No property can be sold without it.
- Ficha técnica (Property Technical file)
This document is provided by the "Construtor" (Developer/Builder). This is a fairly new requirement (2004) and is the detailed file (ID) of the property construction; suppliers, materials used and all the technical data of the construction process.
- Energy certificate
As per the new law, all properties being transacted will need to have a Energy Certification confirming that the property conforms to the energy board requirements.
- "CPCV - Contrato de Promessa de Compra e Venda" (Promissory Contract)
A CPCV (Promissory Contract) is usually signed after searches by your lawyer (normally within one month of the deposit being made). There are specific laws regulating to this act (a Lawyer will be able to explain in detail), but we can provide some basic information as follows:
- Once the price is agreed to and the documents are in order, both parties will sign a "CPCV - Contrato de Promessa de Compra e Venda" (Promissory Contract). All the terms and conditions agreed by both parties relating to the purchase will be set out in the CPCV. This Contract is then legalised by registering it with the Notary Office. The buyer normally pays a deposit between 10% to 30% to the seller at this stage. With regards to the deposit, the Portuguese law is quite clear i.e. if the buyer defaults, he will loose his deposit to the seller, BUT if the seller defaults he is obliged to return the deposit paid in double to the buyer.
- Before signing the CPCV (Promissory Contract), your lawyer will check the current ownership of the property and ensure it is free of charges and debts. The vendor must be up to date with the payment of all charges (such as mortgages) or debts (such as utility bills) and must sell the property with vacant possession. If you require financing for your property, an extra clause can be added into the "CPCV - Contrato de Promessa de Compra e Venda" (Promissory Contract) stating that the contract is subject to mortgage approval (if this is mutually acceptable).
- Upon signature of the promissory contract your lawyer will release the deposit to the purchaser or their lawyer. A date is agreed to for the signing of the "Escritura Pública" (Final Deed-title), usually 3 - 12 weeks after signing the CPCV - (Promissory Contract). Once completed and the property has been registered with the "Conservatoria do Registo Predial" (Land registry Office), it is legally yours. In order to buy a property in Portugal, you will need an NIF number (Fiscal Tax number). Note: With your fiscal number you can open a bank account, buy property or a car and pay tax.
- Once the price is agreed to and the documents are in order, both parties will sign a "CPCV - Contrato de Promessa de Compra e Venda" (Promissory Contract). All the terms and conditions agreed by both parties relating to the purchase will be set out in the CPCV. This Contract is then legalised by registering it with the Notary Office. The buyer normally pays a deposit between 10% to 30% to the seller at this stage. With regards to the deposit, the Portuguese law is quite clear i.e. if the buyer defaults, he will loose his deposit to the seller, BUT if the seller defaults he is obliged to return the deposit paid in double to the buyer.
- Escritura (Final Deed)
Not applicable - paid by the buyer
Please note: These are for guidance only and we cannot accept responsibility for any mistakes or misinformation. We strongly recommend Legal and Fiscal Consultations at all times prior to any transaction as the laws are constantly changing.
