Buying a home: what to check before signing the preliminary contract
Before paying a deposit, certain documents show whether the property has debts, encumbrances or licensing problems. A practical checklist for buyers, Portuguese and foreign.
When buying a home, most problems can be avoided before signing the preliminary contract (contrato-promessa de compra e venda, or CPCV), by checking a few documents.
Documents to request and check
- Land registry certificate (certidão permanente do registo predial): confirms who the owner is and whether there are mortgages, attachments or other encumbrances;
- Property tax record (caderneta predial, issued by the Tax Authority): tax description and taxable value of the property;
- Occupancy licence (licença de utilização), or a document confirming that it is not required;
- Technical housing file (ficha técnica da habitação), for properties where it is required;
- Energy performance certificate;
- in buildings under horizontal property, a statement from the condominium on the charges and debts of the unit.
The deposit
A deposit (sinal) is usually paid when the preliminary contract is signed. As a rule, if the buyer withdraws without good reason, the deposit is forfeited; if the seller fails to perform, they must return twice the amount (Article 442 of the Portuguese Civil Code).
For this reason, the preliminary contract should clearly set out the deadlines, the terms of the transaction and the consequences of any breach or missing documentation, safeguarding the interests of both parties.
Taxes and completion of the purchase
Before the purchase is completed, Property Transfer Tax (IMT) and Stamp Duty are paid, calculated on the purchase price or on the taxable value of the property, whichever is higher. The purchase may be completed by public deed, by an authenticated private document or at a Casa Pronta desk.
At RM Advogadas, we also assist with the tax obligations associated with the purchase.
Foreign buyers
To buy property in Portugal, a Portuguese tax identification number (NIF) is required. At RM Advogadas, we assist foreign buyers at every stage of the purchase, in person or remotely, from the initial checks to the completion of the purchase.
Before signing
Before making any commitment or payment, it is essential to check the legal and documentary status of the property and to know all the terms of the transaction. Legal support from the outset allows you to make informed decisions and prevent future risks.
This article is for information purposes only and does not replace legal advice on your specific case.
Applicable under Portuguese law.
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