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Property Deed in Portugal

The deed is an essential part of the property purchase process in Portugal, as it is the final step. After signing the deed, your new home or investment is officially yours. But how does it go? How much does it cost? Who is responsible for the booking? Who will be involved? What do you need to have prepared for the day? Before buying a house in Portugal, it’s important to get familiar with the workings of the property deed. We explain everything here!

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What is the property deed?

The deed is the act that establishes the acquisition and selling of property. It is the final stage of the procedure and is carried out through a contract. It is typically preceded by a promissory contract of sale (CPCV), in which an amount is paid in order to show interest in purchasing the property. This document specifies a deadline, which is followed by the execution of the deed, if the buyer so desires. If you do not proceed with the purchase, you forfeit your entitlement to the down payment.

Both parties (buyer and seller) must be present on the day of the deed in order for it to be signed. The document is signed in front of a competent person who authenticates its legality, thereby attesting to the acquisition and sale of the property.

The deed of sale and mortgage loan can be divided into two parts:

  • The contract of purchase and sale, which is when the buyer becomes the legal owner of the property;
  • If the house is purchased with a mortgage, a mutual agreement document outlining all loan-related actions. Only at this time does the bank disburse the amount requested by the customer for the property purchase.
property deed portugal
Vacation houses in Quinta do Lago, Algarve, Portugal

What documents are required for the deed in Portugal?

When you draw up the promissory contract of sale (CPCV), you should start organising the various documents needed for the deed, if you haven’t already done so. These are the documents you need to deed a property:

  • Civil and tax identification documents for the parties involved;
  • Promissory contract for the purchase and sale of the property;
  • Caderneta Predial Urbana or Pedido de inscrição do Prédio na matriz (Modelo I IMI) issued by the Tax and Customs Authority;
  • Licence to use;
  • Housing Technical File;
  • Energy and Indoor Air Quality Certificate for Buildings;
  • Certificate of content;
  • Infrastructure certificate;
  • Mortgage waiver;
  • Toponymic certificate;
  • Payment of IMT (Municipal Property Transfer Tax);
  • Payment of Stamp Duty.

Where can I sign the property deed?

Nowadays, a property deed can be done in person or online. These are the places where you can have the deed done:

  • Notary Public Offices;
  • Land Registry Offices;
  • Casa Pronta Service;
  • Casa Simples Casa Segura service.
How much does the deed cost?

All the costs associated with the deed are normally borne by the person buying the house. There is no exact value that we can assign to this process, as it depends on a number of factors, namely:

  • The purchase price of the house;
  • Whether it’s a first or second home;
  • Costs associated with paying stamp duty on the transaction;
  • Stamp duty on the loan;
  • Registration of the deed;
  • Costs associated with the services of the ready house, registry office or notary;
  • Costs associated with paying IMT (IMT = Deed Value or Taxable Asset Value (whichever is greater) x Rate to be applied – Portion to be deducted.
  • Place where the deed will be done.

How long does it take to sign a deed for a house?

A deed, on average, has a time associated with it. It might take either more or less time depending on how long it takes to complete the various phases of purchasing and selling a property. But you can make an estimate:

  • Obtaining the certificate of title or matricial certificate – 5 to 20 days;
  • Housing license – 7 to 30 days;
  • Purchase and sale agreement – 7 to 30 days;
  • Signing the deed – 14 to 90 days;
  • Registration at the land registry after the deed – 30 days.
What types of deeds exist?

There are several types of deed, which differ according to the purpose and type of transaction. When we talk about types of deed we can talk about:

  • Deed of sale – the most common and well-known;
  • Deed of sale using a financial institution – the same as above but with bank intervention, due to the need for a mortgage;
  • Inherited property deed – the deed is usually carried out by the organizations mentioned above. The property must be in your name before you can sell it. It’s important to take care of this before selling an inherited house;
  • Deed for property under construction – A deed is signed between two parties and can be an advantageous deal as it is usually a cheaper purchase, the property is new and you have more time to plan. (However, it also has its disadvantages: the work may not be completed or may be completed later than planned and the finishes may be different from what you had idealized);
  • Deed of donated property – the process is the same but there is no associated property value, i.e. there is no cost to the buyer when purchasing the property;
  • Deed for exchanged property – the deed consists of exchanging properties and may or may not have a value attached, depending on the values of the properties. If they have different values, the party to whom the property with the lower value corresponds will have to pay the remaining value.
Frederik Pohl
Frederik Pohl, CEO
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