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Property Legal Due Diligence – Essential Checks Before Buying in Portugal
Before signing a Promissory Purchase Contract (CPCV), thorough legal verification is crucial to avoid hidden liabilities. Here’s what ProDirecta investigates for every transaction:
1. Property Land Registry Certificate (Certidão de Teor Predial)
Issued by: Land Registry Office (Conservatória do Registo Predial)
Purpose: The “identity card” of the property, confirming:
✔ Legal ownership (seller’s name matches registered owner).
✔ Encumbrances (mortgages, liens, usufructs, or pending lawsuits).
✔ Legal status (e.g., if owned by a company, we verify the seller’s authority to transfer).⚠️ Critical Check: Uncanceled old mortgages or “oneração” clauses (restrictions on resale).
2. Fiscal Matrix Certificate (Certidão Matricial / Caderneta Predial)
Issued by: Tax Authority (Finanças)
Key Details:
✔ Tax identification (parish number, property matrix reference).
✔ Fiscal value (used for IMI calculations).
✔ Current owner (and tax compliance status).
✔ Property characteristics (area, boundaries, land use – e.g., agricultural/rural).📌 Request an updated copy to ensure no unpaid taxes are inherited.
3. Licensing & Habitation Certificates
A. Usage License (Licença de Utilização)
Issued by: City Council (Câmara Municipal)
Confirms:
✔ The property complies with approved construction plans.
✔ It’s legally habitable (for residential) or operational (commercial).B. Building License (Licença de Construção)
Required for:
✔ New constructions or major renovations.
✔ Issued pre-construction; finalized with a Habitation License post-inspection.⚠️ Red Flags:
- Lack of a Habitation License (may indicate illegal construction).
- Discrepancies between the built structure and licensed plans.
4. Additional Verification Steps
🔍 Municipal Archives: Check for:
- Pending fines or urban violations.
- Ongoing construction permits.
- Zoning restrictions (e.g., rural land use limitations).
🔍 Condominium Records (if applicable):
- Verify meeting minutes for pending fees or litigation.
Why Partner with ProDirecta?
We handle all due diligence, including:
✅ Document retrieval (from registries, tax offices, and municipalities).
✅ Legal analysis (identifying risks like unregistered extensions).
✅ Post-sale support (resolving legacy tax issues or licensing gaps).📩 Need a property vetted? Contact us for a pre-purchase audit.
#PortugalRealEstate #DueDiligence #PropertyLaw
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