A to Z of Portuguese Legal Terms
Compiled from “Buying / Selling and Taxation Guide for Portugal” by Lita Gale. Available at www.litagale.com
In most jurisdictions a contract can be made very simply, in writing, orally or by conduct, therefore, care must be taken to always read the small print. I strongly recommend that you do not sign documents or pay any monies until first having consulted your legal representatives.
Buying a Home in any country can be traumatic but it does not have to be and the joys and rewards of owning your own home make it all worth while.Good luck and enjoy your home in the sunshine!
This is a Quick Glance Guide to Terminology and the immediate checks to be made if you are interested in a particular property and before making any kind of offer on a property and to introduce you to some terms more commonly used and their Portuguese equivalent and at the same time to give you an explanation of the basic steps, which you will encounter throughout the buying process.
Advogado
Equivalent to an English Solicitor and are addressed as doctors in Portugal.
Agente Imobiliário
Estate Agent - Estate agents in Portugal must be registered with their governing body.
Apólice de Seguro
Insurance Policy - Arrangements must be made as soon as possible for insurance cover once you purchase the property. If the property is in an apartment block there is normally an insurance policy for the whole block. If you want to terminate an insurance contract you must serve notice in writing.
Assinatura do Contrato
Exchange of Contracts: Upon the signing of the Promissory Contract, the Seller becomes bound to sell and the Buyer bound to buy the property and the deposit is then payable to the Seller who normally retains it.
Avaliação -
Valuation: This is normally carried out by the Banks but it is not the same as a Survey.
Caveat emptor
Buyer beware
The property and contents are normally sold as seen other than as implied but define that normal wear and tear is excluded
Comprador
Buyer - As for the seller, ensure that you or your legal representative makes identity, residency and status checks.
Conservatória do Registo Predial
Land Registry - A Property of whatever nature may not be transferred unless it has been registered at the Land Registry in the name of the Seller. If the Seller is not the owner, the true owner will have to sign the transfer Deed.
Conta Bancária
Bank Account It is advisable to have a bank account in Portugal and you will also need to provide evidence and identification of who your parents are, your residencey and proof of income and what is your profession as well as fiscal numbers.
Contarto de Empreitada
Building Contract - Which deals only with the construction, refurbishment or other building works rather than the sale of the land.
Contrato Promessa de Compra e Venda -
Promissory Contract - This normally is provided by the Seller together with Evidence of Title and the plans of the property and contains the usual terms and conditions for buying the Property.
Direitos de preferência
Rights of Preference - Neighbours, Local Authority and or the Portuguese Architecture Institute (IPPAR) may also have rights to acquire the property and they must first say that they are not
Entrega dos documentos
Deliver Documentation: In order to book completion it is necessary for all of the property documentation to be delivered in advance to the Notary as well as the identification documentation of the parties, such as copies of passports, powers of attorney searches etc.
interested in acquiring the property.
Escritura
Deed: Also used to refer to the transfer of the property.
Finanças
Fiscal Department - The equivalent to the local Inland Revenue tax department for the area where the property is situated. A property may not be transfered unless it is also registered at the Fiscal Department.
Hipoteca
Mortgage/Charge: The bank normally arranges to value the property and issues a mortgage offer. The lending will be secured with a mortgage/charge over the property.
Imcumprimento
Substantial Breach: Under normal circumstances a substantial breach of c ontract by the Buyer entitles the Seller to retain the deposit. A substantial breach by the Seller entitles the Buyer to receive twice the amount of the deposit.
Imposto Municipal sobre Transmissões (IMT)
Property Transfer Tax: (formerly Sisa Tax), payable prior to the signing of the Deed of Sale and Purchase. This payable normally on a sliding scale.
Inspecção
Inspection - It is highly recommended that you inspect the property and the contents and see if all is in working order before exchange of contracts and certainly before completion of the sale of the property.
Inspecção da Propriedade
Survey This should be done by reference to the plans of the property and its description at the Land Registry, Fiscal Department and Habitation Licence where there is one.
IPPAR - Instituto Português de Patrimonio Arquitetonico
The Authority who decrees whether a building or area is a listed building and the conditions imposed.
Inventário
Inventory: If the property is being sold with contents? If so these should be detailed in full and you should enquire as to whether there are valid guarantees in force.
Licença de Habitabilidade/ Licença de Utilisação
Habitation Licence: Confirms that the property has been constructed in accordance with the Planning Permission. A Property may not be sold unless it has a Habitation Licence.
Marcação da Escritura -
Book Completion: The Promissory Contract normally provides for who is to book completion of the sale and purchase and also a mortgage where there is to be one. It has to take place before a Notary Public in Portugal.
Mora
Minor Breach: Usually dealt with by way of damages.
Notario Público
Notary Public - A property is transferred when the Seller and the Buyer sign the Deed (Escritura) before a Notary Public in Portugal. He/she acts as an Officer of the State in a similar capacity to that of a Registrar.
Número de Contribuinte
Fiscal Number - Equivalent to a national insurance number. It is required by anyone who has property or other interests in Portugal such as Bank accounts.
Oferta de mútuo empréstimo e Hipoteca
Mortgage Offer: The bank’s formal confirmation that it will finance the purchase of the property.
As Partes
The Parties - Who are they? Where do they live? Are they bankrupt? Or, if the party is a company, are they in liquidation? Who has the power to represent them? Is the Seller registered as the owner of the property.
PDM: Plano Director Municipal:
Shows what may be built on the property and the area
Procuração
Power of Attorney: a person can instruct another to represent him/her by giving a Power of Attorney.
Registo Provisório
Provisional Registration: The mortgage or the purchase is registered at the Land Registry prior to the purchase of the property, after exchange of contracts.
Regime de Bens
Marital Regimes - there are 3 different types of marital regimes. Take care to know what this means and the effect of quoting the wrong marital regime in Portugal.
Representante Fiscal
Fiscal Representative - Anyone who has an interest in property or other assets in Portugal and is non resident in Portugal for tax purposes must have a Fiscal Representative. The representative is responsible for passing on to the non resident all communications received from the Portuguese Tax Authorities which also applies to their spouses.
Sinal
Deposit: Usually 10 to 20% of the Purchase Price
Solicitador - Equivalent to an English Legal Executive. This is not a Solicitor
Transferência Bancária
Bank transfer: Make sure that you have the monies in place, ready for completion as soon as possible.
Vendedor
Seller - Ensure that you or your legal representative makes identity, residency and status checks.