WHAT ACTS OF DUE DILIGENCE ARE GENERALLY CONDUCTED WHEN BUYING A PROPERTY?


Due diligence is the act of an investigation of a business or person prior to signing a contract. When buying a property there are minimum checks that one must do.

Real estate registry
The registry has a record of property ownership, with a complete description of each property on a material, economic and fiscal level, being able any citizen to require information regarding an enrolled building in the Registry. Thus, to analyze the “history” of the property, it is necessary to require the emission, of a document certificate of the full record of the title and dealings regarding the property.

For that purpose, the registration record number or the property's full address is required. Mainly, the register is consulted to check whether:
- the property is registered in the name of the person or company claiming to be the owner;
- there are any liens;
- any seizure has been registered.

The land registry is where you can obtain copies of land registry certificates.

Tax office
It is also common to seek information on the tax office of the property's area, to check if it is registered and if so, to obtain the following information:
- the property registration number;
- the estate value;
- to know if any rental contract has been declared (although there is a possibility that the owner did not submit a copy to the local tax office).

The properties are enrolled in accordance with a number. These numbers, assignment of articles, are called "matriciais". The document that demonstrates the fiscal situation of the property is named "Caderneta Predial". In Portugal, the property is either rustic, urban, or mixed (rustic and urban).
Check whether the details on the "caderneta predial" are consistent with the land registry certificate - a final deed can not be signed without it.

City Council
It is also possible to go to the City Council in order to check if the property is licensed (housing, commerce or other) or if development is planned or what type of land is surrounded by and the likely level of building to take place in future.

Condominium
If it is a flat you are about to buy, the following information could be obtained from the unit-holders association:
- the management and service cost;
- if there are any outstanding payments;
- the condominium association's regulations.
You will have to pay community fees for the maintenance of communal areas. The charges are calculated on the basis of each owner's share.
It is also wise to obtain the rules of the condominium.

If you need any help contact us at info@ncadvogados.pt .

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