Skip to main content

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 you 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 as 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 are surround by and the likely level of building to take place in future.

Unit-holders Association 
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 unit-holders association's regulations.
You will have to pay community fees for the maintenance of communal areas. The charges are calculted on the basis of each owner's share.
It is also wise to obtain the rules of the condominium.

POPULAR

BANK VALUATION OF HOUSES CONTINUES TO RISE

The price of the square meter in the country was valued at 1,141 euros, the highest value since May 2011.

The banking valuation of houses has increased for seven consecutive months. The price at which banks evaluate households when granting housing loans doesn't stop rising. The trend of this indicator accompanies the upward trend in house prices in Portugal.

According to the official data, the average value of the bank evaluation of the homes in October was 1,141 euros per square meter. This figure corresponds to an increase of six euros compared to the value registered in the previous month and is also the highest level since May 2011.

WHAT IS A TRADEMARK AND WHAT DO I NEED TO DO TO REGISTER IT IN PORTUGAL?

A trademark is a sign that identifies products or services that exist or is going to be launched in the marketplace. Trademarks enable us to distinguish a company’s products or services from those of other companies.

A trademark can comprise letters or words (verbal trademark), but may also be composed of pictures (pictorial trademark), or both (mixed trademark). It is also possible to register sounds as trademarks (recorded graphically on staves - sound trademark), as well as three-dimensional shapes (three-dimensional trademark). Trademarks can also be made up of advertising slogans, independently of any Copyright protection they may enjoy.

If the trademark is pictorial or contains a mix of words and pictures, you need to attach a picture of the trademark for publication in the Industrial Property Bulletin. This should be on A4 paper, no larger than 8cm x 8cm, and no smaller than 3cm in at least one of its dimensions. The image for publication should be of good technical quality and…

GARANTEES AND SEGURITIES IN PORTUGAL

In an open economy model, it is more important than ever to know what the legal risks are and how to minimise and overcome them. The better you know, the better you perform. In this article, we will summarise a clear and updated understanding of law and practice regarding guarantees.

Guarantees and securities
As a general rule, the debtor is liable in respect of his obligations. This rule affects all the debtor's assets, including future ones. The breach of an obligation, such as a payment, means that the debtor is liable to pay compensation.

Personal guarantees
By the contract, the parties may request additional guarantees besides existing assets to ensure the fulfilment of the obligation. One of these guarantees is "fian├ža." By entering into this kind of guarantee, a guarantor undertakes to pay on behalf of a third party in the event of this party not complying with the obligation of paying. The obligation depends on a principal debt and cannot exist without a valid prin…

WHAT ARE THE MAIN LEGAL PROCEEDINGS TO COLLECT A DEBT IN PORTUGAL?

The most common debt collecting legal proceedings applicable in Portugal are as follows:

Ordinary proceeding
The ordinary proceedings in the first instance can be divided into declarative proceedings and enforcement proceedings. In a declarative proceeding, the court decides on the merit of the litigation between the parties. In an enforcement proceeding, the court enforces a judgment or an enforceable title such as a cheque.

Declarative proceeding 
After a claim is submitted to the court, it is served to the defendant. The service is generally carried out by registered mail. When it is shown to be impossible to serve the complaint via registered mail, the service is instead made through direct contact. The defendant then has 30 days to present his reply, where he can defend himself by alleging procedural objections, arguing that facts are not true, or stating other facts. The defendant may also file a counterclaim. However, it must be connected with the main claim or with the defence a…

LISBON QUALITY OF LIVING

Lisbon passed New York in the quality of living. A study made recently by Mercer consultancy puts eight European cities among the ten cities with the best quality of life.

Lisbon occupies the 43rd place in a ranking with 231 cities. European cities continue to lead the list of cities with better quality of life. According to Mercer's study released on Tuesday, there are eight Europeans among the ten cities with the best quality of life. Lisbon is a place below last year, currently occupying the 43rd place in a ranking that considered 231 cities.