In Portugal, after a real estate transaction is completed, it is necessary to proceed with its registration at the Property Registration Office. This registration is crucial to ensure the legal security of the transaction and ensure that the property ownership is properly transferred to the new owner.
Legal Deadlines for Registration of Real Estate Transactions:
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Registration Deadline:
Property registration must be carried out immediately after the execution of the purchase and sale deed within a period of 2 months from the date the facts were titled. There are some exceptions with shorter deadlines (registration of actions in 10 days and within one month from final judgment), and although they enjoy an extended deadline, for registration, it is highly recommended that it be done as quickly as possible to ensure protection of the new owner’s rights against third parties.
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Consequences of Non-Registration:
While the transaction is not registered, the new owner does not have full protection against third parties, which may result in litigation or property disputes. Registration is what confers publicity and effectiveness against third parties.
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Consequences of Delay:
Failure to observe this deadline may result in fines being applied to the new owner. It is crucial that registration is carried out within the legal period to avoid additional charges and ensure full legal effectiveness of the acquisition.
Additional Context Note (Immediate Submission of Registration Request): Although the legal deadline of two months exists, in practice, this risk of delay is frequently mitigated:
- Professional Submission: Currently, the act itself that titles the transaction (whether the public deed granted by a Notary or the Authenticated Private Document executed by a Lawyer or Solicitor) routinely includes the property registration request.
- Immediate Registration: The professional who executes the act (Notary, Lawyer, or Solicitor) submits the request to the Property Registration Office immediately after execution.
- Legal Protection: This immediate submission ensures that, from that moment on, the acquisition is legally protected through a registration that is provisional by nature, preventing the new owner from incurring fines for delay and ensuring that their acquisition has priority over any subsequent registrations.
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Procedure:
Registration can be done in person at a Property Registration Office or through the Property Registration online service. It is necessary to present the purchase and sale deed, the updated property tax card, and pay registration fees.
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Other Considerations:
In addition to property registration, it is important to update the property tax card with the Tax and Customs Authority to reflect the new title and ensure that payment of Municipal Property Tax (IMI) is made correctly.
Carrying out property registration promptly is fundamental to ensure that the real estate transaction is valid and effective, protecting the new owner’s rights and avoiding future legal problems.