The attachment of a property in Portugal can significantly affect its sale, depending on the type of debt and the entity that originated the attachment. Here are the main impacts:
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Possibility of Sale and Transfer of Encumbrance:
Contrary to common belief, an attached property can be sold, but the attachment constitutes an encumbrance that is transferred with the property to the new owner. This means that the buyer acquires the encumbered property, and the original creditor maintains the right to execute the property (judicial sale) to collect the debt. For this reason, in practice, the sale is only completed if the debt is settled at the time of the deed, using the transaction value to lift the encumbrance.
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Sale to Pay Debts:
If the attachment is the result of a private enforcement process, such as a debt to a bank, the property can be sold to settle the debt. In this case, the sale can occur through auctions or direct negotiations, and the proceeds are used to pay creditors.
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Legal Protection of Housing:
The legal protection of the family residence is limited and applies strictly to tax debts. Law no. 13/2016 (CPPT) protects the own and permanent low-value residence against attachment (up to a maximum limit that in 2025 is €142,875). Important: For private debts (banks, condominiums, etc.), this protection does not exist, and the property is subject to attachment and execution.
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Continuation of Occupation:
In some cases, even if the property is attached, the debtor can continue to live in it, especially if it is their main residence. The sale of the property can only occur after a specific period, allowing the debtor to try to resolve the debt before forced sale.
Therefore, attachment is an encumbrance that significantly complicates the sale, although it does not formally prevent it. In practice, the transaction is only completed when the debt that gave rise to the attachment is settled at the time of the deed, with the Notary or authenticating entity being crucial to ensure the lifting of the encumbrance before the transfer of ownership.