What does a lawyer check when buying property in Portugal? And why buyers should not rely on the notary.

Many buyers from Germany, Austria or Switzerland initially assume a familiar process when buying real estate in Portugal: The notary takes over the legal examination of the property and ensures that everything is correctly registered. This assumption is understandable, but it is not true.

In Portugal, the notary has a much more limited role. He notarizes the purchase contract, checks the identity of the parties involved and confirms that the necessary documents are formally available. However, a legal examination of the property is expressly not part of his area of responsibility.

This shifts responsibility: In Portugal, the legal control of the property, the verification of ownership and the identification of risks are taken over by the lawyer ("Advogado"). For buyers, this is one of the most important differences in the entire process.

1. Notary vs. lawyer – the fundamental system difference

What the notary in Portugal actually does

The notary is responsible for notarizing the purchase contract and ensuring the legal framework for signing. He checks:

• the identity of buyer and seller
• whether the minimum documents required by law have been submitted
• whether the contract was drawn up in a formally correct manner

This means that his responsibility ends almost entirely with the formal settlement. The notary does not take over his own control of the content of the property and does not check whether it is debt-free, legal or fully registered. He relies on the documents that are handed over to him. Whether these are correct or up-to-date is not the subject of his activity.

What the lawyer does

The lawyer exclusively represents the interests of the buyer or the seller. He analyzes the property, the documents and the entire transaction process much more comprehensively. His task is therefore more like a "due diligence" as we know it from other countries. It ensures that the buyer acquires a legally clean property, without hidden risks, without open encumbrances and without missing permits.

2. What exactly does the lawyer check when buying real estate?

Ownership and legal structure of the property

A central step is to check whether the seller is actually entitled to sell. The lawyer clarifies, among other things:

• who owns the property according to the land register
• whether there are multiple owners
• whether heirs or other family members have to agree
• whether all registers (tax office, land register, cadastre) are consistent
• whether the legal structure of the object is correctly documented

In Portugal, different authorities can each maintain their own registers, which occasionally leads to discrepancies. It is precisely these discrepancies that pose risks, especially for foreign buyers who are unfamiliar with the system.

Debts, mortgages and encumbrances

The lawyer will check whether the property has any:

• Mortgages
• Lien rights
• Transfers of ownership by way of security
• Tax arrears (e.g. IMI)
• Outstanding municipal charges

Even though many types of debt in Portugal are not automatically transferred to the buyer, they can block or delay the transfer of ownership. Unpaid municipal bills, outstanding energy contracts or outstanding fees may need to be settled before the escritura.

Legality under building law: permits and registered areas

An important and often underestimated point is the review of the legality of building law. The lawyer checks at the town hall depending on the need:

• Building permit (Licença de Construção)
• Usage Permit (Licença de Utilização)
• Registered areas, plans and registered living space
• Status of extensions such as pool, garage or annexes

Especially in the Algarve there are many houses with smaller or larger deviations. Some are unproblematic, others can make financing or later legalization much more difficult. Banks also check these points strictly and a lack of a use permit can lead to no mortgage being granted.

Contract review and contract drafting

The CPCV (preliminary contract) is particularly important in Portugal, as it establishes deposits, penalties, cancellation rights and deadlines. Errors or unclear clauses can quickly become expensive.

The lawyer:

• prepares or checks the CPCV
• sets conditions that protect the buyer
• regulates secure payment methods and has an escrow account
• prepares the purchase contract
• coordinates all parties involved

Buyers without local knowledge in particular benefit from these steps, as they are usually not familiar with Portuguese contract law.

Post-purchase support

For a fee, many lawyers take on additional tasks that are important for buyers without a Portuguese residential address, such as: re-registering water, electricity and gas or, for example, assisting with insurance and tax issues or applying for a short-term rental license (AL license).

This is often a considerable relief for foreign buyers, as many processes are still handled in person or in writing.

3. FAQ – Frequently asked questions about the lawyer and notary in Portugal

Is a lawyer mandatory?
No. There is no legal obligation. In practice, however, its involvement is strongly recommended, as no one else will check the content of the property.

Is the notary not enough?
No. The notary does not carry out any due diligence, but only confirms the formalities.

Who is liable for errors?
The lawyer is liable for his legal advice. The notary has only limited liability within the scope of his formal duties, not for missing examinations.

Can you use the seller's lawyer?
This is not advisable. Conflicts of interest could arise.

How much does a lawyer cost?
Depending on the scope, usually 1 - 1.5% of the purchase price or a fixed lump sum. The costs are usually in a reasonable proportion to the risk minimization.

Result

The lawyer plays a central role when buying real estate in Portugal. While the notary only ensures the formal notarization, the lawyer controls the legal and building law situation of the property in terms of content. This check protects buyers from financial and legal risks and creates transparency in a system that differs significantly from others in Europe.