PORTUGAL LAW AND PRACTICE Contributed by: João Gonçalo Galvão, Carolina Cardoso Alves and Miguel Paquete, CS’Associados
dential or mainly residential. Aiming to increase land availability and encouraging development to strengthen the response to the housing crisis, this new legal framework has been in force since January 2025; it is too soon to assess its results and impact.
The transfer of title to accommodation units located in tourist developments is governed by the legal framework for the installation, operation and functioning of tourist developments, which defines different transferability requirements considering the specific nature of the asset. 2.3 Effecting Lawful and Proper Transfer of Title The transfer of title to real estate is effected via public deed or authenticated private document. Although transfer of ownership produces imme - diate effects, registration thereof must be sub - mitted to the Land Registry Office (LRO). All real estate is registered with the LRO as well as with the Tax Department. The purpose of the first registration is to record the property’s identi - fication details (location, description, area sizes) and relevant circumstances and events so that title and encumbrances can be ascertained. The purpose of registration with the Tax Department is to report and provide information relevant for tax purposes, including ownership and patri - monial value. Rural properties also have a geo - graphical representation on an online platform. 2.4 Real Estate Due Diligence Legal due diligence on properties seeks to ver - ify ownership and identify any encumbrances; assessment of the assets’ tax status, urban planning/licensing status and other regulatory requirements (including environmental) is also important. Legal due diligence also seeks to identify any negative consequences that may be triggered by the envisaged transaction. Technical due diligence relies on inspections and surveys, and focuses on assessing the suitability of the assets, construction status and the exist - ence of any structural or hidden defects. Techni -
2. Sale and Purchase 2.1 Categories of Property Rights
Ownership is the broadest property right, an in rem right encompassing the right to use, receive the benefits of and dispose of a property, subject to the restrictions set forth in law. A property may be held individually or jointly in co-ownership, with each person owning a share according to the percentages agreed, or all shares being equal if the property title does not provide otherwise. Other in rem property rights include: • surface rights, entitling their owner to con - struct on or cultivate (above or below the surface) land owned by a third party and to maintain title to the constructions or cultiva - tions, on a perpetual or temporary basis; and • usufruct and right of use, which entitle their holder to use and enjoy a third-party property, fully but temporarily, without being entitled to alter its form or substance. 2.2 Laws Applicable to Transfer of Title The transfer of title to real estate is governed by the CC, but specific regimes such as the Framework Law on Housing and the Framework Law on Cultural Estate, among others, should be considered as they establish restrictions on transferability, such as pre-emption rights in favour of public entities.
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