Due Diligence
The checks that are normally carried out before signing.
Overview
The checks that are normally carried out before signing.
QUICK ANSWER
What is checked before committing to a purchase?
Due diligence checks whether the seller can sell, reviews registered charges, encumbrances and debts against the available documentation, and assesses whether what is built matches what is licensed and registered. It identifies how any issues should be dealt with before completion, combining registry and tax records, municipal licensing, condominium information and, where appropriate, a technical survey of the building itself.
Key points
- Check ownership, registered charges and debts before any binding commitment.
- Check that what is built matches what is licensed and registered.
- Obtain condominium arrears, minutes and planned works in writing.
- Commission a technical survey separately from the legal review.
Legal and registry checks
The starting point is the Land Registry certificate (certidão permanente), which shows the registered description of the property, the current owner and any mortgages, charges, attachments or pending actions. The tax record (caderneta predial) shows how the property is described for tax purposes and its taxable value (VPT), which is relevant to acquisition tax.
Discrepancies between the registry, the tax record and the physical reality of the property are common and need to be resolved before completion rather than after.
Core documents reviewed
- Certidão permanente — Ownership, description and any registered charges or encumbrances.
- Caderneta predial — The tax description of the property and its taxable value.
- Use documentation — The municipal licence of use, or the equivalent documentation or municipal information applicable to the building, evidencing the permitted use.
- Technical data sheet — The ficha técnica de habitação, where it applies to the building in question.
- Energy certificate — Mandatory for sale and indicative of running costs.
Good to know
Documentary requirements in urban planning and licensing have changed in recent years, including under Decree-Law 10/2024 and the related SIMPLEX urbanístico measures. Which documents exist, are required or can be obtained depends on the building, its licensing history and the municipality, so the pre-2024 documentary model does not apply to every transaction.
Planning, licensing and building works
Municipal records show the approved plans and any licences granted. Extensions, converted basements, enclosed terraces, annexes and swimming pools added without approval can create legal and practical issues for a buyer after completion and should therefore be identified and addressed before purchase.
Where the property is in a protected area, in a rustic zone or subject to coastal or forestry restrictions, additional constraints may apply to what can be built or altered.
Debts, condominium and occupation
Confirm that IMI and any condominium contributions are up to date, and obtain a declaration from the condominium administrator covering arrears, planned works and any approved special levies. Minutes of recent general meetings often reveal significant future costs.
Check whether the property is occupied, whether any tenancy is in place and, if so, on what terms, since existing tenancies may continue after the sale.
Good to know
Requesting condominium documents takes time. Start early so the answers arrive before contractual deadlines fall due.
Technical survey
A legal review does not assess the physical condition of the building. An independent survey covering structure, roof, damp, drainage, electrical and plumbing installations is advisable, particularly for older properties and for renovation projects.
Where this fits in the buying process
This guide expands on the "Carry out due diligence" stage of the full buying process. Read it alongside the complete step-by-step guide to see what comes before and after.
Frequently asked questions
Checks are normally carried out before signing, because the promissory agreement usually commits the buyer. What should be checked depends on the property and the transaction.
Next steps
This guide provides general information about buying property in Portugal and does not replace legal advice on a specific transaction.