Do You Really Need an Attorney to Oversee Your Property Purchase in Portugal?

Buying property in Portugal is an exciting venture, but it can also be a complex process filled with legal considerations. Many foreign buyers assume that hiring an attorney is essential to protect their interests. However, a surprising reality is that attorneys in Portugal often work in the seller’s interest rather than the buyer’s, and banks play a critical role in ensuring the property's legal and financial soundness. So, do you really need an attorney when purchasing a home in Portugal? Let’s explore the answer.

The Role of an Attorney in Property Transactions

A real estate attorney in Portugal typically handles the following:

• Drafting and reviewing the Promissory Contract (Contrato de Promessa de Compra e Venda – CPCV)

• Ensuring the property has no legal disputes or outstanding debts

• Facilitating the title deed transfer

• Handling payments and legal documentation

While these responsibilities sound crucial, many attorneys in Portugal are more aligned with the seller’s interests, particularly if they are recommended by a real estate agent or the seller themselves. This means that they may not conduct the level of due diligence you expect as a buyer.

Attorney involvement in Portugal for the purchase of property, is vastly different to practicing attorneys in other foreign countries.

Banks Are Diligent in Protecting Buyers

Here’s where things get interesting: If you are financing your property purchase with a mortgage, the banks conduct rigorous checks to ensure the property is legally sound and free of encumbrances. Before approving a mortgage, banks require:

• Property ownership verification to confirm the seller has the legal right to sell

• Land registry checks to ensure there are no outstanding mortgages or liens

• Construction and licensing approvals to confirm the property complies with legal requirements

Essentially, the bank does much of the work that a buyer might assume an attorney would handle—without any conflict of interest. If a bank is willing to finance a property, it is usually a strong indicator that the property is legally secure.

When You Might Still Need an Attorney

While banks provide significant oversight, there are situations where an independent attorney (not one suggested by the seller) can be beneficial:

• Buying without a mortgage – If you're purchasing in cash, the bank won’t be conducting due diligence on your behalf.

• Complex legal situations – If the property is part of an inheritance, under dispute, or in a historic preservation zone, legal guidance is crucial.

• Negotiating contract terms – A lawyer can ensure favorable terms in the promissory contract.

The Smartest Approach to Property Buying in Portugal

Instead of immediately hiring an attorney, consider these steps:

1. Use the bank’s due diligence process if you’re getting a mortgage.

2. Connect with an expeirenced mortgage broker who specializes in buyer protection advice.

3. If hiring an attorney, ensure they are truly independent and not recommended by the seller or agent.

The idea that you must hire an attorney for a property purchase in Portugal is a myth, and a costly one indeed. While legal assistance can be valuable in certain cases, many attorneys work in the seller’s interest rather than the buyer’s. Banks, on the other hand, have a vested interest in ensuring the property's legal integrity before approving a loan. By understanding this dynamic and taking a strategic approach, you can reach out to me and I can confidently help you navigate your property purchase in Portugal without unnecessary legal expenses. Having well over 18 years experience in the property industry, my clients benefits from well rounded advice every step of the way.