The Deed - What is it?

The deed is the act that establishes the purchase and sale of a property. It is carried out through a contract and is the final stage of the process.  It is usually preceded by the promise to purchase and sell contract, where an amount is paid to prove the interest in buying the property and a deadline is agreed upon for the execution of the deed.

In addition to signing the Promise to Purchase and Sell Contract, it is also necessary to obtain the certificate of content or land registry certificate and the habitation license. The different stages of the property purchase and sale do not have a stipulated time and depend on various factors, such as the use of bank credit. Thus, there is no defined and definitive time window for the signing of the deed.

For the execution of the deed, the presence of both parties (buyer and seller) is mandatory. The contract is signed before a notary, who attests to the compliance with the law and proves the identity of both parties, witnessing the purchase and sale of the property.

Deeds can be carried out at a Notary Office, a Land Registry Office, or at a Casa Pronta counter.

What are the necessary documents?

After the execution of the promise to purchase and sell contract, one must proceed to the organization of various documents necessary for the deed. They are:

• Civil and tax identification documents of the parties involved;
• Promise to purchase and sell contract of the property;
• Rural/Urban Property Booklet or Request for registration of the Property in the matrix (Model I of IMI) issued by the Tax and Customs Authority;
• Use license
• Technical Sheet of the Habitation;
• Energy Certificate;
• Certificate of content;
• Mortgage release;
• Settlement of IMT (Municipal Tax on the Onerous Transfer of Real Estate) and IS (Stamp Duty)
• BUPI;
• Declaration of no condominium debt.
• Plans

The sale of properties in insolvency proceedings is exempt, under the law, from the presentation of the Use License, Energy Certification, and Technical Sheet. Properties from collective insolvencies benefit from exemption from IMT and Stamp Duty.

What is the value of the deed?

The costs associated with the deed are, as a rule, borne by the buyer. The value of the deed depends on a series of factors, including:

• Acquisition value of the property;

• Whether it is a first or second home;

• Costs associated with the payment of stamp duty on the transaction;

• Stamp duty on credit;

• Registration of the deed;

• Costs with casa pronta, land registry, or notary services;

• Costs associated with the payment of IMT. IMT rates can be consulted on the Finance Portal;

• Location of the deed.

Article by Isabel Meireles dated November 29, 2024.