Lawyer or Notary for a property in Portugal?
The role of a notary in a real estate transaction in Portugal differs significantly from that in other European countries. In France, for instance, each party has their own notary who is responsible for verifying their client’s documents. In Portugal, however, it is the lawyer who represents your legal interests, checks the financial status of the property and any mortgage, drafts the purchase contract, and prepares the transfer for the notary.
The notary, on the other hand, is an independent public officer who oversees the transfer of property. They do not work in the interest of either the buyer or the seller and do not receive any payment of money. The notary is only present during the signing of the deed of sale (Escritura Pública de Compra e Venda) to authenticate signatures and the financial settlement between the seller and the buyer.
What Does the Lawyer Do?
In Portugal, the lawyer takes on the role that the notary has in other countries: they verify the legal documents of the property (residency permit, building permit), check who the sellers are and if they are the legitimate owners, investigate if there is a mortgage or other debts on the property, and assess the seller’s solvency (especially when buying new construction).
In summary, hiring a lawyer ensures:
- Legal Advice: Provides advice on the legal aspects of the real estate purchase, offering complete legal protection and ensuring your interests are safeguarded.
- Title Verification: Checks that the seller is the legal owner and that the property is free of debts or other charges.
- Contract Preparation: Prepares and reviews contracts, including the promissory contract.
- Legal Representation: Represents the buyer in all administrative and legal procedures.
Thus, hiring a lawyer is not mandatory, but highly recommended!
How Much Does a Lawyer Cost?
A lawyer charges approximately 1% of the purchase price of the property, excluding VAT.
What Does the Notary Do?
As mentioned earlier, the notary is involved in authenticating the documents and signatures during the sale signing at the end of the process. They then register the transaction with the competent authorities.
What are the notary fees in Portugal?
In Portugal, it is the buyer who pays the notary fees. We recommend obtaining quotes in advance to choose the one that best suits your needs. Notary fees generally range from 1% to 3%, including registration fees and the stamp duty (0.8%).
Conclusion: Notary or Lawyer for real estate in Portugal?
The choice between hiring a lawyer in addition to a notary depends on your specific needs:
- For a Simple and Direct Transaction: A notary may be sufficient to authenticate and register the sale.
- For a Complex Transaction or Full Legal Protection: A lawyer is recommended for their advisory and thorough verification services.
Regardless, if you are buying as a foreigner, a lawyer is highly recommended to avoid unpleasant surprises!
