Did you know that in Portugal the purchase of real estate is under a preferential legal regime?
The process of buying and selling real estate is a fairly widespread process around the world. However, its regulation varies from country to country and is therefore subject to different types of legislation. In Portugal, the transaction of leased properties is subject to a Preemptive Rights
law, which we now address.
WHAT IS THE PREEMPTIVE RIGHT?
It´s a law that allows entities outside the acquisition of a property (Lessees) to intervene in the purchase process, exercising their preemptive power, to acquire it under conditions better or equal to those negotiated with the potential buyer.
WHO HOLDS THE PREEMPTIVE RIGHT?
- Lessees with a lease of a duration of 2 years or more (Article 1091 of the Civil Code) who have 30 days
from receipt of the notification to decide to exercise their right under Law No. 64. / 2018;
In case the rented fraction does not belong to a building constituted in horizontal property, the lessee continues to benefit from the preemptive right, which is applicable under the same terms provided for the independent renter.
- Public entities, such as the Directorate General of Cultural Heritage and the City Councils, which in situations where the property has cultural relevance or is situated in a regulated area - a historic center of a locality - have the right of first refusal. conditions defined with the potential buyer.
PROPERTY LEGAL SITUATION
Given the impact these rights have on real estate transactions in Portugal, it is always appropriate to:
Confirm the existence of preferential legal or contractual rights;
Notify the entities that hold them through Casa Pronta
´s online portal, where the conditions of sale (price and potential future buyer) must be identified;
Wait for the adoption or waiver of preemptive rights, within the time limits established by law.
You can find more details about the purchase of real estate HERE
. Nonetheless, if you would like more information on this or other matters, you can send us a message through our CONTACTS
area or contact one of our TEAM