Delay in the Delivery of Off-Plan Property: Buyer's Rights in Portugal

The purchase of a property in plan, that is, still under construction, is an increasingly popular choice in the Portuguese market. The promise of a more competitive price, phased payment terms and the possibility of customization make this type of acquisition attractive. However, when the property is not delivered on the agreed date, the buyer may face frustration, financial losses, and uncertainty. Fortunately, there is legal support to deal with this situation.

Applicable legal bases

1. Breach of contract

Under the terms of Article 804 of the Civil Code, failure to deliver the property within the agreed period constitutes default on the part of the property developer, who is responsible for the damage caused. The buyer can:

• Requiring forced performance of the contract (art. 801)

• Claim compensation for damages (art. 562 et seq.)

• Terminate the contract, if the default is final or causes loss of interest (art. 802)

2. Penalty clause

It is common for the Promissory Contract of Purchase and Sale (CPCV) to contain a penalty clause (art. 817), stipulating automatic compensation for each day or month of delay. This clause exempts the buyer from proving loss.

Practical steps to take

A. Check the contract

• Confirm the promised delivery date

• Check for a penalty clause

• Confirm deadlines for deed and penalties

B. Formally notify the seller

• Send a registered letter with acknowledgement of receipt demanding:

  • Justification for the delay

  • New delivery forecast

  • Compensation for losses or penalty clause

C. Claiming damages

• If the contract does not have a penalty clause, it is possible to claim compensation for proven damages, such as:

  • Payment of temporary rents

  • Losses with credit deferral

  • Costs associated with missing out on other opportunities

When the property is sold but the work is not completed

If the deed has already been carried out, but the building remains unfinished, the works regime applies (Articles 1207 et seq. of the Civil Code). The buyer can:

• Demand the completion of the work

• Terminate the contract and hire another company, charging the contractor for the costs

• Claim Compensation for Delay and Damage Caused

Legal guarantees after delivery

Even after the delivery of the property, the buyer is protected by guarantees:

• 5 years for non-structural defects

• 10 years for structural defects (Article 1225 of the Civil Code)

Grievance and resolution channels

• IMPIC: Accepts formal complaints against developers and construction companies

• Justices of the Peace: For disputes up to €15,000, quick and less costly solution

• Judicial Court: For higher values or more complex cases

Conclusion

The delay in the delivery of off-plan property is not just a setback: it is a breach of contract with legal consequences. By acting in an informed and documented manner, the buyer can protect their rights, recover losses and even terminate the contract. Legal support can be essential in these cases.