How to Avoid Fraud When Buying Property in Portugal

How to Avoid Fraud and Legal Problems When Buying a Property in Portugal

Buying a home is one of the most important decisions in life — and also one that requires careful attention. Between contracts, documentation, promises and expectations, it’s essential to ensure everything is legally sound to avoid fraud, unpleasant surprises or legal issues that can cost time, money and peace of mind.

The good news is that with the right information and preparation, you can significantly reduce risks and make safe, confident decisions.

1. Verify the legitimacy of the seller or developer

Before any visit or negotiation, make sure to confirm:

• that the seller is the actual legal owner

• that the company is registered and active

• whether there are complaints, lawsuits or a questionable history

For off‑plan properties, research the developer’s track record: completed projects, delivery timelines and overall reputation. Credibility is always the first filter.

2. Review all property documentation

Always request:

• Updated Land Registry Certificate (Certidão Permanente)

• Tax Registration (Caderneta Predial)

• Usage License (Licença de Utilização) or exemption

• Technical Housing File (Ficha Técnica da Habitação) for properties built after 2004

Missing documents should be treated as a red flag.

3. Never sign anything without legal review

The Promissory Contract of Purchase and Sale (CPCV) is the most critical document in the process. It must be reviewed by a lawyer or solicitor to ensure:

• clear deadlines

• penalties for non‑compliance

• transparent payment conditions

• buyer protection in case of delays or structural issues

Avoid vague contracts or clauses that benefit only the seller.

4. Confirm the property’s fiscal and legal status

Check whether there are:

• unpaid property taxes (IMI)

• liens

• mortgages

• ongoing legal disputes

All of this must be identified and resolved before moving forward.

5. For off‑plan properties: double your caution

This type of purchase carries higher risk. Ensure the contract includes:

• expected delivery date

• penalties for delays

• construction guarantees

• detailed description of materials and finishes

• conditions for refunding the deposit in case of non‑compliance

Never rely solely on brochures or verbal promises — what matters is what’s written in the contract.

6. Be cautious with prices that seem too low

If the price is far below market value, question it. Real estate fraud often begins with “unmissable opportunities.”

7. Keep everything in writing

Emails, messages, proposals and contract changes should all be documented. Informal agreements are fertile ground for future problems.

8. Work with trusted professionals

An experienced real estate consultant, a lawyer and a solicitor can help you avoid costly mistakes. Buying a home is not just an emotional decision — it’s a legal and financial one.

Conclusion

Avoiding fraud and legal problems when buying a property in Portugal is not complicated: it simply requires attention, verification and professional guidance. The more informed you are, the safer the process becomes — and the more peaceful your future will be.