Public Deed

The Public Deed in the real estate sector is essential to guarantee the legal security of real estate transactions , ensuring the rights and duties of the parties involved. Alternatively, interested parties may choose to formalize the purchase and sale of a property through an Authenticated Private Document .

Both ways are legally valid provided that the obligations contained in the law are fulfilled. Come and find out what these documents are, who can formalize them, what obligations and costs are involved, and the differences between the two.

Who can carry out a purchase and sale deed?

The deed of purchase and sale of a property can be carried out in two formats:

• of a Public Deed , which will have to be formalized before a notary, who is a public official authorized to give public faith to acts and facts that occurred in his presence, or
• an Authenticated Private Document , which after being signed by all parties, can be deposited by: lawyers; notaries; solicitors; conservatives; chambers of commerce and industry .

These professionals, qualified for the practice of legal acts, can and must prepare, check and authenticate the documents necessary for the execution of the Public Deed of purchase and sale of the property, or the Authenticated Private Document.

What is an Authenticated Private Document?

In Portugal, an authenticated private document is a private document drawn up by the interested parties, without the mandatory intervention of a public official (notary), but which has had its authenticity confirmed by an Authenticating Entity (EA), such as a lawyer, solicitor, notary , chamber of commerce and industry, conservator or registrar, under the terms prescribed by notary laws.

EA will verify the identity of the parties and the veracity of the information contained in the document, in addition to attesting that the signatures on the Private Document were made freely and conscientiously. After this verification, the authenticating entity will draw up an Authentication Term with notary recognition and affix its seal and signature to the document, making it authenticated.It is important to point out that, after signing the Term of Authentication, EA must immediately "deposit" all documents on the online platform usually used for this purpose: Predial Online . Without this step, the Authenticated Private Document has no validity or any legal effects.

preparation of the Private Document and its signature may or may not be signed in the presence of the Authenticating Entity (EA), it is not mandatory that it be, unlike the authentication term must be signed in the presence of the authenticator . That is, private documents acquire the nature of authentic documents as long as the parties confirm their content to EA and EA certifies its legal validity.

Documents required for the Public Deed

1. Property booklet : Document issued by the Tax Authority that contains tax information on the property;
2. Land registry certificate : Document that proves the description of the property and its legal situation;
3. Use license : Document issued by the City Council that certifies the conformity of the property for a given use;
4. Housing technical sheet : Document with technical and functional information about the property;
5. Energy certificate : Document indicating the energy classification of the property;
6. Identification document : Citizen Card, Identity Card or Passport of the parties involved in the transaction;
7. Proof of payment of IMT : Municipal Tax on Real Estate Transfers, to be paid by the buyer before the deed.

Image suggestion: Image of a folder with documents and the caption "Documents necessary for the Public Deed".

Public Deed Power of Attorney

If one of the parties involved in the real estate transaction cannot be present when the deed is signed, it is possible to use a power of attorney . The power of attorney must be drawn up by a notary or solicitor and grant specific powers to the attorney to carry out the public deed on behalf of the grantor.

Image suggestion: Image of a power of attorney with the caption "Power of Attorney in Public Deed".

The CPCV (Promissory Purchase and Sale Agreement)

Before signing the public deed, it is common to carry out a Promissory Purchase and Sale Contract (CPCV) . This document aims to establish a commitment between the parties involved, agreeing the terms and conditions of the future real estate transaction. The CPCV, although not mandatory, guarantees greater legal certainty, establishing deadlines, responsibilities and penalties in case of non-compliance.

Image suggestion: Image of a Promissory Purchase and Sale Contract with the caption "The CPCV precedes the Public Deed".

Costs associated with deeding a house or other property

The execution of a public deed implies the payment of various costs, such as:

• Notarial fees : Fees charged by notaries for carrying out the deed;
• Solicitor fees : If you are a solicitor carrying out the deed;
• Municipal Tax on Real Estate Transfers (IMT) : Tax to be paid by the buyer before the deed;
• Stamp Tax : Tax applied on the value of the real estate transaction, paid by the buyer;
• Property registration : Fees charged for updating the land registry after signing the deed.

It is important to note that costs may vary according to the value of the property and the specific conditions of the transaction.

FAQ - Frequently asked questions about the Public Deed of Purchase and Sale of a property

1. Is it mandatory to carry out the public deed for the purchase and sale of a property?

   No, there are two forms with equivalent legal value: the Public Deed or the Authenticated Private Document. Both are valid, as long as the legal requirements are met. In Portugal, these are the only two legal ways to formalize and confirm the transfer of a property through purchase and sale, guaranteeing the legal security of the transaction.

2. How long does it take to complete a purchase and sale deed?

   The time for carrying out the deed depends on several factors, such as the physical and financial availability of the parties involved, the organization of the necessary documents and the agenda of the notary or lawyer/solicitor (in the case of an Authenticated Private Document - DPA).If you choose to sign a Promissory Purchase and Sale Contract (CPCV), the usual deadlines, after acceptance of the purchase proposal by the owner, are 15 days for the preparation of the CPCV and 90 days for the formalization of the Public Deed or of the DPA . Sometimes, the DPA is a faster option in terms of scheduling the legal entities involved (solicitor or lawyer) than the Public Deed (notary), which is one of the reasons for its choice.

3. What are the costs involved in the Public Deed of purchase and sale or DPO?

   The costs associated with the public deed include notary fees, legal entity fees (notary, solicitor or lawyer), Municipal Tax on Real Estate Transfers (IMT), Stamp Duty and property registration fees. These amounts may vary depending on the value of the property and the specific conditions of the transaction.

4. Can I carry out the public deed for the purchase and sale of a property remotely?

   Yes, in Portugal it is possible to carry out the purchase and sale deed of a property remotely, in which the parties can be in different places, provided that the legal requirements established by Decree-Law n.º 126/2021 of 28 September 2021. According to article 3 of this decree-law, the deed can be carried out at a distance provided that the necessary security and reliability conditions are guaranteed, in accordance with the guidelines of the Ordem dos Notas. In order to carry out the deed remotely, it is necessary that the parties involved are in agreement and that there is a means of communication that allows interaction in real time with the notary (or solicitor/lawyer in the case of a DPO). The authenticity of the signatures and the confidentiality of the data exchanged during the electronic transmission of the notarial act must also be guaranteed.However, it is important to remember that even if the deed is carried out remotely, the transaction of buying and selling a property in Portugal requires compliance with certain legal and tax procedures , such as carrying out a property valuation (VPT) and paying taxes such as IMT and Stamp Duty.

5. What happens if the public deed of purchase and sale is not carried out?

   If the public deed of purchase and sale is not carried out, the real estate transaction will not have legal validity, and may generate future problems, such as the impossibility of registering the property, the lack of legal guarantees and the possible application of penalties provided for in the CPCV, if this has been celebrated.

Conclusion

The Public Deed in the real estate sector is an essential document to guarantee the legal security of real estate transactions in Portugal. For its realization, it is necessary to rely on the performance of notaries (in the case of a Public Deed) or solicitors/lawyers (in the case of an Authenticated Private Document - DPA). If you choose to sign a Promissory Purchase and Sale Contract (CPCV), the usual deadlines, after acceptance of the purchase proposal by the owner, are 15 days for the preparation of the CPCV and 90 days for the formalization of the Public Deed or of the DPA. Sometimes, the D and provide several documents. The CPCV is an instrument that precedes the deed and establishes a commitment between the parties involved. Finally, it is important to be aware of the costs associated with the public deed and plan financially for that moment.