Buying off-plan property in Portugal: checks before paying a deposit

Identify exactly what is being promised

Confirm whether the contract concerns a future autonomous unit, an existing plot with a project, a unit already under construction or another legal structure. Parking, storage, terrace, garden, pool access and common areas must be identified in the documents, not only in a brochure.

Record the unit reference, floor, orientation, internal and external areas and the legal status expected at completion. Ask how the documents for the final unit and condominium will be prepared and what happens if the approved project changes those details.

Check the developer, land and permission to build

An independent professional should verify the seller or developer's identity and authority, the land-registry position, mortgages or other charges, and the planning and construction evidence for the project. The buyer should understand which charges will be removed before transfer and which project obligations continue after completion.

Portuguese Civil Code rules for a promise concerning a building constructed, under construction or to be constructed include formal requirements linked to the construction licence. Do not treat a sales reservation or architectural render as evidence that the required approvals and property rights are in place.

Attach the plans and specifications to the deal

The contract documents should identify the drawings, room layout, areas, materials, equipment, expected energy performance and common facilities promised to the buyer. Establish which takes precedence if the brochure, show apartment, technical specification and approved project differ.

A reasonable substitution clause may be necessary during construction, but it should not give an unlimited right to change quality, area or layout. Ask who certifies changes, how the buyer is informed and what remedies apply when a change is material.

Understand the risk at each payment stage

List the reservation amount, deposit and later instalments with exact due dates or objectively verifiable milestones. Confirm who holds each payment, whether it is refundable, what evidence triggers the next stage and whether any security or guarantee applies.

The CPCV should deal with delay, failure to complete, insolvency risk, termination, interest, return of money and any right to transfer the contractual position. These are legal drafting questions. A statement that deposits are ‘standard’ is not a substitute for knowing what the signed clause does.

Agree a final deadline as well as an estimated completion date

Construction schedules can change. The contract should distinguish the expected completion date from the final contractual deadline, often called the long-stop date. It should explain permitted extensions, the notice and evidence required, and the buyer's options after that deadline.

Specify what must be ready for completion: the relevant use or planning title, final registration, energy and technical documents, removal of agreed charges, keys and the condition of the unit. The timetable should require objective evidence that these conditions have been met before either party can declare the property ready.

Coordinate the mortgage before promising stage payments

A bank's approval today may not guarantee finance for a property completed much later. Income, rates, lending policy and the final valuation can change. Banco de Portugal explains that LTV uses the lower of purchase price and valuation, so a valuation gap can increase the buyer's required funds.

Ask the lender what it can assess now, when a new application or valuation will be required and whether it finances any instalments before completion. The CPCV's financing terms need to fit the construction schedule; a generic mortgage clause may not protect a buyer through a project lasting several years.

Plan inspection, snagging and handover

Agree when the buyer and an independent technical professional can inspect the unit, how defects are recorded, the time allowed for correction and whether completion can proceed with minor outstanding items. Keep the approved plans and specification available during that inspection.

Portuguese consumer conformity rules may provide remedies for a qualifying consumer purchase of a new property, but scope and deadlines depend on the parties and facts. Contractual inspection and evidence still matter; statutory rights should not be used as a reason to accept an unclear handover record.

Off-plan checklist before paying

The larger the pre-completion payment, the more important it is to understand the legal protection attached to it. Obtain transaction-specific advice before signing or transferring funds.

• Developer identity, authority and track record verified
• Current land register, charges and construction approval reviewed
• Unit, parking, storage, areas and common facilities identified
• Plans and technical specification attached or clearly incorporated
• Payment stages linked to evidence and refund rules
• Delay, long-stop date, changes and default remedies written clearly
• Mortgage timing and final valuation risk assessed
• Inspection, snagging, documents and handover process agreed