Selling a co-owned property in Portugal: a practical guide

First find out exactly what is shared

Imagine a certificate showing Ana with one half and Luís with the other. That does not give Ana the ground floor and Luís the upstairs rooms. Each holds an undivided share in the whole property. The distinction matters because it changes what either person can promise to a buyer.

Start with the certidão permanente predial. It shows the owners, the registrations currently in force, recorded charges and pending requests. Then put it beside the acquisition deed and the Caderneta Predial. If the names or description do not line up, stop and find out why. Old mortgages, usufructs and attachments are not details to leave for the week of completion.

There is one more trap. Families often use ‘shared house’ for several legal situations. A property that still sits inside an undivided estate, or belongs to a married couple under their matrimonial regime, may not follow the same route as ordinary co-ownership. A lawyer or solicitor should identify the position from the documents rather than from the family’s shorthand.

Selling the whole home requires every owner

For the entire home to change hands, all of the owners must take part or give somebody the right authority to act. One person can answer enquiries and host every viewing. That convenience does not turn them into the sole seller.

Do not settle for a family WhatsApp message saying ‘yes, sell it’. Put the awkward points on one page: the asking price, the lowest offer worth discussing, who replies to buyers, which costs come off first and how the remaining money is divided. Add the bank balance if there is a mortgage. It is easier to disagree over that page before launch than while a buyer waits for a counter-offer.

A share is not a physical half of the house

Article 1408 of the Portuguese Civil Code allows a co-owner to dispose of all or part of their undivided share. Without the other owners’ consent, however, that person cannot sell or charge a specific physical part of the common property. Someone who owns 50% of a house may transfer that share; they cannot decide on their own that it represents the ground floor or the garden.

The distinction changes the commercial proposition too. A buyer of the whole property obtains control of the whole, subject to the normal rules. A buyer of one share enters into co-ownership with the people who remain. Those transactions attract different buyers and different risks. An advert should never suggest that they provide the same control.

Check pre-emption rights before selling one share

When a share is sold or transferred in lieu of payment to someone outside the co-ownership, the other co-owners have a statutory right of first refusal. Article 1409 refers to Articles 416 to 418. The proposed sale and its contractual terms must be communicated to the person with the right. The general rule in Article 416 gives eight days to exercise it after communication, unless another period applies.

A brief message is rarely a safe substitute for a properly organised notice. The price, payment terms, buyer and other material clauses need to match the intended transaction. A later change can require the process to be reconsidered. Before a CPCV is signed or the transfer completes, the transaction lawyer should confirm the recipients, content, delivery method, proof of receipt and applicable deadline.

What if one owner refuses to sell?

If one of two owners refuses to sell, start by finding the real point of disagreement. It may be price, timing, a cost already paid, use of the home or distrust of the offer. A valuation supported by clear evidence and two or three concrete alternatives are usually more useful than insisting that the market is strong.

If the disagreement continues, the Civil Code generally provides that nobody has to remain in undivided ownership indefinitely, subject to a valid agreement to the contrary. Division may be agreed or pursued through legal proceedings. That does not guarantee a quick outcome or mean the property can be physically divided. Take the title and land-register certificate to a lawyer or solicitor to discuss the possible results, costs and timing.

Put every offer on the same page

Consider Ana and Luís, who each hold half of a house. One buyer offers €300,000 for the entire property. Another mentions €150,000 for Ana’s share alone. The arithmetic looks like a simple half, but the transactions are not alike. In the first, Ana and Luís both sell and the buyer owns the whole. In the second, the buyer becomes a co-owner with Luís and the rules for the share sale, including any right of first refusal, come into play. These figures are only an example, not a valuation.

Use one offer sheet that clearly states what is being bought, followed by the price, finance, deposit, dates, outstanding conditions, included items and costs. Then calculate loan repayment and how the proceeds will be divided between owners. Keeping the terms together helps everyone assess the same deal.

Make the advert and CPCV tell the same story

The advert must make clear whether the whole property or only an undivided share is for sale. An undivided share is not a separate unit and must not be presented as one. One person may coordinate enquiries and host viewings, but decisions and the written offer record still involve all relevant owners.

The CPCV must describe the same transaction. Sellers, property, price, deposit, conditions and date should match what was actually agreed. If a signature, power of attorney or release of a charge is still missing, say so before the buyer discovers it. Even a short draft needs independent legal review; a template cannot understand the relationship between these particular owners.

Checklist before the property goes live

Settle these points before advertising so the owners do not have to reopen the discussion after every enquiry. Keep a record of what has been agreed and what still needs confirmation.

• Confirm owners, shares and charges in the land register
• Distinguish co-ownership from an undivided estate or marital property
• Agree price, negotiation limits, expenses and net-proceeds division
• Name one person to coordinate enquiries, viewings and replies
• Check rights of first refusal before selling a share to an outsider
• Keep the advert, offer and CPCV consistent about what is being sold
• Obtain legal advice if authority or consent is disputed