Here is the natural English version, adapted for foreign buyers navigating the Portuguese system — clear, practical, and not a literal translation.

5. Financing & Due Diligence When Buying Property in Portugal

The Stage Where Both Buyer and Property Are Fully Verified

Once the CPCV (Promissory Purchase and Sale Agreement) has been signed, the process moves into a technical validation phase where banks and legal entities confirm whether the transaction can actually proceed.

At this stage, assumptions disappear.

The buyer undergoes final financial approval, while the property itself is checked from both legal and technical perspectives.

Only after this dual verification can the purchase move forward to completion (escritura).

What Happens at This Stage

Several processes take place simultaneously:

• the bank orders an independent property valuation;

• final credit risk assessment is completed;

• the definitive mortgage offer is issued;

• full legal verification of the property documentation;

• confirmation that no debts or legal charges exist;

• financial preparation for completion.

This is the moment when the bank decides whether to release financing — and when the buyer confirms the property is legally safe to acquire.

Why This Matters

Even after signing the CPCV, transactions can still fail.

Common risks at this stage include:

• the bank valuation coming in below the agreed purchase price;

• unresolved mortgages or legal charges;

• incomplete or outdated property documentation;

• discrepancies between registered and actual areas;

• outstanding condominium debts.

This phase exists to prevent buyers from acquiring properties with hidden legal or financial issues.

Ana and Pedro’s Story

After signing the CPCV, Ana and Pedro felt the purchase was practically complete.

However, they soon realised that mortgage approval depended on the bank’s valuation of the property.

TeamQASA monitored the entire documentation process, ensuring ownership records were updated and no outstanding liabilities existed.

The valuation confirmed the expected market value, and the bank issued final loan approval.

What could have been a stressful period became a controlled technical step within the transaction.

Documents & Definitions

Bank Valuation (Peritagem Bancária)
An inspection carried out by an independent surveyor appointed by the bank to determine the property’s market value used as loan collateral.

FINE — European Standardised Information Sheet
A mandatory document detailing all mortgage conditions, including interest rate, fees, insurance requirements, and total financing cost.

Permanent Land Registry Certificate (Certidão Permanente do Registo Predial)
Legal record confirming ownership and identifying mortgages, liens, or other registered charges affecting the property.

Property Tax Certificate (Caderneta Predial Urbana)
Tax document issued by the Portuguese Tax Authority showing the property’s fiscal details and official taxable value (VPT — Taxable Asset Value).

Usage Licence (Licença de Utilização)
Municipal authorisation confirming the property is legally approved for its intended use (residential, commercial, or services).

Energy Certificate (Certificado Energético)
Report rating the property’s energy efficiency from A+ to F, legally required for both sale and mortgage financing.

Condominium Charges Statement (Declaração de Encargos do Condomínio)
Document issued by the building administrator confirming outstanding fees and approved future expenses.

Common Mistakes

• assuming mortgage approval is guaranteed after pre-approval;

• ignoring differences between valuation and purchase price;

• failing to verify registered charges;

• proceeding without full document validation;

• underestimating banking timelines.

Did You Know?

Portuguese banks typically finance up to 90% of the lower value between the purchase price and the bank valuation.

If the valuation comes in lower than expected, the buyer must cover the difference using additional own funds to keep the transaction alive.