Sale of property between family members: necessary documents

Selling a property to family members may seem simple, but it involves complex legal and family considerations.
The sale of a property between family members requires careful preparation and the gathering of several essential documents. This process is crucial to ensure a smooth transaction. We explain in detail the necessary documents and steps to follow to successfully formalize this sale.

Essential documents for selling a property

It is important to have certain documents organized in order to proceed with the sale of a house. Try to have everything together so that when you start the sale process, you don´t encounter any setbacks: 
Permanent Land Registry Certificate or Certificate of Content;
Land Registry Book;
Housing License;
Housing Technical File;
Energy Certificate; 
Property plans;
Mortgage Release; 
Declaration of No Debt to the Condominium.


Specific documents for family transactions

In the case of a house sale between family members, in addition to the documents mentioned above, it is important to gather or request the following documents:
Birth or Marriage Certificates – These documents may be necessary to confirm the family relationships between the parties involved in the transaction. They can be obtained from the Civil Registry Office;
Identification Documents – All parties involved must present valid identification documents, such as a Citizen Card or Passport.


Documents and costs associated with selling a house

Once you have all the documents in your possession and want to formalize the sale of the house, you will have to sign a Promessa de Compra e Venda (CPCV) contract. This contract establishes the conditions and terms of the transaction, protecting the interests of both parties until the deed is signed.
When signing the deed, it is important to be aware that there will be some costs associated with the deed, namely the Municipal Tax on Onerous Transfers of Real Estate (IMT) and Stamp Duty, which must be paid during the process of formalizing the sale.
Sale of real estate between parents, children, grandparents, and grandchildren
According to Article 877 of the Portuguese Civil Code, the sale of real estate between parents and children or grandparents and grandchildren requires the consent of all heirs. This measure aims to avoid favoritism and prevent donations disguised as sales. Lack of consent may result in the sale being annulled. Therefore:

Money transactions between family members

When making a bank transfer, donation, or loan to family members, it is important to take certain aspects into account so as not to be surprised by a fine or family conflicts.


Donations between family members

Families often give money during holidays, birthdays, or other occasions. Although this gesture is made with good intentions, it can lead to some surprises when the amounts given are high. It is important to know that:
Between ascendants, descendants (parents, grandparents, children, and grandchildren) and members of a married or common-law couple, amounts up to €5,000 do not have to be declared for stamp duty purposes.
The same does not apply to gifts made between siblings, nephews, nieces, and uncles. If you have received a gift of more than €500, you must declare 10% of that amount to the state.


Loans between family members

Some people who are thinking of buying a house ask family members for help so they don´t have to resort to banks. In these cases, to ensure that everything is properly formalized, it is important to:
Sign a mutual contract – this should include all the conditions agreed between the parties involved in the purchase/sale of the property. For the contract to be legally valid, the signatures must be certified by a solicitor or notary;
In the case of loans exceeding €25,000, the mutual agreement is only valid if it is signed by public deed.


Source: idealistanews