Expat homeowners in Portugal may find themselves trapped and unable to sell if they cannot produce official documents under a new law.
Anyone owning waterside property who cannot prove the land registry approved buying the land could face hefty fines and even confiscation of their home under the law.
The properties coming under the new rules must be built with 50 metres of the Atlantic Ocean or within 30 metres of any inland rivers, canals or lakes.
The rules are to curb illegal building that breaks environmental rules and spoils the landscape.
The Portuguese government has relaxed the new Water Resources Ownership 2005 laws following protests from expats and other landowners.
Proof of ownership
Originally, the government wanted proof that the waterfront land had been privately owned for at least 150 years.
Under pressure, politicians backed down and only want proof of private ownership since 1951 and scrapped a July 1 deadline for delivering the paperwork.
Now, the requirement is likely to become part of any conveyancing process when a home is sold – and that’s where the problem comes in for many expats.
Many modern resorts and estates which are enclaves for expats were built in the county in recent years and developers have not handed on the paperwork and gone broke in the recession.
The episode is another warning for expats buying homes abroad.
In Cyprus, greedy developers took out loans and retained the titles to properties, while in Spain developers built thousands of homes without permission and sold them to unsuspecting expats who then faced a legal challenge to try and evict them.
Buying a home overseas can be difficult – and knowing who to trust even harder.
Tips for expat homebuyers
Here are some tips for expat buyers –
- Never use a lawyer recommended by an agent, developer or anyone else connected with a sale – always choose an independent expert to represent you
- Get independent translations of important legal documents
- Search online for information about developers and agents – if other expats have had problems with them, there’s probably a forum online detailing the issues
- Never sign a document or hand over cash until you are sure of what you are signing and the legal obligations that come with the contract
- Go to a bar and chat with locals about their views of any development – they are likely to know about any local problems
Don’t forget that many favourite British expat destination countries have official web sites published in English online.
