Legal Perspective
Deciding to buy off-plan property continues to attract a growing number of clients in Portugal, especially in urban areas where the supply of ready-to-move-in properties is limited or not very competitive. This type of acquisition involves purchasing a property before construction is completed, or even before it has started. The buyer commits to acquiring the property based on a detailed project, relying on the plans, descriptive reports, and deadlines presented by the developer, meaning that the decision requires careful analysis, technical oversight, and some legal knowledge.
Unlike a traditional transaction, where it is possible to visit the property and assess its condition, purchasing a property off-plan requires anticipation, trust, and access to technical construction documentation. The property is sold based on elements such as:
- Floor plans showing room layout;
- Finishes schedule and material selection;
- Specifications outlining the builder's commitments;
- Preliminary building permits from the local authority.
Once the decision is made, the process begins with the signing of a promissory purchase and sale agreement, which sets the project deadlines, delivery dates, deposit amounts, possible deposit increases, and penalties for non-compliance. Upon signing this agreement, the buyer pays the deposit to the developer, usually ranging from 10% to 30% of the purchase price.
From that point onward, payments may take place in two different ways, depending on the type of financing agreed upon:
- Stages Payments: these follow the construction milestones — excavation, foundations, structure, finishes, among others. It is essential that these stages are clearly described in the contract and tied to the actual completion of the technical milestones.
- Conventional Mortgage: in some cases, especially when the bank recognizes the developer and the project, it is possible to obtain a traditional loan that releases the full amount at the time of the deed, without the need for staged payments.
In 2025, several factors contribute to increased interest from potential buyers in acquiring off-plan property:
- More affordable prices compared to the market for used or refurbished properties;
- Potential for property appreciation until delivery;
- Possibility to choose and customize the space (e.g., selecting finishes);
- Better energy efficiency due to new legislation and technical requirements;
- Favorable financing conditions, with falling interest rates and public guarantees for buyers up to 35 years old.
It is also important to highlight that, unlike older properties, new off-plan properties adhere to more stringent regulations for habitability, safety, and sustainability, resulting in more energy-efficient buildings with lower long-term costs, as noted in sector analyses in recent quarters.
At any stage, the buyer should require guarantees when purchasing the property and maintain the right to technical oversight during construction. Although visiting the site is not mandatory, it is advisable to monitor progress and ensure that materials and technical solutions match the contractual documentation.
Finally, for those considering buying off-plan as an alternative to refurbishing older properties, it is important to compare timelines, tax burdens, and associated risks. Both options have benefits, but new construction tends to involve less bureaucratic intervention and reduced reliance on public incentives.
Advantages, Risks, and Legal Safeguards in Off-Plan Purchases
Benefits and Concerns of Buying Property in Development
Buying a property during construction offers the opportunity to choose and personalize the space, from layout to finishes. Many buyers value the freedom to create a home that truly meets their needs. The specifications include options for materials and finishes, allowing customization of certain elements and ensuring that every detail aligns with the buyer’s personal preferences.
A significant financial advantage lies in the potential appreciation of the property after construction. Purchasing during the construction phase may result in more competitive prices, particularly noticeable during periods of economic recovery, as observed in the 2025 market, which shows signs of growth and dynamism. Additionally, financing through a standard mortgage allows access to usual lending conditions, with interest rates currently on a downward trend.
However, those intending to buy off-plan should be aware of associated risks. Construction delays, developer bankruptcies, and unauthorized project changes are common risks. Protection lies in requiring guarantees through the promissory purchase and sale agreement.
Ensuring legal security involves hiring specialized lawyers to review contracts and project documentation. This helps mitigate risks, ensure compliance, and verify the developer’s credibility.
Moving into the contract details phase, it is essential to emphasize the importance of technical oversight. This ensures commitments are met and the project proceeds according to what was agreed in the promissory purchase and sale agreement. We will continue exploring these aspects in the following sections.
Key Aspects of the Promissory Contract and Construction Oversight
Promissory Contract and Construction Control: What Cannot Be Overlooked
The greatest risk in buying off-plan property lies in the absence of enforceable guarantees at the time of signing. Many buyers overlook that the promissory purchase and sale agreement must be drafted with more rigor than a standard contract. This is the true instrument of protection throughout the construction process.
The contract must include:
- Full identification of both parties and the property;
- Detailed description of the unit, usable area, annexes, and location;
- Concrete deadline for the execution of the final deed;
- Payment stages, with percentages clearly linked to physical construction milestones;
- Specific clauses for contract termination in case of delays or unauthorized changes to the detailed project;
- Specification of the property purchase guarantee provided by the seller (such as a deposit, bank guarantee, or escrow/check guarantee);
- Consequences in the event of withdrawal by the buyer or the developer.
Omitting any of these elements may make it difficult to enforce legal responsibilities later. It is equally important to request the signed specifications, as well as copies of floor plans and permits issued.
Alongside the documentation, construction oversight is essential. While not mandatory, it allows the verification of deviations from the contract. It is recommended that a trusted technical expert be present during scheduled site visits with the developer.
In practice, anyone intending to buy off-plan property should act with the same caution as when supervising a long-term investment. Legal security begins long before the public deed is signed.
Practical Guidance for Buyers in 2025
Making Informed Decisions with Legal Certainty
In 2025, buying property requires more than ever an informed and legally grounded approach. With increased demand for off-plan properties, aggravated by the shortage of ready-to-move-in units in major urban centers, buyers face greater pressure to make quick decisions — not always the safest.
Before signing any promissory purchase and sale agreement, it is prudent to verify the project’s status, the legality of permits, and the developer’s financial solidity. Relying solely on the development brochure or marketing images is insufficient. A detailed project assessment and validation of the specifications are essential.
We recommend the following essential practices:
- Request proof of land ownership and building permit approval;
- Ensure all contract clauses include realistic deadlines and purchase guarantees;
- Include clear conditions for deposit refund in case of non-compliance;
- Set dates for the execution of the public deed and obtaining the occupancy permit;
- Include the right to monitor the construction during structural phases.
Furthermore, financing arrangements must consider the construction phase and documents presented to the bank. Financial institutions assess project risk and may request additional guarantees — a matter requiring qualified legal attention.
At Beyond Legal, we combine document analysis with real estate due diligence and negotiation support. Our intervention prevents future disputes and safeguards your investment. If you are buying off-plan property, ensure legal viability first — the rest can be built.
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