Recently, it was reported that some real estate agents in the Algarve were selling properties without the knowledge or authorization of the rightful owners. Unfortunately, this type of scam has been on the rise, especially in high-demand areas like the Algarve, where many homes belong to foreign owners or are left unoccupied for extended periods.
These situations not only cause significant financial loss for buyers but also damage the credibility of the real estate sector.
But how is this even possible? And more importantly, how can we protect ourselves?
How do these scams work?
In many cases, fraudsters pose as agents or intermediaries, forge documents (such as powers of attorney or identity documents), and list properties for sale on real estate platforms. When they find an interested buyer, they quickly move forward with the sale process, trying to avoid thorough verification of the documents.
What precautions should you take before buying a property?
If you're thinking about buying a home — whether in the Algarve or elsewhere — here are the main precautions you should take to avoid falling victim to a scam:
1 - Verify the legitimacy of the real estate agent
Confirm that the agency has a valid license issued by IMPIC (Instituto dos Mercados Públicos, do Imobiliário e da Construção).
You can check this here: https://www.impic.pt/impic/pt-pt/consultar/empresas-titulares-de-licenca-de-mediacao-imobiliaria
Be cautious of “agents” who request upfront payments without formal documentation or a mediation contract.
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2 - Request the legal documentation of the property
Caderneta Predial: issued by the Portuguese Tax Authority, it shows the registered owner and tax information of the property.
Permanent Land Registry Certificate: available online, it confirms the current legal owner of the property.
Usage License: essential for residential properties.
Technical Housing Sheet (for properties built after 2004).
3 - Confirm the identity of the seller
Ask for personal identification (Citizen Card or Passport) from the seller(s).
If you're dealing with a representative (e.g., through a power of attorney), request the notarized document and, preferably, have its validity confirmed by a lawyer or notary.
4 - Consult an independent lawyer or solicitor
A qualified professional can verify all documentation and safeguard your interests before you sign any promissory contract or deed.
Conclusion
The real estate market in Portugal is, for the most part, safe and well-regulated. However, situations like the one recently exposed in the Algarve remind us of the importance of acting with caution.
If you're buying a home, make sure you conduct the necessary checks, request all relevant documentation, and don’t hesitate to hire professionals to ensure a secure and smooth transaction.
Buying a home is a big step — make sure you do it safely!
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