Selling a property to children is a common decision in many Portuguese families but can raise legal concerns and cause conflicts between siblings. While it is possible, there are specific rules in the law to ensure that all descendants are treated fairly and that there are no concealed favours. In this guide, we explain step-by-step how to sell a property to children or grandchildren safely, legally, and without causing family problems.
1) Assessing the Decision to Sell Property to Children
2) What Does Portuguese Law Say?
3) Why Consent from Other Children Is Necessary
4) When and How the Sale Can Be Annulled
5) Risks of Simulated Sales and Legal Consequences
6) Legal Procedures to Follow
7) Communication Care in the Family
8) Benefits of Selling Property to Children Transparently
1) Assessing the Decision to Sell Property to Children
Selling property to children can be a beneficial solution to help a descendant or anticipate part of the inheritance. However, this decision must be carefully considered, as it involves legal and emotional aspects that may affect the family in the long term. It is essential to ensure that the process is fair, transparent, and legally valid.
2) What Does Portuguese Law Say?
Portuguese law imposes specific rules for the sale of properties between ascendants and descendants. According to Article 877 of the Civil Code, parents and grandparents can only sell property to children or grandchildren if they obtain the consent of the other children or grandchildren. If this consent is not granted, it is necessary to go to court, which may authorize the sale.
3) Why Consent from Other Children Is Necessary
The requirement for consent primarily aims to prevent situations of favouritism and protect the inheritance rights of the other descendants. The law assumes that, in these situations, a disguised donation may be occurring, which could harm the legitimate shares that all heirs are entitled to by law.
4) When and How the Sale Can Be Annulled
If the sale is made without the necessary consent, any disadvantaged descendant can request the annulment of the contract. The deadline for such action is one year from the date they became aware of the sale or when they are no longer incapacitated (if applicable). This possibility is provided for in Article 877, paragraph 2, of the Civil Code.
5) Risks of Simulated Sales and Legal Consequences
The law also aims to combat simulated sales, which are often attempts to avoid legitimate shares or taxes on donations. In these cases, the authorities may consider the sale invalid and apply penalties. To avoid this, it is crucial that the transaction is real, at market value, and properly registered.
6) Legal Procedures to Follow
To sell property to children safely, follow these steps:
- Obtain written consent from the other children or grandchildren;
- Formalise the sale by public deed;
- Register the property in the buyer's name;
- Declare the actual value of the transaction;
- Consider the assistance of a lawyer or notary.
If consent is not possible, you must submit a judicial request for consent.
7) Communication Care in the Family
Even when everything is done according to the law, how the decision is communicated can prevent or cause conflicts. It is advisable to share the intentions with the children openly and clearly, explaining the reasons for the sale and ensuring that no one feels unfairly treated. Dialogue is key to maintaining family balance.
8) Benefits of Selling Property to Children Transparently
When properly managed, the process of selling a property to children can be:
- A way to provide financial help;
- A planned anticipation of the inheritance;
- A means to avoid future bureaucracy;
- A gesture of trust that strengthens family bonds.
However, everything depends on the transparency, legality, and fairness with which the transaction is carried out.
Selling property to children is legal, but it requires consent, proper documentation, and care with family emotions. Ignoring legal procedures can lead to disputes, annulment of contracts, and even divisions between siblings. To ensure a safe and conflict-free transaction, it is essential to respect the rights of everyone involved and seek legal advice if necessary.
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