Tenant Rights During Property Sale in Portugal: Pre-Emption and Lease Continuity

One of the most important protections in Portuguese rental law is the principle of emptio non tollit locatum — a Latin legal maxim meaning "a sale does not break a lease." Under Art. 1057º of the Civil Code, when a rented property is sold, the new owner automatically steps into the shoes of the previous landlord. The lease continues under the same terms.

This protection applies when the lease is registered at Finanças or when the tenant has been in possession of the property for more than 6 months. For tenants, this means a property sale is not grounds for eviction — the new owner must honour the existing contract.

Under Art. 1091º of the Civil Code, tenants with leases of more than 2 years have a pre-emption right (direito de preferência) when the landlord decides to sell the property. This means:

The notification must be made by registered letter (carta registada com aviso de receção) and must include: the sale price, payment terms, identity of the proposed buyer, and any other material conditions.

For a property sale involving a sitting tenant, the practical steps are:

If the lease is registered at Finanças: - The lease automatically binds the new owner. No action needed from the tenant. - The new owner must respect all existing terms, including rent amount, duration, and deposit.

If the lease is NOT registered: - The tenant is still protected if they have been in occupation for more than 6 months (Art. 1057º nº 2). - However, registration provides stronger protection and is always recommended.

Regarding the sale price: The pre-emption right means the tenant can buy the property at the exact same price and conditions offered to the third-party buyer. The tenant cannot demand a lower price or better terms — the right is to match the offer, not to negotiate.

Example: If the landlord receives an offer of €250,000 with payment in 60 days, the tenant must be willing to pay €250,000 within the same 60-day period to exercise the right.

CompliantLease generates contracts that include provisions addressing property transfer. The lease registration reminder in the post-generation checklist encourages landlords to register the contract at Finanças, which automatically protects the tenant's position in case of a sale. The contract's termination clause (Clause 8) clearly states the conditions under which the lease can and cannot be ended — a property sale is not listed as a valid termination ground.