DPA in the deed: a legal alternative for buying a house

Buying a home involves several essential legal steps to ensure the security and validity of the process. Among these steps, the DPA in the deed stands out – a concept that may seem technical, but is essential to understand. This article explains in an accessible way what the DPA is and what its role is in buying property in Portugal.

The Authenticated Private Document (DPA) represents an alternative to the traditional model of public deed. Instead of the parties formalising the purchase and sale contract at a notary's office, they can do so through a private document, which is then authenticated by a qualified professional: lawyer, solicitor, notary or land registry officer. This authentication gives the document the same legal validity as a public deed, ensuring the legal security of the transaction.

After choosing the property and negotiating the price, it is possible to choose to formalise the contract through a DPA, instead of carrying out the traditional public deed. The contract is signed between the buyer and seller and then authenticated to acquire legal force.

If a mortgage is involved, the bank will also participate in the process. In this context, the DPA can replace the public deed, allowing the loan and mortgage to be formalised with full legal and banking validity.

Main differences between the DPA and the public deed

Both documents have the same legal validity for formalising the purchase of a property, but the DPA offers some operational and financial advantages:

• It is a simpler, faster and less bureaucratic process;
• Authentication can be carried out at authorised locations, without the need for a notary to be present;
• The costs associated with the DPA (authentication and deposit) are generally lower than those of the public deed, which include IMT, stamp duty and notary fees;
• As with deeds, it is mandatory to register the property to guarantee legal ownership.

These advantages make the DPA an increasingly common choice among those who want to simplify the home buying process without sacrificing legal security.

Documents required to use the DPA

Formalisation through the DPA requires the submission of documentation similar to that required for a public deed:

• Valid identification documents for the buyer and seller (Citizen Card or Passport);
• Updated property registration document;
• Land registry certificate;
• Use licence;
• Energy certificate.

If bank financing is involved, documentation relating to the mortgage will also be required.

The importance of land registration after the DPA

Whether you use the DPA or a public deed, the next step is always land registration. It is this registration that officially transfers ownership of the property to the new owner. Without this registration, the transaction is not fully protected by law. The procedure is carried out at the Land Registry Office and involves mandatory costs.
The DPA has lower costs: the deposit is usually around £20, and authentications are affordable. The public deed, on the other hand, involves the payment of IMT, stamp duty and notary fees, which can be substantially higher. Both models require land registration and the payment of mandatory taxes.

Frequently Asked Questions

1) What does DPA mean in a deed?

It is the Authenticated Private Document used as an alternative to a public deed to legally formalise the purchase and sale of a property.

2) Does the DPA have the same validity as a public deed?

Yes. Provided it is authenticated by a qualified professional and registered with the Registry Office, the DPA has equivalent legal validity.

3) Can a DPA be used with a mortgage?

Yes. A mortgage can be formalised in a process with a DPA, without compromising rights or bank guarantees.

4) Is a DPA more economical than a public deed?

In general, yes. Authentication and deposit costs are lower, although land registry and taxes still apply.

5) What are the steps after signing the DPA?

After signing and authentication, it is mandatory to register the property so that it is legally transferred to the buyer's name.

6) Is it possible to choose between a DPA and a public deed?

Yes. Both options are legally valid, and the choice is up to the parties involved, based on costs, the simplicity of the process, and the professional support available.

Source: CASA SAPO