Selling property to children or grandchildren without family or legal conflicts.

When it comes to selling real estate, an owner may decide to make a deal with a family member instead of putting the house on the market. Specifically, they may choose to sell the house to their son or grandson. However, such a situation, like estate management, can lead to conflicts and even unpleasantness within family groups. Additionally, there is a risk of violating the law on selling real estate to children or grandchildren. To avoid problems - or even more serious issues - we will now explain, with legal backing, how to proceed in such real estate transactions.

"Problem of favoring certain children and grandchildren""

"The problem of favoring certain children and grandchildren over others is a very common situation in our reality, when for various reasons some children and grandchildren find themselves in a more advantageous position compared to others," says the law firm Teixeira Advogados e Associados in this article written for idealista/news.

It should be noted that such things have been happening since ancient times, as shown, for example, in the sacred scriptures of the book of Genesis, when the birth of Isaac's children is explained, and it is clear that, despite having twins, Isaac preferred Esau because he was skilled in hunting, while his wife Rebekah preferred Jacob. Studies conducted worldwide confirm that65% -70% of parents in their family relationships show a preference for one of their children, usually the youngest.

Law on the sale of real estate from parents and grandparents to children and grandchildren

** *Thus, the law and legal system understood that a real estate sale transaction from parents and grandparents to children and grandchildren deserves special attention, not only because it is a relevant issue in the lives of Portuguese families, but also because this transaction often aims to circumvent legality.*

What does the law say about the sale of real estate from parents and grandparents to children and grandchildren? This is defined by Article 877 of the Civil Code of Portugal, which states that "parents and grandparents cannot sell to their children or grandchildren if other children or grandchildren do not agree to the sale; the consent of the descendants, if it cannot be given or denied, may be replaced by a court decision."

This article tells us that the sale of real estate from parents to children and from grandparents to grandchildren requires the consent of other children and grandchildren.

The purpose of the article is about selling real estate to descendants.

What is the purpose of this article about selling real estate to descendants? The law is based on protecting the interests of other children and/or grandchildren in situations where they are at a disadvantage due to favoritism. This is because, according to the provisions of Article 287 of the Civil Code, only those whose interests are established by law have the right to contest the invalidity, and in the case of selling to one of the children, the right to act belongs to the children or grandchildren whose consent was not obtained in accordance with the provisions of Article 877, paragraph 2 of the Civil Code.

Another reason for the existence of this article is the attempt of the law to minimize transactions that could be deemed fictitious and harm the legitimate rights of children/grandchildren in cases where it is believed that proving the fictitious nature will be more difficult, including sales from parents and grandparents to children or grandchildren.

The deadline for canceling the sale of real estate to children or grandchildren

What is the deadline for canceling the sale of real estate to children or grandchildren? According to paragraph 2 of Article 877 of the Civil Code, this cancellation action can be filed within one year from the date of becoming aware of the contract or from the moment of incapacity, if it concerns an incapacitated person.

Actions in a similar situation

What should someone in a similar situation do? As we can see, the law prohibits parents from selling not because the sale itself contradicts public interests or any other interests, but because there is a concern that instead of a sale, they might be making a living donation. Thus, the law requires a preliminary check to ensure that the sale is not fictitious.

“Therefore, it is recommended to consult your lawyer and explain your situation in order to receive more detailed advice,” concludes Teixeira Advogados e Associados.