Anyone buying, selling or financing a property in Portugal comes across three documents that seem to say the same thing and do not. Each has its own function, a different source and a different validity.
Caderneta predial urbana (tax record)
A document from the Tax Authority with the property's fiscal identification: matrix article, typology, areas, taxable value and fiscal holders. It is the basis of the annual municipal property tax (IMI). The caderneta does not prove ownership: it only proves someone is the fiscal holder. A house can remain fiscally registered to someone who sold it years ago if nobody updated the matrix.
Certidão de teor (permanent land registry certificate)
A document from the Land Registry with the property's legal situation: who owns it and what rights and charges exist over it — mortgages, liens, usufructs, easements. It answers the decisive questions of a purchase: is the seller the owner? Are there debts attached to the property? It can be requested online and is valid for six months, renewable.
Use licence (licença de utilização)
A document from the municipal council authorising the use of the building for its intended purpose (housing, commerce), issued after the works. It proves the construction was licensed and inspected. Without a use licence, a bank will normally not lend and the deed may not be possible. Buildings from before 1951 may not have one, in which case a specific council declaration applies.
Where discrepancies appear
All three documents should describe the same property: same typology, same areas, same unit. Common discrepancies in Madeira: annexes and extensions built without a licence that appear in the matrix but not in the licensed project, garages swapped between units, different areas between matrix and registry. Each discrepancy must be corrected before the contract, never after.
What to check before buying
- Up-to-date caderneta predial with the correct holder and areas.
- Recent certidão de teor: the seller is the owner and there are no unresolved charges.
- An existing use licence compatible with the intended use.
- Same typology and areas across all three documents.
- Annexes, garages and storage rooms identified and registered.