SUCCESSION ALERT: End of Inheritance Deadlocks? New Regime Allows Property Sale After Two Years

A significant legislative amendment has recently been approved in Portuguese Succession Law: from now on, a single heir can trigger the sale of a property within an undivided inheritance, provided that two years have passed since the opening of the succession.

This measure aims to combat the indefinite "legal limbo" of properties, often caused by a lack of consensus among co-heirs or the inertia of certain interested parties.

The Civil and Succession Law team at Global Lawyers summarizes the key points of this new rule:

1. The End of Mandatory Undivided Status

Until now, selling an asset inherited by multiple people generally required the agreement of all parties or a lengthy judicial inventory process. With this new law, the right "not to remain in undivided ownership" is reinforced. After two years without a partition, any heir can trigger the sale process, even if the others object.

2. The Two-Year Grace Period

The law established a two-year period as a reasonable timeframe for heirs to attempt an amicable agreement. Once this time expires, the law prioritizes asset liquidity and the preservation of value, preventing properties from deteriorating due to a lack of management.

3. Procedure and Right of First Refusal

Although one heir can trigger the sale, the remaining co-heirs retain their right of first refusal (direito de preferência). This means that before the property is sold to a third party, the other heirs have priority in acquiring the share of the person wishing to sell, at market price.

4. Impact on Family Estate Management

This change serves as a direct incentive for negotiation. Knowing that any heir can "force" a sale after 24 months, families are encouraged to resolve partitions more quickly and with less litigation.

Is your property stuck in an undivided inheritance? This new law opens a window of opportunity to resolve situations that have dragged on for years. The Global Lawyers team provides assistance in mediating between heirs and managing the technical aspects of these new sale processes, ensuring your property rights are protected.

Contact us for a consultation regarding your inheritance.

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