New-build defects in Portugal: how the 10-year and 5-year warranty works

If you bought a new home from a developer in Portugal, the law gives you a long warranty. A lot of buyers don’t get the benefit of it because they don’t know the periods, report defects by phone, or wait too long. Here is how it works and how to use it.

Which law applies

If you bought as a consumer from a professional seller under a contract signed on or after 1 January 2022, the rules are in Decree-Law 84/2021. For older contracts, or where you hired a builder directly to build for you, the Civil Code applies (article 1225 for construction). Your lawyer will confirm which applies to you.

The periods under DL 84/2021

• 10 years for defects in structural elements (elementos construtivos estruturais).
• 5 years for everything else: waterproofing, finishes, services, windows and doors.
• The warranty clock stops running from the day you report the defect.
• Once you’ve reported it, you have 3 years to go to court if it isn’t put right. That period also stops while repairs are under way and during consumer dispute resolution.

The old requirement to report a defect within a fixed time of finding it was dropped for these contracts. Waiting is still a bad idea. A late report is harder to prove, and by then the defect has usually done more damage.

Older contracts and builder contracts

Under article 1225 of the Civil Code the warranty runs for 5 years from handover. You have to report the defect within a year of finding it, and bring a claim within a year of reporting. Those deadlines are short and they are enforced.

What we find in new builds

The same faults come up again and again: tiled terraces with no proper membrane underneath, poor sealing around windows, bathroom extract fans that don’t extract, open joints and failed silicone around showers, condensation and mould in the first winter, cracked render and drainage laid without enough fall. Most are within the 5-year period. Some, left long enough, turn into something bigger.

How to report a defect so it counts

• Write to the developer. A registered letter with acknowledgement of receipt (carta registada com aviso de receção) is the safest record. An email they reply to also helps.
• Say what the defect is, where it is and when you found it.
• Attach dated photos.
• Ask for it to be repaired within a reasonable time, and keep copies of everything.
• Report each new defect as you find it. Don’t save them up.

When the developer ignores you

Consumer arbitration centres (centros de arbitragem de consumo) handle disputes like this and are usually quicker and cheaper than court. For bigger defects, use a lawyer. Either of them will want evidence. We write independent defect reports: what the defect is, its likely cause, what the repair involves and a cost range.

Before you take the keys

The cheapest time to deal with defects is before you sign for the property. Book a handover inspection and read what you’re signing at the auto de receção, including how to sign it with reservations.

General information, not legal advice. Confirm which rules apply to your contract with a Portuguese lawyer.

Sources: Decreto-Lei n.º 84/2021 (arts. 23.º and 25.º); Código Civil, art. 1225.º.

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