Decree no. 2/2021, of 9 August was recently published, which approved a few amendments to articles 377, 714, 875 and 1143 of the Civil Code (approved by Decree-Law no. 47344, of 25 November 1966).
 

The amendments introduced aim to adapt the Civil Code to the regime of the Land Registration Code (approved by Decree-Law no. 2/2018, of 23 August), pursuant the need to reduce bureaucracy, streamline procedures, allowing the introduction of new forms of agreements when immovable assets are involved[1].
 

The following amendments are highlighted:
 

   (i) Notarized documents

Article 377 (2) of the Civil Code provides that in cases of mortgage agreements, property sale agreements and loan agreements concluded by means of model agreements approved by a competent authority, the notarization of the signatures confers the same probative force as an authentic instrument.
 

   (ii) Form of creation of voluntary mortgage

The creation of a mortgage over immovable assets was slightly modified, with the new wording of article 714 providing that the creation or modification of a voluntary mortgage shall be performed through a public deed, will or model agreement approved by a competent authority, following the model agreements described in the Land Registration Code.
 

   (iii) Form of execution of property sale agreements

Property sale agreements may follow the form of a public deed or also models agreements approved by the competent authority, as described in the Land Registration Code.
 

   (iv) Form of execution of loan agreements

Article 1143 of the Civil Code now states that a loan agreement is valid if it is executed by a private document or in a model agreement approved by the competent authority, provided that it is duly notarized.
 

The Decree entered into force on the date of its publication.
 

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[1] In accordance with article 188 of the Land Registry Code.