Coronavirus: Buying and selling property in times of social distancing

We are facing a Coronavirus (Covid-19) pandemic and, as a result, administrative solutions have been adopted and a state of emergency has been declared. All this has had an impact on the whole of the economy and it has also had serious adverse effects on property (real estate) transactions, which are subject to specific formalities under the law.

There is expected to be a natural slowdown in the completion of real estate transactions in the coming weeks/months. The more immediate effects of the current situation, and of the administrative measures that continue to be adopted to control the pandemic, are especially reflected in relationships that have already been established. This is particularly so in transactions that are in the final phase of negotiation, or where contracts for sale and purchase have already actually been signed.

The greatest obstacles that we have to overcome at this moment and in this context are (i) the reduced availability of entities qualified to formalise notarial acts – in-person recognition of signatures, authentication of private documents and/or deeds; and (ii) the unavailability of the parties themselves because they are in self-isolation or because they cannot travel due to the limitations on air and other forms of travel.