Penhoras Portugal Courses

Penhoras in Portugal is a type of real estate collateralization that is available to both individuals and businesses. It is one of the oldest financial instruments in the country and has been in use since the reign of King Afonso Henriques in the 12th century. It is a form of security that is placed over real estate that is owned by an individual or corporation as a guarantee of debt repayment. Penhoras have historically been used to secure the repayment of loans and are generally favored by banks and other lenders. They allow banks to essentially lend against the value of a piece of real estate without actually owning it. This protects the lender in the event that the borrower fails to repay the debt, as the penhora places the property in their exclusive and secure possession. When two parties enter into a penhora agreement, the lender provides a loan and the borrower signs a deed granting the lender a pledge over the real estate as security for the loan. The deed is registered with the local court, and in the event that the borrower defaults on the loan, the lender can then foreclose on the property and use the proceeds from the sale to pay the debt. Penhoras are widely used throughout Portugal and are a popular way for individuals and businesses to secure loans. They provide an efficient and secure way for lenders to evaluate and protect their investments, and for borrowers to get access to much-needed capital.