The recent ruling of the Supreme Court of Justice (STJ) no. 14/2024, published in the "Diário da República", brought a decision of great relevance to the real estate sector in Portugal.

The central issue addressed was the following: when the courts sell a mortgaged property, does a rural lease contract entered into after the mortgage remain valid or is it extinguished?

This ruling clarified an issue causing uncertainty for both mortgage lenders and rural tenants. By stating that the sale of the mortgaged property does not cause the rural lease entered into afterward to lapse, the decision reinforces the legal certainty of lessees and redefines the understanding of the impact of foreclosure on these contracts.