What is it?
The Portuguese government has introduced a series of measures aimed at boosting the real estate market by increasing the supply of houses, reducing costs, and streamlining processes. In this context, the use license of the property and the technical file are no longer mandatory at the time of purchase and sale.
Main change:
Until the end of 2023, obtaining the use license was the seller's responsibility. Now, this obligation has shifted to the buyer, who must request the use license for the property they intend to purchase before signing the promissory contract of purchase and sale. This change may influence both the buyer’s decision and the granting of credit.
Advantages
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Allows for a greater supply of houses in the market:
The law permits the sale of properties with contingencies, such as non-approvable works, which often blocked transactions due to their complexity and associated costs. -
Simplifies commercialization:
This simplification avoids the long wait for the issuance of the use license, facilitating the conclusion of promissory contracts of purchase and sale without affecting the agreed deadlines. -
Reduction of administrative costs:
Obtaining the use license entails costs and waiting times, which can be avoided with this measure.
Disadvantages
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Less protection:
Since the responsibility now lies with buyers, they are less protected due to their lack of experience with bureaucratic procedures. -
Facilitates the sale of houses with licensing issues:
If buyers are not well-informed about the property’s conditions, they may risk purchasing a house with illegal and/or unlicensed works. -
More works without adhering to approved projects:
Municipalities must increase oversight to prevent this issue. -
Higher risk of legal disputes:
It is crucial for all parties involved to be aware of the necessary precautions to avoid purchasing a property that does not meet all legal requirements.
And housing loans?
Banks may decide whether to grant housing loans without the presentation of the property’s use license. It is believed that banks will continue to require this document to mitigate risks and ensure loan guarantees. In practice, the granting of housing loans may still depend on providing the use license.
In practice, how can I protect myself?
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Check the documentation:
Buyers should ensure the existence of the property’s technical file or use license before committing to the purchase, as these documents may be required for housing loans or future sales. -
Opt for detailed contracts:
Buyers should choose a promissory contract of purchase and sale that is as detailed as possible and subject to conditions, ensuring an informed process regarding the property’s condition. -
Rely on specialists:
Buyers can entrust the process to market experts, such as real estate consultants, who are responsible for clarifying all procedures and mechanisms.
