HABITAÇÃO MAIS and SIMPLEX
Innovation in the Portuguese Real Estate Market
Portugal is currently witnessing a phase of significant transformation in its real estate market, driven by the recent implementation of Decree-Law no. 10/2024, dated 8 January. This law, which arises within the SIMPLEX and "Habitação Mais" framework, simplifies the procedures relating to obtaining construction authorisation and waives the requirement to present the building's use licence at the time of signing a sale and purchase agreement. It brings important changes, especially regarding the transfer of ownership of urban properties.
Waiver of Use License Display
One of the crucial aspects of this reform has a significant impact on buyers. Article 19 of that decree addresses the transfer of urban properties. Previously, presenting the use licence was essential to sell urban properties. Now, the decree-law only requires that the sale and purchase agreement informs the parties that the property may not have the urban titles for use or construction. Previously, presenting the use licence was an indispensable requirement to enter into sale and purchase agreements of urban properties. However, the new decree-law innovates by stipulating that, during legal transactions involving the transfer of ownership of urban properties, it is sufficient to inform the parties about the possible lack of necessary urban titles, allowing the waiver of the use licence display.
This change is fundamental, as it represents a shift in the usual approach to real estate transactions. Since 1 January 2024, this new measure requires buyers to be more vigilant and carry out additional due diligence to ensure that the property acquired is free of urban irregularities. Furthermore, presentation or proof of the existence of the housing technical file at the time of purchase is no longer required.
Challenges and Opportunities in the New Landscape
The legislative changes bring profound implications for all stakeholders in the real estate market, from developers and investors to buyers and sellers. The simplification of bureaucratic processes not only speeds up real estate transactions but also reduces associated costs, potentially increasing the appeal of the Portuguese real estate market for investors, whether national or international.
However, the advantages come with challenges. The waiver of the use licence display raises questions about the safety, quality and legal compliance of urban properties. Therefore, it is essential that professionals in the sector are duly informed and prepared to guide their clients. It is advisable that consumers, when acquiring a property, are accompanied by specialised technicians – lawyers, solicitors, architects or civil engineers – to verify its compliance.
Conclusion: a bold step in the real estate sector
The implementation of Decree-Law no. 10/2024 is a bold step in the modernisation of the real estate sector in Portugal. This legislation paves the way for greater flexibility and efficiency in real estate transactions, but also places an increased responsibility on sector professionals to ensure that transactions are carried out with due diligence, focusing on the safety and quality of properties.