“It’s surprising that in 2024, while we’re still addressing the issues that arose in the 1980s and 1990s regarding illegal housing, such as those in Illegal Genesis Urban Areas, the door is now being opened for these cases to reappear,”
criticizes the Dean of Notaries.
You can read more about these statements here.
The Decree-Law No. 10/2024 has published a second legislative reform as part of the Simplex package in urban planning, aiming to simplify administrative procedures in the real estate sector.
However, the approved measures have raised concerns among industry professionals, who fear the resurgence of old problems such as the lack of adequate property licensing.
The measure causing the most concern is the exemption from the need for a property usage license or technical file for properties built after 2004. This document can now be replaced by a declaration issued by Municipal Councils.
One pressing concern is that with these changes, the burden on buyers has become more significant.
Jorge Batista da Silva, Dean of the Order of Notaries, expresses apprehension about the potential consequences of the new legislation.
He warns of the possibility of consumers being more exposed to risk in transactions.
The Dean goes further to suggest that, with this law, a consumer buying a refrigerator may have more guarantees than someone buying a house.
In other words, while streamlining processes is desirable, it raises questions about the legal security of real estate transactions. In this case, it will be up to buyers to take extra care to inform themselves about all the risks associated with purchasing a property without a usage license. They are thus in a more vulnerable position during negotiations and formalization of the property acquisition, which was not the case before.
In turn, Francisco Bacelar, President of the Association of Real Estate Mediators in Portugal (ASMIP), and Hugo Santos Ferreira, President of the Portuguese Association of Real Estate Developers and Investors, express similar concerns, emphasizing the importance of striking a balance between simplification and legal security.
It is clear that streamlining administrative procedures is necessary to promote real estate development.
However, it is crucial to ensure that these changes do not compromise the safety and rights of consumers. It is, therefore, essential for real estate transactions to safeguard transparency and clarity. This is absolutely necessary to avoid possible controversies and legal problems in the future.
The Order of Notaries thus calls for a more balanced wording in property purchase and sale contracts. It encourages responsible professionals to include clear warnings about the urban and criminal implications in the drafting of deeds and private sale documents.
We will provide more details about the approved changes soon in a more extensive article that we will share with you.
Thank you for reading,
The GSN team