New rules require urban planning licence to be stated when buying a home. Omission may render the transaction void from September.
Source: Adobe Stock
Author: Redaction
Home buying with new planning rules
Buying a home in Portugal will undergo significant changes with new rules coming into force in September. The aim is to strengthen transparency in transactions and ensure greater legal certainty in the housing market, through the mandatory reference to the urban planning certificate in all real estate transactions.
With these changes, notaries, land registrars, lawyers and solicitors will be required to explicitly state whether the property has an urban planning licence at the time of the deed. This requirement applies to land, buildings and units, directly affecting those who buy, sell or invest in housing.
Transparency in deeds and risk of nullity
The new rule establishes that the absence of reference to the urban planning certificate may render the transaction voidable. This means the contract is valid but can be challenged later by any of the parties involved.
The legislation distinguishes several possible scenarios, including cases where the document is provided, merely declared or does not exist. In all cases, failure to record the information in the deed now has significant legal consequences, reinforcing transparency in the real estate market.
This change aims to reduce risks for buyers and increase clarity in home purchase transactions, in a context where urban planning information becomes a central element in acquisition decisions.
Licences, registration and new technical requirements
The concept of an urban planning certificate is also redefined, now depending on a set of documents such as applications, proof of fees and administrative decisions. A simple payment receipt is no longer sufficient to validate an urban planning operation.
Prior notifications and licences now follow more detailed rules, including compliance declarations and additional documentation, increasing technical requirements while also strengthening legal certainty for buyers and investors.
Subdivision operations must also be mandatorily registered, with direct communication between municipalities and land registries whenever changes or invalidations occur, allowing stricter monitoring of property status.
Market impact and municipal rules
The new urban planning rules also affect municipal fees related to construction. Municipalities must now define clear criteria and limits for charges, reducing the unpredictability that previously existed in the housing sector.
In addition, legal restrictions are introduced on municipal regulations that impose requirements or fees without a legal basis, making such rules invalid if they do not comply with the law. In the case of subdivisions, rules become more flexible regarding guarantees and encourage affordable housing solutions, balancing construction costs and housing supply.
These changes aim to simplify procedures, increase transparency and strengthen confidence in the Portuguese housing market, with direct impact on buyers, developers and investors.
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