Let’s initially discuss the paperwork required by the estate agent. Under Decree Law 77/99 all Government Licensed Estate Agents are required to obtain the following documentation from the vendor thus enabling them to establish that the property has full legal status. No agent can officially list a property without receiving the necessary paperwork. As all Licensed Estate Agents are liable to periodic inspection by their governing body, IMOPPI, they must ensure copies of these documents are in place.
The required documents are as follows:
Deeds/Escritura Notarial de compra e venda
This document indicates the title of acquisition of a property. The originals are held by the Notary Office where they were signed.
Finance department registration/Caderneta Predial
This document shows the description of the property in the finance department and its fiscal value on which rates are charged.
Registration Cerificate/Certidâo de Teor Registral
This document confirms as to whom the property is registered to and also gives a description on the “Caderneta Predial”, failing which one of the 2 is not correct and should be rectified.
Habitation Licence/Licença de Utilização
This document confirms that the property was built according to the (Camara) Local Council plans and specifications and tat the property has been inspected for habitation upon completion.
Plans/Projectos de Arquitectura
It is worthwhile obtaining a set of approved plans from the Camara (Local Council) to check that what has been built is in accordance with the originally approved plans. It is very easy to add on a bedroom or garage without permission!
Bore hole licence/Licença para captação de agua
This document confirms that the borehole is registered with the relevant authority.
Personal papers
Agents will require copies of your Fiscal Number, Passport/Residencia
Further information
As most owners do not hold updated copies of these documents in their possession you are well advised to contact your lawyer BEFORE you instruct any agents and ask them for updated copies of these documents OR if you have the energy and the knowledge visit the Camara and Financial Departments yourself and make the necessary requests as this normally takes several days for the updated documents to be produced. The registration certificate and caderneta predial should have been obtained or validated less than 6 months ago. The other documents do not have a validity date.
There is one important issue that should be looked at in some depth and this is the question of Habitation licences, especially for older properties. Recent changes in legislation have caused problems as to whether a Habitation Licence is required for a property. A house either has a Habitation License or a Certificate; issued by the local Camara, confirming tat it does not require one. Only the Camara can certify this situation. The requirement of Habitation Liences was introduced by Decree – Lei 38/382 dated 7th August 1951 therefore houses built before that date are not required to have Habitation Licences.
As the current building regulations become stricter the Notaries were advised that they should require an updated Certificate from the Camara to ascertain that there were no unlicensed alterations to the properties being sold. Historically the system had been badly abused in that the method of proving that a house did not require a Habitation Licence was flawed. Any people purchased houses still registered as old cottages which in fact had been improved, renovated and sometimes completely rebuilt – without proper licences.
By not reporting the alterations to the local authorities all the house documents would contain the very original description and the Notary would accept that an old cottage was being sold. A Certificate from the Tax department stating that the house was inscribed before 1951 would have been accepted.
A Certificate from the Tax department should no longer be accepted and it relies on the discretion of the Notary to accept a certificate from the Tax Department in the case of properties without reported alterations. However, for the purchaser’s own security, a Certificate from the Camara should always be obtained when in the presence of a property which does not have a Habitation licence.
Obtaining a Certificate from the Toun Council (Camara) varies but may well involve the following:-
• Set of Topographical plans • Photographs • Property documents • Statement of two local witnesses
However if the Camara Inspectors report that the property has suffered alterations, which require alterations, which require licensing, a very long and bureaucratic process will have to start in order to legalise such works. In this case the sale of the house will, have to wait until the Habitation License is issued.
Selling a property
