Portugal is facing a strong housing problem, due to the high lack of supply for demand, accompanied by high house prices, at a time of falling purchasing power, escalating inflation and rising interest rates. To try to respond to this challenge, the market has been developing solutions. And converting properties allocated to services/commerce into housing is one of them.
Inspired by other countries, where the transformation of shops, warehouses and offices into homes has become "fashionable" - namely to combat the stock problem in the residential market.
What is the change to the legal regime of horizontal property?
The amendment to the legal regime of horizontal property, which now allows a property to change its purpose for residential use without needing the authorization of the condominium, came into force on January 8. But there are certain rules and deadlines that you must comply with in the face of this change.
Who gives the alert is the Portuguese Association of Condominium Management and Administration Companies, in view of the published decree-law that allows changing the purpose for which a fraction is intended FOR RESIDENTIAL USE, without the condominium previously authorizing it.
The diploma is explicit: "The alteration of the purpose or use for which each fraction is intended for housing does not require authorization from the other co-owners".
But what is the purpose of the measure? It aims to increase the supply of housing, to simplify the alteration of the constitutive title of fractions that previously had another purpose, such as a commercial store.
Understand the rules and deadlines stipulated, however, in view of this measure already in force.
What are the rules to be complied with in this measure?
According to APEGAC, quoted by Idealista, "the fact that the condominium owners now do not have to authorize the change of the end of the fraction, when it is for HOUSING, does not mean that the fraction is immediately qualified for that purpose", It is necessary to present the project in the respective municipality, have the project approved, to proceed with the "necessary works for this purpose, in order to obtain the respective license of use".
"Otherwise, there would be a risk of turning fractions with an absolutely different purpose (for example, storage, warehouse, garage, etc.), into dwellings without minimum and dignified conditions for this purpose", can also be read in Idealista.
The association's statement also states that, although authorization is not required, the change must be communicated to the condominium owners, through the administrations, as the condominium assembly must pronounce whenever the change in question requires works in the common areas. This is because it can interfere with the aesthetic and architectural line of the building.
Also in the diploma, it is stipulated that the PUBLIC DEED, or the private document that determines the alteration of the constitutive title of the fraction, must be communicated to the administrator within a maximum period of 10 days.
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