Thursday, 26 May 2022

The new rules applicable to the purchasing of properties in the real estate market - the declaration of the condominium

VolverSince April 10, 2022, because of Law 8/2022, the owner of property in a condominium (an apartment, for example) that wishes to sell, donate, or, in any other way, give away its property, has to request the condominium administrator to issue a written declaration in which the total amount of all condominium expenses and debts concerning its property is declared, stating:

• its nature

• their respective amounts

• payment terms

The same declaration shall also mention any existing debts related to the property that will be sold, also stating:

• their nature

• their respective amounts

• the dates of such debts and when they are supposed to be paid

This declaration must be issued by the condominium administrator within a maximum of 10 days from the request of the owner of the property, and its presentation is mandatory for the drafting of the instruments by which the rights are shared or transmitted over buildings (such as the right to property). Such declaration is mandatory unless the buyer expressly declares in the deed that he waives such declaration. However, by accepting that the deed is conducted without the declaration of the condominium administrator, the buyer agrees that he will be responsible for any debts that the seller may have concerning the condominium.

Necessary expenses related to the conservation of the common parts

The new law also aims to put an end to some discussions related to the liability of condominium-related expenses.

From now on, the costs related to the conservation of the common parts of the building and the payment of services of common interest will be the sole responsibility of the owner of the property at the time such expanses were decided, which are due in proportion to the value of the co-owner’s property - unless otherwise decided.

Also, the costs of services related to the condominium may be paid by the co-owners in equal parts or in proportion to their use, provided that the criteria used is duly specified and justified.

Another important change concerns the cost of the common parts that are exclusively used by a sole co-owner (such as balconies and patios for exclusive use). When the conservation and maintenance of these areas affects the state of conservation of other common parts of the building, the co-owner who has the exclusive use of those areas is just as responsible as the other co-owners, unless he is responsible for any damages that justify such repair works.

Liability for condominium charges

One of the main changes in the Portuguese legal system introduced by Law 8/2022 concerns the liability for debts to the condominium and the way this liability follows the property. This issue has been discussed in the Portuguese courts for several years and the new law aims to solve this problem.

As so, in any debts to the condominium, the moment when the payment is due is now the key moment to determine who is responsible for the payment - if it is the previous owner or the one who purchased the property. Consequently, only if the buyer expressly accepts to do the deed waiving the statement of the administrator referred above, will he be liable for any debt due on a date before the date of the acquisition.

The Real Estate Department of Belzuz Abogados is currently monitoring the implementation of the new law, being entirely available for any clarification or advice on this topic.

Real Estate Law department | Portugal

 

Belzuz Abogados SLP

This publication contains general information not constitute a professional opinion or legal advice. © Belzuz SLP, all rights are reserved. Exploitation, reproduction, distribution, public communication and transformation all or part of this work, without written permission is prohibited Belzuz, SLP.

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