New rules when selling apartments/townhouses

Update

A revision to the existing law which relates to horizontal property (i.e. buildings with multiple separate parts, that can be apartments, townhouses or commercial spaces) was published on the 10th January 2022. (Lei n.º 8/2022).

Parts of this law relate to the procedures that must be followed when selling a property (known as a fraction or fracção) in a building that has multiple parts (such as a condominium with mutiple apartments).

When selling a property, the vendor is obliged to inform the administrator of the condominium of the sale. This notification should be sent by registered post, and with a minimum of 15 days notice. The notification must include the fiscal number of the new owner, and their complete name.

If this notification is not sent, then there are penalties for the vendor. If, when the administrator of the condominium has to identify the new owners, he incurs costs then these are to be paid by the previous owner. Any expenses related to late payment of charges are also the responsibilty of the previous owner.

There is also the provision for a document to be produced by the administrator of the condominium when a fraction is being sold. The vendor should make a request to the condomimium at least 10 days before the sale for this to be issued. The declaration will include details of the condominium running costs and also any debts outstanding, in relation to the property being sold. This document will form part of the escritura (deed of sale). However, the purchaser can elect to not request this document, but if he does so then he will be held responsible for any debts that the vendor has to the condominium.

Conclusion

When purchasing a property that is within a condominium, it is good practice to ask for the declaration from the administrator. This not only confirms that there are no debts, but also gives useful information in relation to the running costs.

When selling a property in a condominium, you should ensure that you notify the administrator of the purchasers details, as failure to do so could incur costs and penalties.

You can view the law in detail here: lei 8-2022