According to the newly published law, the life of condominiums and real estate transactions will alter in April. All property sales must now include a declaration from the owner disclosing condominium information, similar to how the energy certificate is now required.
Condo associations now have new operating guidelines, as well as increased authorities and responsibilities for administrators. The new diploma also discusses how horizontal property is created.
"Legislation No. 8/2022 which was released on the 10th of January 2022, a law that dramatically affects the legal Portuguese system on major topics, such as the functioning of condominium assemblies, the responsibilities and obligations of the condominium administrator, and the constitution of horizontal property."
The new law also inform that, "the obligation of the owner of a fractional property to submit, at the time of its sale, a written declaration issued by the condominium administrator containing the amount of all condominium charges in force at the date of sale and any debts owned by it is also introduced".
The statement of the condominium with the fraction charges at the time of sale:
As of the 10th of April 2022, an autonomous fraction owner who wishes to sell, donate, or otherwise dispose of his or her fraction must request in writing from the condominium administrator a written declaration containing the amount of all condominium charges in effect in relation to his or her fraction, specifying:
• its nature
• their amounts
• payment terms
The current debts linked to the autonomous part to be disposed of must also be included in the same statement, if any, specifying:
• its nature
• amounts
• constitution and expiration dates
The condominium administrator must produce this declaration within 10 days after the fraction owner's request, and its presentation is required for the drafting of the documents by which they are shared or transmit rights over buildings (such as the right to property), or if they are charged on them.
Only if the autonomous fraction purchaser expressly says in the deed or certified private document titling the disposal of the fraction that it does not waive such declaration can such a document be waived. However, by allowing the deeds to be carried out without the condominium administrator's consent, the autonomous fraction purchaser must accept responsibility for any debt owed to the condominium by the seller.
Expenditure necessary for the conservation of the common parts:
The new condominium law also aims to resolve various difficulties with condominium-related spending liability.
It is therefore expressly provided that, unless otherwise provided, the costs necessary for the conservation and enjoyment of the common parts of the building, as well as the payment of services of common interest, are the responsibility of the owners of the fractions at the time of their deliberations, and are paid in proportion to the value of their fractions.
It is also determined that the costs relating to the payment of common interest services may be borne by the owners in equal parts or in proportion to their enjoyment (by provision of the condominium regulation, when approved without opposition by a majority of the owners representing the majority of the total value of the building), provided that the criteria determining their imputation are duly specified and justified.
Another significant shift is the cost of maintaining the shared areas that are impacted by the condomino's exclusive use (such as balconies and patios for exclusive use). If the state of conservation of these areas has an impact on the state of conservation or use of the other common parts of the building, the condomino in favor of those who have exclusive use of those areas only bears the value of the respective repair costs in proportion to the value of their fraction, unless such need is in fact attributable to him. (i.e., the condominium is responsible for covering the costs of repairing and conserving patios and balconies that are for the exclusive use of one of the owners, except where such costs are the result of condomino conduct – for example, unauthorized works, as Cristiano Ronaldo and Joe Berardo did in their luxury apartments in Lisbon – which has the exclusive use of these areas.)
Liability for condominium charges:
One of the most significant changes brought about by Law No. 8/2022 in Portuguese law is the obligation for debts owed to the condominium and how this duty is handled when the autonomous parts are sold. With the revision, it is hoped that an issue that has been debated in Portuguese courts for a long time would be resolved.
As a result, the law aims to clarify this issue, stating that the condominium's duty for debts should be determined based on when the debt should have been settled. As a result, only if the autonomous fraction purchaser expressly declares in the deed or in the certified private document that it titles the disposition of the fraction, which does not preclude the administrator's statement referred to above, will it be liable for any debt due prior to the acquisition date.
Finally, it is specifically stated that the new owner is responsible for all amounts that comprise condominium charges, whatever of their nature, that are due at a date after the transfer of the fraction.
Changes to the constitutive title of the horizontal property:
Until now, the law required that the constitutive title of horizontal property be changed only with the consent of all condominiums. However, the new law stipulates that whenever:
(a) the condominos' representative votes opposing the amendment to the constitutive title of horizontal ownership amount to less than 1/10 of the capital invested; and
(b) the amendment does not change the conditions of use, relative value, or purpose for which its fractions are intended, the condominos' lack of agreement may be challenged in court.