Buying an Off-grid Property in Central Portugal - TIPS!
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- čas přidán 19. 03. 2023
- It's been a few months since we left Portugal and the time has finally come for us to return! In this video we'll give you a brief update on what has happened on the land since and we'll go through our experience of buying our land. If you're interested in buying a property of your own then you don't want to miss this one!
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There's a lot of misunderstanding about the 1951 EXEMPTION from having an habitation license. Here's some points:
1. The habitation license is a document that started being required for all HABITATION buildings built after 1951 to present date, it is issued by the Camara Municipal of each area, and it states that the building was built to be a habitation according to all the requirements at the date of construction.
2. All buildings built for habitation BEFORE 1951 were exempt of having an habitation licence, that exemption still applies today if these buildings are in their original shape, not renovated, and that's why those habitations can be sold without an habitation licence today.
3. This exemption to have an habitation license ONLY APPLIES to HABITATIONS. It does not apply to farm support buildings, such as barns, sheds, animal sheds, shepperds huts, etc with roof or without, even if people lived in such places.
For instance, sometimes very poor folks came to work for a farmer and may have lived in those stone barns a long time ago, but it does not make them into habitations. Same for shepperds living in stone barns etc.
4. What matters is if the land where the old stone barn stands is registered as URBAN, which means that a habitation can be made in that urban plot, either by renovating the building already there or by demolishing and building new, subject to the required approval of the project, of course.
If the plot of land is registered as RUSTIC you cannot build anything, unless the status of the plot is changed from rustic to urban. EASY if the plot is in or near a village, very DIFFICULT if it's in the middle of nowhere, IMPOSSIBLE if it's in the middle of forest because of the high risk of forest fires.
5. The habitation license must be upgraded each time there are major renovations done to the house. If you buy an habitation (please note the word HABITATION, not barn or farm support building) that was built before 1951, it should be exempt from an habitation license if it is still in its original shape. You can buy it without an habitation license, and if you don't do anything to it, you can sell it again without an habitation license.
BUT... if you renovate it you'll need to upgrade its status and get an habitation license. You won't be able to sell or rent a renovated building without an habitation license.
The exemption is NOT forever... only till the house is renovated and the documents updated.
If you are going to buy a renovated building it should have an habitation license. If it doesn't, don't buy it without one.
6. The 1951 exemption does not apply to any other buildings that were not habitations when they were built.
Estate agents often say stone barns are exempt from an habitation license because they were built before 1951, they are (almost) telling the truth because... stone barns don't need a license or any document to be a barn, but they are not and never were an HABITATION. You can't make a home / habitation in a stone barn. The exemption is not for stone barns & agricultural support buildings. A barn is a barn. Different from an habitation.
It's like saying: I found a bridge built before 1951 and therefore I can make a home under it without an habitation license. Bonkers?
Hope this helps to understand what is an exemption from habitation license.
Thanks for sharing Donna, my understanding was very similar to that which is why I stressed in the video that people need to check as best as they can if they can do what they want with a plot they are thinking of buying, if they want to do it legally anyway.
Just to make very clear on the statement "seek legal advice if you can" I would like to rephrase that for anyone saying that into 'Seek legal advice, always'. One simple must do that. No matter if you do things with or without an estate agent. Estate agents lie(sell). Thats all they need and want to do usually. They can say something has a habitation license but if it doesnt and you purchased it then well you cant live there and need to find a... Real estate agent to sell. (Altough you did explain things why and how later on) 😀 So this is basically a reiteration
p.s. You gave awesome advice
excellent video with some interesting advice... I get a feeling quite a few aren't reaaaaaally following the rules as they should
I think there are some people who rely on "getting away with it" rather than doing things by the book 😉 Don't get me wrong, sometimes it's fine to bend the rules, but the more you bend them the more risk you expose yourself to. Some people are comfortable with the risk, some are not.
This is my favorite channel that I like to watch on TV.
Thanks for your comment and we're glad that you're enjoying the videos!
To find out the status of any property, plot of land or building, before you make an offer, get a copy of the Caderneta Predial of that property from the seller or agent, take it to the local Camara Municipal and ask them what you CAN DO and CAN'T DO with that property. Ask if the property is registered as rustic or urban. Can you renovate an exisitng old building for habitation? Build new? How many square meters can you build?
The local Camara has the answer to all your questions.
The Caderneta Predial is like the ID document of a property, all properties have a Caderneta. It shows the property registration number, the status such as rustic or urban land, or mixed, the owner(s) name, the boundaries, total area.
Agents cannot offer a property for sale without having received the Caderneta, so don't be fooled if they say they don't have the Caderneta. If they don't give you a copy of the Caderneta it may be because they are trying to hide something, they don't want you to find out there are problems. It happens a lot.
The seller(s) can print as many copies of the Caderneta Predial as they wish from their online tax account, all free.
If you want a written reply from the Camara Municipal, you can fill a PIP request form (Pedido de Informaçao Prévia) and it'll cost you around 30 Euros. But if they are not very busy at the Camara, they'll give you all the information there and then free of charge.
Just get a copy of that Caderneta. Any decent agent & seller will give you copies of all the documents speedily.
Very useful info Donna, thanks for sharing! 👍
Well done and welll said. make sure that you have a layer on your side. (let me guess, you used Liliana)
Hey! Thanks for your comment. Doesn't everyone? 😉👌
@@DJAAdventures I guess so :) i will come to you for a cup in september.
It seems odd that the purchaser is involved with paying the estate agent anything. In the UK it's the vendor that pays the agent to market their property. It's obviously built into their asking price - but it's weird (to me) that a purchaser would be paying fees directly to an estate agent. Interesting video.
The estate agent acts as a middle man in a way and although the buyer does in effect pay the fees direcrly to them as part of the initial deposit, it is included within the agreed price. It's done slightly differently in Portugal but in regards to the estate agent fees and where the money comes from it's not actually all that different in that regard, in Portugal they are just more focused on making sure they get paid regardless of the outcome I suppose whereas in the UK the solicitor would sort that out for you at the very end. It was a very efficient and simple buying process compared to the UK though, almost makes you worried sometimes but it worked well for us.
Agree
@@DJAAdventures This sounds totally WRONG & ILLEGALto me.
In Portugal estate agents earn their fees from the sellers, never from the buyers.
When a seller puts their property for sale through an agent, they'll agree if they are going to be the sole agents, or if the buyer will instruct other agents as well. This will determine what kind of fees the seller will pay the agent, if there are more than one agent acting for the seller, the fee may be higher. Seller and agent(s) will then sign a contract between them stating T&Cs and the fees.
The buyer pays the price agreed / accepted to the seller at the notary during the signing of deeds of the property and the seller then pays the agent whatever they've agree in their contact. The buyer does not pay anything to the agent. NEVER.
Hi Donna, I can only describe what the process looked like for us. We did only pay the agreed price so I don't feel we have lost out in any way but I appreciate that it may work differently with other estate agents 👍
@@DJAAdventures It all sounds very dodgy to me. Why pay an agent if they are not the legal owners? Tax evasion comes to mind, and if that was proved to be the real reason you could be found guilty as well as them (seller & agents) according to portuguese law. Anyone reading this, be careful, do everything the correct way
Usually the seller pays to the states agents.
Hi Tina, I think in essence the seller pays the estate agent as it comes from the agreed sale price, it's just that the initial deposit went from us to the estate agents rather than directly to the seller for various reasons. 👍
@@DJAAdventures Thanks 😊
@@DJAAdventures What reasons? Tax dodging one of them?
Is there any different when buyer is EU citisen or non-EU? Are you aware of this different?
It doesn't matter when it comes to buying property, I think the application for NIF is a bit more tricky for non-EU citizens but as our solicitor sorted that out for us it wasn't an issue. Getting a visa or the right to live in Portugal though is a different story.
@@DJAAdventures great thanks David👍
The NIF is dead easy. Walk into finances and ask for one.
Hi Matt, yes I've heard it's easy, in our case due to time constraints it just wasn't practical. If someone has the time thoigh it makes sense to at least try yourself 👍
Hi , thanks alot for this helpful information...🙏
Is it possible for you to give me your solicitors contact details? 🌻
Hi Karen, I'm reluctant to put them on here, but if you message us on Facebook or Instagram through our page then I can share the details that way 👍
Stunning. Crush your competition with smzeus.