Want to change a store to residential use? You can now, but know the rules.

What is the change to the legal regime of horizontal property ownership?

The amendment to the legal regime of horizontal property, which now allows a property to change its purpose to residential use without the need for the condominium's authorization, came into effect on January 8th. However, there are certain rules and deadlines that must be followed regarding this change.

The Portuguese Association of Condominium Management Companies warns about a published decree-law that allows changing the intended use of a fraction for residential purposes without prior authorization from the condominium.

The diploma states "The change of the purpose or use of each fraction for housing does not require authorization from the remaining co-owners."  

But what is the purpose of the measure? It aims to increase the housing supply, to simplify the amendment of the constitutive title of fractions that previously had another purpose, such as a retail store.

Understand the rules and deadlines established, however, in view of this measure already in force.  

What are the rules to follow in the measure in question?

According to APEGAC, cited by Idealista, "the fact that condominium owners no longer have to authorize the change in the purpose of the fraction, when it is for housing, does not mean that the fraction is immediately enabled for that purpose", and it is necessary to submit the project to the respective municipality, have the project approved, in order to proceed with "the necessary works to obtain the respective user license".

"Otherwise there would be a risk of turning fractions with completely different purposes (for example storage rooms, warehouse, garage, etc.) into housing without minimum and dignified conditions for this purpose," as stated on Idealista website.

The association's statement also mentions that, although authorization is not required, the change must be communicated to the co-owners through the administrations, as the assembly of co-owners must always express their opinion whenever the change requires works in the common areas. This is because it may impact the aesthetic and architectural line of the building.

The diploma still stipulates that the public deed or private document that determines the amendment of the constitutive title of the fraction must be communicated to the administrator within a maximum period of 10 days.

If you are thinking of converting a store into housing, evaluate the costs of the works and the advantages of this investment well. You can even resort to housing credit for works, and in that case, count on the support of Poupança no Minuto. Our intermediaries help you compare proposals, understand the impact on your budget and ensure the best conditions, for free, personalized and without complications.

Transforming a property can be the beginning of a new chapter. Do it with specialized support and with someone who speaks your language: saving at the right time.