Buying a house in a tourist resort
If you decide to buy an apartment or house inside a tourist resort, you should know that there are some particularities involved in the process for purchasing the property and its subsequent use.
What are the advantages of purchasing a property in a tourist resort?
You can enjoy a range of hotel and other services, specifically maintenance and conservation of the property and common areas, allowing you to enjoy the property in a more relaxed and pleasant way.
What are tourist resorts?
They are establishments aimed at providing a paid accommodation service. They are giving a classification (stars), corresponding to a certain set of structures, equipment and services.
Tourist resorts may be made up of independent fractions or plots, which may be owned by several people. These independent fractions or plots at go by the name of “accommodation units”, which, depending on the type of tourist resort, can be rooms, suites, apartments or houses.
What types of tourist resorts can fractions or plots be purchased in?
Any developments offering apartment or house type “accommodation units”.
If you intend to purchase an apartment or house located in a tourist resort, you should confirm the following before doing so:
– the existence of validity of licences for the construction and operation of the tourist resort. This service is provided by the City Council (Câmara Municipal) where the development is located;
– the existence of an approved constitutive deed (título constitutivo), registered at a Land Registry Office and with Turismo de Portugal I.P.
What is a constitutive deed (título constitutivo)?
It is a document regulating the administration of a tourist resort, if the development is owned by various property owners. Among other aspects, this document defines the rights and duties of the property owners and common expenses, so that these expenses can be shared and the administration of the development can be regulated. This document must obligatorily be approved before any promissory purchase agreement or final sales agreement for independent fractions of a tourist resort can be entered into.
You must be in possession of the following elements before signing a promissory purchase agreement or final transfer agreement for a fraction or plot in a tourist resort. Contracts are considered null and void if these elements do not exist:
a copy of the approved and registered constitutive deed;
a copy of the contract that gives the entity operating the tourist resort approval to commercialise the accommodation unit in question;
an indication of the value of the scheduled instalment payable by the owner of the fraction or plot in the first year.