Published on 30 July, Presidential Decree No. 147/25 of 30 July establishes the legal framework and procedure applicable to the disposal and legal regularization of residential properties that were confiscated, built, or acquired by the State up to the year 2008. The decree aims to address the need to provide legal certainty to the occupants of such properties and to promote the effective ownership of property rights.
Main innovations introduced by the new regulation:
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The disposal of residential properties is now permitted in cases where such properties were confiscated, built, or acquired by the State up to 2008, regardless of the existence of prior formal allocation acts in favor of the occupant.
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Properties intended for commercial, industrial, or professional purposes, as well as vinculated properties—those legally or regulatorily assigned to a specific and non-transferable purpose—are excluded from this regime.
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The disposal process may be initiated either at the request of the occupant or by the competent public authority, upon verification of the effective and continuous possession of the property.
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The valuation of the properties will be carried out based on objective criteria defined in the annex to the decree, taking into account, among other factors, location, condition, age, and the availability of infrastructure and basic services.
Payment modalities:
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Full payment, benefiting from a 25% discount on the total value;
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Payment by installments, through a monthly plan of up to twenty-four (24) months, subject to penalty clauses in case of default—namely, the loss of the right to pay in installments and the requirement of immediate payment of the remaining balance.
Upon settlement, the purchaser will receive the necessary documents to complete the property registration, including the Settlement Certificate, the Property Register, and, when applicable, the Purchase and Sale Agreement.
The State is responsible for submitting the registration to the competent land registry office, and the notarial and registration fees associated with the process will benefit from a 70% reduction compared to the general regime.
The decree entered into force on the date of its publication in the Official Gazette, applying nationwide and binding on all public services and entities involved.
The content of this newsletter is general and abstract in nature and does not replace legal advice specific to individual cases. FBL Advogados is pleased to assist any interested parties regarding the terms and provisions of the presidential decree discussed herein, and its team is available to provide specialized technical support, offering relevant solutions and recommendations.
For more information, please contact: Marcos Silva and Neuza Melão Dias | marcos.silva@fbladvogados.com | neuza.melaodias@fbladvogados.com
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