Buying a house in a tourist resort
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:
Other rules that you should be aware of:
What is the scheduled instalment payment and what is it used for?
It is a valuable consideration paid to the operating entity by the property owners of the development to cover the development's maintenance, conservation and operating expenses, under the terms set out in the constitutive deed (título constitutivo). Property owners may enjoy the services that are obligatory as a result of the development's category, the expenses of which are covered by the scheduled instalment payment.
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THIS INFORMATION IS NOT INTENDED TO BE A SUBSTITUTE FOR CONSULTING THE APPLICABLE LEGISLATION |
Source: Turismo de Portugal |

Related Links
- Buying a House in a Tourist Resort: www.portugalresidential.com