ABC of Real Estate

A license that qualifies a construction company to execute work within certain limits, both technical and financial.

Flat is the designation for an independent fraction of a building, destined for private habitation, whereby several families reside in the same building.

A lawsuit in which the landlord asks the court to cancel the contractual relationship with the tenant and force him to vacate the rental property.

Real estate is related to the buying, selling, renting, and the like of real estate and is carried out by independent professionals working for real estate companies.

It is the total surface area of the building or fraction and represents the sum of the gross areas of all the floors of a building, above and below ground, and is measured considering the outside of the walls that delimit or separate the dwellings.

The gross construction area corresponds to the sum of the gross private area and the gross dependent area.

This concerns the covered and closed areas for exclusive use, not integrated in the calculation of the gross private area (garage, storage room, annexes, attic, etc.)

Corresponds to the total surface, measured by the external perimeter and the axes of the walls or other separating elements of the building or fraction.

In 2017 the additional municipal property tax was created, which is also levied on the Taxable Asset Value (VPT), but only when it exceeds a certain amount.

The valuation of a property is a process usually sought in a transaction of a flat, villa, land or shop, for the purpose of sale, lease or for a mortgage.

The National rental counter, is intended to respond to landlords who decide to use the Special Eviction Procedure in order to evict tenants and revoke the current rental contract.

Document issued by the Land Registry Office that certifies all the records made in relation to the property: the description, the lawful owner, the location, the composition, and the existence of liens or encumbrances on the property (such as registered liens, mortgages, and usufructs).

The toponymy certificate consists of a document issued and authenticated by the municipal services, which certifies the toponymy, numbering of the building/s and/or the parish of the property in question.

The caderneta predial is an indispensable document for buying or selling your house, and not only that. It has an importance similar to that of your citizen's card: without it you cannot carry out certain legal procedures.

The permanent certificate of commercial registration is access over the Internet, in real time and at any time, to all computerized records, to all electronic documents associated with the entity's electronic file or with the last updated memorandum and articles of association, of an entity registered in the commercial registry office, depending on the type of certificate subscribed to.

The use coefficient or use index indicates the relationship between the construction area and the total area of the plot of land on which the property is located

This document aims to inform the potential buyer of the property about the overall energy performance of the building, improvement measures that increase energy efficiency, comfort, and possible reduction of energy consumption.

This designation is usually used to classify a dwelling that is distributed over two floors, with an interior staircase connecting the two floors.

In the case of a contract related to housing credit, the distrain is a document issued by the bank that proves the extinction of the debt and the rescission of the associated mortgage.

The orientation and solar exposure, when buying a house, is one of the most important factors to consider for the sake of your comfort and the appreciation of your investment.

The European Standardized Information Sheet is a mandatory document, issued by the Bank of Portugal, which banks must provide to those taking out a loan, namely a mortgage, where information is provided on the main characteristics of the loan.

The housing data sheet is a document with the description of the technical and functional characteristics of an urban building for residential purposes, which has recently been replaced by the construction book.

The Golden Visa is technically called Residence for Investment Activity and is a regime which allows foreign citizens to obtain a temporary residence permit for investment activity.

A mortgage is a real guarantee that assures the creditor (usually a bank) that if the debtor defaults on the full payment of the loan, the former can be reimbursed for the amount owed.

Inheritance is the right or condition of inheriting, gaining, obtaining or conquering something by way of succession; that is, transmitted from someone to someone.

Municipal Property Transfer Tax and applies to real estate transfers, located within the Portuguese territory.

Municipal Property Tax is a municipal tax levied on the Patrimonial Taxable Value of all properties located in the national territory and which payment is annual.

A topographic survey consists of mapping the surface of a terrain by means of measurements carried out by a topographer, in order to draw up a topographic plan showing the variations in relief and other geographical features.

This document defines the type of use permitted for a given building or fraction: dwelling or non-residential use (commerce, services, industry, liberal professions, parking or warehouse).

Real estate leasing is a financing solution for the purchase and/or construction of real estate, which allows the client to use a property for a determined period of time, against the payment of a rent to the owner.

It is a document that certifies that the dwelling has been inspected and respects the legislation in force in order to be inhabited.

The activity of Real Estate Mediation is the one where, by contract, a company undertakes to diligence in order to obtain interested parties in the realisation of business that aims at the constitution or acquisition of real rights over real estate, the exchange, the transfer or lease of the same or the cession of position in contracts whose object is real estate.

For tax purposes capital gains on property are considered income and are therefore subject to VAT. This income results from the non-gratuitous transfer of real estate and, therefore, falls under a specific category.

This is a common designation for a detached house, with or without a garden, and it is also common to use the word villa instead of dwelling.

The New Urban Lease Regime is a set of laws which aim to provide answers to problems related to urban leases: contracts with rents prior to 1990, rehabilitation works in leased properties, eviction proceedings, etc.

A barter in real estate, occurs when two owners enter into a contractual agreement to exchange one piece of real estate for another, of equal or different value.

In general, common parts are considered to be those parts of a building which are not for the exclusive use of one of the condominiums: floors, foundations, roofs, entrances, stairs, patios and gardens, lifts, garages, etc.

A building is in horizontal property when it is divided into autonomous fractions (independent units), namely apartments or floors and garages.

The implantation polygon is the closed polygonal line that delimits an area of land within which it is possible to build.

If you intend to buy a property, you will have to pay the Municipal Tax on the onerous transfer of real estate, at the Tax and Customs Authority. Use this simulator to calculate the amount payable.

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The Revised Effective Annual Rate corresponds to the interest rate TAE, plus the costs of associated financial products, to allow for the reduction of the spread rate.

The effort rate is an indicator that measures the weight of financial expenses in the household's total income and is used in risk analysis.

The Effective Annual Rate is the annual cost of the bank loan, depending on the amount owed, including expenses and commissions.

The Nominal Annual Rate is the annual interest rate that serves as a reference for home loans.

The constituted title of the horizontal property is the notarial deed that instituted the building in horizontal property, that is, that divided it into autonomous fractions as independent units and common parts.

The typology of a dwelling serves to designate the number of rooms in a house, as well as the structure and division of the areas.

By usucaption we mean a right of possession over a movable or immovable good, as a result of having used it for a given period of time, continuously, as if you were the real owner of that good.

The Tributary Patrimonial Value is the value attributed to buildings for habitation, commerce, industry and services, on which the tax - Municipal Property Tax - is levied.