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All you need to know about the new law on Local accommodation

16 August, 2018 Legislation
Approved on 17th July Parliament, the new law of Local (AL) may start to create problems for economic operators of real estate in the coming months. The measure only enters into force after 60 days of its publication in Gazette, but this should happen over the next few weeks.
 
After that, all new registrations must adapt to the new law, under heavy fines. Existing records will have a period of two years to adapt to changes.
 
 
Here is a guide of the biggest changes in the law:
 
 
How is legalization of local accommodation done ?
For authorisation a registration is required prior to communication. This is addressed to the Mayor of the municipality in which the accommodation is situated and submited in teh Balcão Unico of the council.
 
 
Which documentation is necessary to carry out the registration?
The prior communication is accompanied by several documents relating to the property, such as its license to use. Documentation is also required for the person who will explore the place (identification, title to be able to explore and contact for emergencies) and the modality of the place - apartment, housing, lodging and hostel. In the case of hostel, the minutes of the assembly of condominium owners are necessary.
 

How is AL authorized?
Legalization of accommodation is by default. If, within 20 days for hostels and 10 days for the rest, there is no interference by the camera, the AL is considered authorized and may open to the public.

However, the local authority may inspect the property within 30 days to verify the legal requirements and the registration may be canceled in case of any compliance. 

How will the Councils limit the new records of AL?
The new law provides that municipalities can create "containment areas", which impose "percentage limits in proportion of real estate available for housing". These areas may be by parish or by neighborhood/districts and will be re-evaluated at least every two years.
 
In addition, in future containment areas, the same owner may only hold seven units of local accommodation in the same area. New registrations of local accommodation can only proceed with the same prior communication with term. 
 
Owners who already own seven units as of the date of entry into force of the law, may retain all units, but the possibility of opening new ones will be barred.

 
 
Is it allowed to sell a property already with registration?
The license of AL is personal and non-transferable and, for that reason, if any transfer of ownership occurs, the registration is expired - either it is holder by a person or a company. This rule will only apply to apartments and villas, not covering the hosting/lodging establishments. Expiry will not occur only in case of death succession.
 
How can "AL" owners protect themselves from any damages?

Holders of local accommodation will be required to hold multi-risk third-party liability insurance. This will protect you from your assets and cover you for fire risk and property damage and non-property damage to guests and third parties. The absence of valid insurance may lead to cancellation of registration.

 

What benefits can condominiums earn with the law?
With the measure, the assemblies of condominiums may submit requests for closure of the local housing units in the corresponding municipal councils. For this, it will be necessary to gather the agreement of more than half of the occupants of the building with associated reasoning.
 
Among the reasons for the closure of the units may be "repeated and proven practice of acts that disturb the normal use of the building, [...] which cause discomfort and affect the rest of the condominium owners." It will then be the autarchy to decide the cancellation of the AL and, if granted, there can be no on-site registration for a period of six months, regardless of the holder of the holding.

What other obligations do the AL explorers have over the condominium owners?
The first major change is that a hostel can only exist with the express permission of the condominium owners. In addition, the owner of the farm must provide his telephone contact to the condominium and, if it is necessary to renew the common parts of the condominium for the licensing of the LA, it is the owner of the farm that was to bear its cost.
 
In addition, the condominiums may also fix the payment of an additional contribution corresponding to the expenses arising from the use of the common parts, with a limit of 30% of the value of the respective annual quotas.
 
What obligations will guests have in local accommodation?
For personnel staying in AL properties, there will necessarily be an information book about its operation and certain specifications. These include the collection and selection of waste, the operation of household appliances and the care to be taken to avoid disturbances in the building and the neighbors. The telephone number of the owner of the local accommodation must also be provided.
 
In the case of horizontally owned buildings, the same book should also include the rules of condominium. The manual should be written in Portuguese, English and at least two other foreign languages.
 
How can I identify if a property is allocated to the AL?
The local accommodation will have marked their destination near the entrance of the establishments through an identification plate. The rule applies to everyone, except for housing and including the provision of rooms.
 

Source: online News paper Sabado

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