# Property usage rights



## Pintor (Feb 1, 2011)

Hi

I'm new to this forum but I wonder if you can help...

I'm thinking of buying an 2 bed apartment on a small development in the algarve however it's not straight forward. Here's what the agent has told me...

Officially it is currently 2 separate properties registered as follows:

T0 – (Ground floor from street level) Studio apartment which comprises a hall, kitchen, bathroom, sitting room and terrace.

Basement – (Ground floor on the garden and pool level) 49 m2 for storage.

However when the current vendor bought the apartment the 2 floors were converted to one large 2 bed apartment.

Even though it is still converted I will be purchasing 2 properties - I'm told the interior alterations were made without a building license from the Town Hall, and as no exterior alterations were made this apparently falls within the law. 

I am also told the basement can only be licensed for storage and can’t be changed. How does that affect me using it to live in? I spoke to a lawyer today who said it is ok to live in and it is possible to change the usage to habitation but not straight forward. I guess changing it to habitation would then increase the number of properties on the development and affect service rates etc???

I hope this makes sense and someone may be able to point me in the right direction.

Thanks!


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## siobhanwf (Mar 20, 2009)

I think if it was me I would steer clear!


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## robc (Jul 17, 2008)

I assume that the price being asked for the property is commensurate with all the available space being categorised as living space and not as combined living space plus storage space. 
This could have a significant impact on the value of the 2 properties. 
Scrolling forward, say you purchased the 2 properties and subsequently found that the current arrangement contravened planning rules of some kind and you were forced to return the spaces back to their design usages, or to sell you may end up with a whacking loss.

If the basement is for storage only and will only ever be storage then you do, I think have your answer.

Priced as a T0 with 49m2 of storage then you may consider it worthwhile. Any other scenario and I know I would walk away.

The old adage " If it is too good to be true.................." springs to mind.

Rob


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## Catx (Apr 15, 2009)

robc said:


> I assume that the price being asked for the property is commensurate with all the available space being categorised as living space and not as combined living space plus storage space. ........
> 
> If the basement is for storage only and will only ever be storage then you do, I think have your answer.
> 
> ...


I am totally with Rob on this - if the plans says that it is a TO and a cave/
basement, then that is what it is and always will be. Talk to a solicitor before putting in an offer. The agent wants a sale, the solicitor will be acting for you.

I have walked away from many properties which had been modified without the plans being amended. If I were in your shoes, I would walk away from this.

I hope you find something else suitable that you will be able to sell on later if the urge or need ever arises.


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## kevankevan2005 (Feb 2, 2011)

*walk away too many complications*



Pintor said:


> Hi
> 
> My advise is walk away!Portugal paperwork and its legal system as far as i know is arduous and expensive.There are plenty of other dwellings to be had at knockdown prices,widen your search .


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## loonytoon (Feb 11, 2009)

kevankevan2005 said:


> Pintor said:
> 
> 
> > Hi
> ...


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## kevankevan2005 (Feb 2, 2011)

loonytoon said:


> kevankevan2005 said:
> 
> 
> > the house we are buying in the Algarve was converted from 2 ruins 16 years ago but the paperwork was never done to reflect this. The owner started the paperwork process to rectify this in Sept 2009 and it is still ongoing. has cost her at least E3000 so far (mainly in architect fees for plans etc). stay away from it
> ...


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## loonytoon (Feb 11, 2009)

kevankevan2005 said:


> loonytoon said:
> 
> 
> > If its your dream Jeff than i see where you are coming from.i just think it is looking full of complications,but if the owner is dealing with the legals etc,than sit back and wait,but fine toothcomb all documentation with a good lawyer.Good luck.
> ...


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## siobhanwf (Mar 20, 2009)

One other point is don't choose a solicitor recommended by the agent!


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## mayotom (Nov 8, 2008)

I have to say stay clear of it, have you checked it out at your local Camera, if there are two properties that means two tax payments, which in the long run is expensive, but can work to your advantage in the property transfer tax depending on the value.

however if you say that the current owners are working on it leave them to it, as you say you can use it for free, so yes the best of both worlds, but be aware the process can take a long time maybe even years.

thread very carefully


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