Legal analysis
Key of any real estate investment
There are dozens of details to consider when acquiring a piece of land. The legal analysis of a piece of land brings several advantages for those involved in the real estate transaction, contributing to the security, transparency, and
appreciation of the property.
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Before purchasing a piece of land, a detailed legal analysis should be conducted to determine its construction viability, taking into account the investment purpose (residential, with one or more houses; commercial - tourism projects, real estate promotion, restoration, among others). Depending on the characteristics of the land, even if it is intended for construction, there will be several constraints that need to be analyzed to verify the feasibility of the project. Some of these constraints may be overcome, but they may require significant financial investments
Elements to consider for legal analysis
1. Documents
The seller must provide the property's legal documents, which must be in order. The "Caderneta Predial" and "Certidão (Permanente) do Registo Permanente" must be provided for any property.
In the case of the land being a "Loteamento", the "Planta Síntese do Loteamento" and the "Regulamento do Alvará do Loteamento" must also be provided.
For lands located in “AUGI (Área Urbana de Génese Ilegal)," areas, special attention should be paid to the analysis of documents and the Municipal Council should also be contacted to understand the status of the land legalization process and the constraints inherent to the process.
Any land that has or had a process ongoing at the Municipality regarding a license request, Right to Information, “Pedido de Informação Prévia” (PIP), etc., should be analyzed to obtain knowledge of it.
3. Urban and Rustic Land
Usually, urban land is for construction and rustic land is not. However, this does not mean that it is impossible to build on rustic land, as there are several exceptions depending on the Municipal Master Plan (PDM) of each municipality, which should be carefully analyzed.
If a property record shows that the land is classified as rustic, it does not necessarily mean that it is impossible to build on it, as this classification is assigned by the Finance Department and may not coincide with the actual characteristics of the land.
2. Land Classification
In addition to documentation, the Land classification should be analyzed by consulting the "Plano Director Municipal" (PDM), the "Planta de Ordenamento" and "Plantas de Condicionantes". It will be necessary to obtain a "Planta de Localização" from the Municipal Council to conduct a correct land analysis.
After a proper study of all elements, we will be able to determine what is possible to build on the land and its constraints.
The most common constraints may include water lines, necessary setbacks, concessions, fire hazards, National Ecological Reserve (REN), National Agricultural Reserve (RAN), Natural Parks, among others.
4. Other Elements
Location, Infrastructure, Soil type, Topography, Solar exposure, Urban planning fees, difficulties and delays in obtaining municipal licenses, construction costs in the area, easements, preemptive rights, possibility of fractionation, among others.
Do you have questions?
Contact us for a free initial online meeting
• Is it allowed to build on land with ruins? What can be done?
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• I have a watercourse on my land, is it possible to build on it?
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• Is it possible to build on land with a high risk of fire?
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• What are the exceptions for building on agricultural land, ecological areas, and natural parks?
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• Is it possible to drill a water well?
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• Is it possible to have a house without connections to public infrastructure networks (off-grid)?
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• The land has multiple owners, is it easy to purchase?
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Ask us any question….