Constitution of Horizontal Property

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The Constitution of Horizontal Property is the legal process that allows the division of a building into several autonomous units (apartments, shops, garages, etc.), enabling their legal individualization and the shared ownership of the common areas of the building. This process is regulated by the Portuguese Civil Code and its primary objective is to facilitate the organization and formal registration of parts of a property that are subject to co-ownership, being essential for the creation of condominiums.

Objectives of the Constitution of Horizontal Property

Property Division: The main goal of the constitution of horizontal property is to divide a property (typically a building or housing complex) into independent units, where each unit corresponds to a part of the building and can be used autonomously.
Creation of Condominium: By constituting horizontal property, a communal ownership of the common areas (such as staircases, elevators, roof, and hallways) is also established, and these areas are jointly managed by the owners of the individual units.
Legal Security: The formal constitution of horizontal property ensures the legal separation of private and common areas, allowing each owner exclusive rights over their unit and shared rights over the common areas.

Procedure for the Constitution of Horizontal Property

The process for establishing horizontal property involves several legal and administrative steps:

Preparation of the Constitution Project: The first step is the preparation of a technical project defining the division of the property into autonomous units. This project must be developed by an architect or engineer and must detail the division of areas, identification of the units, and description of the common areas of the building.
Approval of the Project: The horizontal property project must be submitted to the Municipal Chamber for approval, in compliance with the local urban planning and construction regulations.
Public Deed Preparation: After approval, the process is formalized through a public deed, which must be prepared by a notary. This deed establishes the rules for the use and management of the building, defining the autonomous units, common areas, and the percentage of participation of each unit in the common areas.
Land Registry: The public deed of constitution of horizontal property must be registered in the Land Registry, which assigns each unit a unique legal identification (with the registration number and detailed description of the unit).
Condominium Regulation: In parallel, a condominium regulation is prepared, which defines the rules of cohabitation, maintenance responsibilities for common areas, division of expenses, rights and duties of the owners, and other aspects.

Importance of the Constitution of Horizontal Property

Legal Security: Ensures that each unit has its own legal identification, with exclusive rights over the unit and a proportional share of the common areas, guaranteeing legal security for transactions and cohabitation within the building.
Condominium Management: Facilitates the management of the building, as the autonomous units have an organized legal structure, allowing the creation of owners' assemblies to make decisions about the management of common areas and collective costs.
Real Estate Transactions: Simplifies the purchase, sale, and lease of units, as each unit now has a unique property identification. Additionally, the creation of horizontal property gives the owner the ability to sell or rent the unit independently.
Responsibility and Ownership: Clearly defines the responsibilities of each owner, including the payment of maintenance costs for common areas, as well as the division of common spaces (such as the roof, staircases, elevators, etc.).

Structure of a Building in Horizontal Property

Autonomous Units: These are the parts of the building that belong exclusively to each owner. Each unit can be a dwelling, a shop, a garage, or any other space that has independent usage.
Common Areas: These are the parts of the building that belong to all the condominium owners, such as the roof, staircases, elevators, hallways, gardens, etc.
Percentage of Participation: Each unit has an associated percentage of participation in the common areas, which determines the share of expenses and responsibilities the owner has regarding the common areas.

Conclusion

The Constitution of Horizontal Property is a crucial process for organizing the ownership of buildings with multiple autonomous units, allowing the legal individualization of each unit and the shared use of common areas. In addition to providing legal security, it facilitates property management and real estate transactions, contributing to the smooth functioning and cohabitation within condominiums.