Orphans of Decree-Law 329-A / 2000, of 22 December | Article published in Out of the box, January 12, 2016.

Orphans of Decree-Law 329-A / 2000, of December 22

(I am, for some years, an attentive reader of Out Of The Box. It was a surprise that I received the invitation from Gonçalo Nascimento Rodrigues to be on the “Associate Thinker” list. It was also with pride, as we all like to be together of the best ones!).

Out of the Box is defined as “a Portuguese Real Estate Finance portal” and a “center for sharing knowledge and information on the real estate and financial market”. It is not surprising that the shared evaluation content reflects this position in some way.

However, real estate appraisal, the subject of which I propose to write, is much more comprehensive. There are many peculiarities in the Real Estate Appraiser profession that are unknown and that have a decisive impact on people’s lives. My mission as a blog contributor will be accomplished if I manage, throughout my articles, to share some of these particularities.

Therefore, I propose to begin by commenting on the consequences of the repeal of Decree-Law 329-A / 2000, of 22 December.

The law of the urban lease regime of 1990 instituted several schemes for housing lease, among which the conditional rent regime would stand out.

All contracts on the initiative of the parties, the fires built for housing purposes by the State or its subsidiary bodies, the fires built by economic housing cooperatives, residents’ associations, housing-construction cooperatives which, in some way, fall under this regime. , had received, directly or indirectly, subsidies from the State.

In this regime, the maximum value of rents could not exceed the twelfth of the product resulting from the application of the rents rate, fixed by government decree, at the updated value of the fire.

It is curious to note that this legislation, from the year 1990, already mentioned a Valuation Code that never came to be published, and a transitional regime was envisaged that became definitive until the current housing lease law came into force.

For the calculation of the updated value of the soil, explained in Decree-Law 329-A / 2000, of December 22, the Government fixed the prices of housing construction every year for the following year, in force for the following year. square meter.

The country was further divided into three zones and each corresponded to a construction price per m2.

The repeal of Decree-Law 329-A / 2000, of 22 December, and the disclosure of housing construction prices created difficulties for entities that used it as a reference. These entities were:

  • Insurance companies, for the purpose of determining and fixing the capital to be guaranteed under various insurance contracts, namely in the multi-risk home insurance contract. These used the fixed values as a reference and, from them, extrapolated to other types of property, other than housing. For example, they used to apply the following percentages on the gate fee:

• Offices – 60%;
• Industrial pavilions – 50%;
• Garages – 40%;
• Common areas – 30%.

  • Courts, within the scope of the Expropriation Code. This code used, supposedly purely for guidance (but it was used almost always!), The amounts fixed administratively for the purpose of applying the controlled-cost or conditional rent housing schemes.
    For many years, citizens were harmed, because compensation that should be close to market value was estimated through legislation that was administratively fixed.

Confirmed that Decree-Law 329-A / 2000, of December 22, in November 2014, disappeared, how did these entities solve the problem?

It would be important for public authorities to pay attention to this orphanhood.

Do they continue to apply already repealed legislation to support the decisions they make?

Finally, the Assessment Code has never seen the light of day. Wouldn’t it be worth considering extending law 153/2015 for the evaluation of any property and for any type of evaluation that takes place in Portugal?