Portugal’s consumer association, DECO, has demanded legislative changes covering condominium sales so that unwary buyers are not left nursing someone else’s debt.
In a simple move, DECO wants condominium sales documentation to include a statement from the condo administrator that there are no overdue condominium fees. Currently, buyers become responsible for overdue condo fees which in some cases have added thousands to the cost of buying.
DECO lawyer Joaquim Rodrigues da Silva said the proposal is pretty simple, it should be down to the seller to produce a certificate to show that all condo fees are paid up to date, adding that DECO gets numerous complaints every year from people who unwittingly have been saddled with condo fee arrears.
DECO’s chief said that "the association receives about 10,000 requests for information or complaints every year on this topic.”
Based on its own survey, DECO found that when there are conflicts of a judicial nature over condo sales, 60% are related to accumulated debt that has landed in the buyer's lap.
A certificate of condominium debt would work as a preventative and as a reactive tool, allowing parties to know how much the debt is and to work out whether the seller or buyer pays the amount due.
"One way or another, either the previous owner, or the new owner, will pay the debt which certainly would reduce the debts that most condos in Portugal are facing today. In some cases this has led to property degradation," said Joaquim Rodrigues da Silva.
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