Portugal Suspends Key 'Casa Pronta' Real Estate Service Due to Staff Shortages
The Portuguese government's Institute of Registries and Notaries (IRN) has announced the temporary suspension of several key services essential for property transactions, including the widely used 'Casa Pronta' (Ready House) one-stop-shop. The decision, which took effect this week, is expected to cause significant delays and complications for real estate deals across the country, affecting both local and international buyers. The IRN cited a 'chronic shortage of personnel,' a long-standing issue now critically exacerbated by the summer holiday season, as the primary reason for the disruption.
In its official announcement, the IRN detailed that the suspension impacts not only the 'Casa Pronta' service but also the 'balcão de heranças e partilhas por divórcio' (inheritance and divorce settlement desk) and the execution of the Documento Particular Autenticado (Authenticated Private Document). These services are fundamental for the legal completion of property sales, inheritances, and other related registrations. The 'Casa Pronta' program, in particular, was established to simplify and accelerate the process of buying a home by consolidating various bureaucratic steps into a single point of contact.
The implementation timeline for a resolution appears distant. According to the report from ECO news, the IRN has indicated that recruitment efforts are failing to close the staffing gap. Furthermore, a new class of 'conservadores' (registrars) who have already been selected through public competition will not be in their positions until the end of next year, suggesting that the current administrative paralysis could persist for some time. This long-term deficit in qualified personnel points to a deeper structural problem within the public administration.
The immediate effect of this suspension is a forced detour for anyone finalizing a property transaction. The IRN has clarified that while its public-facing services are halted, the legal acts themselves are not monopolized by the state. Consequently, buyers and sellers must now exclusively turn to private professionals. 'One can, still, resort to lawyers, solicitors, or notaries, since these services are not provided exclusively by the IRN,' the official communication noted. This shift is expected to increase the workload and potential costs for clients engaging these private services.
Compliance requirements for property transactions remain unchanged, but the procedure for meeting them has become more fragmented. Instead of a streamlined visit to a 'Casa Pronta' office, parties will need to coordinate appointments with notaries or solicitors, which could prove challenging during a peak holiday period when many professionals are also on leave. This creates a significant risk of delays in closing property sales, potentially impacting financing arrangements and moving schedules for buyers.
There have been no announcements regarding penalties for delays caused by this administrative failure, but the onus will be on the transacting parties to navigate the new reality. Industry professionals have reacted with concern. A Lisbon-based real estate consultant, speaking anonymously, stated, 'This is a major step backward. 'Casa Pronta' was a significant improvement for the market's efficiency. Now, we are back to a slower, more cumbersome process that could deter some buyers or at least cause considerable frustration.' The lack of a clear timeline for the restoration of the service adds to the uncertainty.
The government's rationale is purely operational, stemming from its inability to staff its offices adequately. There has been no legislative change, but rather an administrative halt. Legal professionals are advising clients to act swiftly to secure appointments with notaries to avoid getting caught in a growing backlog. The situation highlights a critical vulnerability in the public infrastructure that supports Portugal's booming real estate market.
For foreign investors, particularly those on tight schedules, the suspension is a critical development. It underscores the necessity of retaining experienced local legal counsel who can navigate the alternative procedures efficiently. The additional steps and potential for higher service fees should now be factored into the closing costs and timelines for any pending or future property acquisitions in Portugal.
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