Property brokerage – Legal obligations to the brokerage firms

Property brokerage

Real estate activity (property brokerage) is currently regulated by the following diplomas:

i) Portuguese Law no. 15/2013 of February 8th

ii) Portuguese Decree no. 199/2013 of May 31th

iii) Portuguese Regulation no. 16/2014

In the normal exercise of its activity, the brokerage firm must assure, among others, the following formalities:

  • In public attendance places, the property brokerage firms should be identified by presenting their complete corporate name, license number and the validity period of the latter.
  • In all external activity (contracts, publications, mail, advertisement, etc…), the firm should present their name and their license number.
  • The firm’s legal representatives should identify themselves through identification cards provided and issued by IMPIC (Institute of Public Markets, Real Estate and Construction), presenting them in all their interventions.

1 – The brokerage firm is also obliged to:

a) Make sure that, in the moment of the conclusion of the mediation contract, all of their clients have the capacity and legitimacy to contract in the business they’ll promote;

b) Make sure of the correspondence between the characteristics of the property object of the mediation contract and those provided by the clients;

c) Suggest to the recipients the businesses for which you are in charge, using the highest degree of accuracy and transparency about the characteristics, price and terms of payment of the property, so not to mislead them;

d) Communicate the recipients immediatly of any event that can compromise closing the deal.

2 – The brokerage firm is expressly forbidden to:

a) Receive compensation from both clients and recipients on the same trade;

b) Intervene as an interested party in any trade regarding a property included in the mediation contract of which they are a part of;

c) Enter into a property brokerage contract when the circumstances allow for, reasonable, doubt of the admissibility of the trade, whose promotion is suggested;

d) Proceed to the property evaluation of the properties object of the mediation, as well as all the properties inserted in the portfolions of property brokerages with which he/she maintains any relationship of dominance or group or those that present themselves in the market under the same commercial brand.

Property brokerage|