Use permit (licença de utilização)
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The licença de utilização is the town council document certifying that a building or unit may be used for a given purpose, such as housing or commerce.
Also called autorização de utilização, the licença de utilização states the use for which the property was approved: housing, commerce, services, storage. Very old buildings may not have one because they were built before it was required.
The regime has changed in recent years. Under the current wording of the Urban Development and Building Regime (RJUE), use of a building or unit after works subject to control depends on a prior notice to the town council, accompanied by a statement of responsibility (article 62-A). Older documents still exist and are still mentioned in listings.
Example
Illustrative example: a house at auction has a 30 m² annexe built without a permit. The council only has a record of the original house. Whoever buys takes on the burden of legalising the annexe, if that is possible, or demolishing it, if not.
In practice, at an auction
In sales within proceedings, the property may be sold as it stands, without the use or building permit. The absence is noted in the sale document and legalisation becomes the buyer's burden (CPC article 833(6), which applies to sales at auction houses and, by reference, to electronic auctions).
e-Leilões warns that there is no assurance that properties have a habitation or use permit, or that any permit matches reality.
Before bidding, consult the building file at the town council and compare it with what you saw at the viewing. This also weighs on credit: banks may require the permit before lending. Check with the bank.