Entrance/Licensing Requirements

Estate agency business in Portugal is regulated by Decree-Law no. 211/2004, of 20 August. Companies which wish to operate, as estate agents, shall obtain a license to be issued by the Instituto de Mercados de Obras Públicas e Particulares e do Imobiliário (IMOPPI).

Licenses shall be granted and maintained provided all the following requirements:

• All estate agents are required to adopt the form of a company. This is particularly possible now that the law permits the incorporation of single-person companies (sociedades unipessoais), a legal form which has proved especially suited to the healthy development of small companies, in line with the trends in this sector, in order, also, to facilitate inspection;
• Applicants shall have no outstanding debts to the fiscal and social security authorities;
• One of the directors or managers of the company shall be professionally qualified;
• The company shall have positive net worth;
• The directors or managers of the applicant company shall be persons of good commercial repute.
• An third party insurance shall be provided;

In view of continuous expansion in business and the rising expectations of consumers, the new legislation review the rules governing business in this sector, therefore:

• Tighter requirements were introduced for licensing estate agents, based now on the good name and professional capability of the managers, and on the financial capacity of the company, as demonstrated by the requirement that companies have positive net worth;
• Rules were established on how companies, their representatives and service contractors are to be represented;
• Clear regulations were introduced on when and on what terms charges and fees are payable for the services of estate agents, questions which under the previous legislation led to countless complaints from consumers;
• Companies are given new duties both to clients and to the licensing authority, thereby instituting a more comprehensive regime for offences;
• New accessory penalties are instituted, extending the range of serious offences punishable by banning from professional practice and closure of establishments.