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Frequently Asked Questions
Estate agency business
Licence
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 da Construção e do Imobiliário (InCI). Licenses shall be granted and maintained provided all the following requirements:
- All estate agents are required to adopt the form of a company;
- Applicants shall have no 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;
Remuneration
The real estate agent generally works on a commission basis. Concerning the Portuguese real estate legislation the remuneration shall only be due on full conclusion of the transaction brokered by the agent.
There are two exceptions to the above mentioned. Cases where the transaction in view, under an agency contract concluded on an exclusivity basis, is not concluded for reasons due to the client of the estate agent, in which case the latter shall be entitled to remuneration; If a "promissory agreement" is concluded with regard to the transaction in view in the agency contract, the parties may agree for the remuneration to be paid when such agreement is concluded. The real estate agents shall not receive any sums by way of remuneration, or down payments on the same, prior to the moment when such remuneration is due under the terms described.
In the event of the estate agent having concluded agency agreements with both the parties in the same transaction, for which the material subject matter is the same property, remuneration shall only be payable by the first party to have contracted the agent, unless all the parties expressly agree to divide such fee.
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