Buying or selling a home in the coming months? There is important news you should know about. Decree-Law no. 108/2026 comes into force on 1 October 2026, the biggest reform of urban planning permits in decades. Behind the technical name is a change that directly affects anyone transacting a property and that brings, above all, more protection for the buyer.
Why does this law exist?
Over the last two decades, the construction of new homes per year has fallen sharply. An earlier attempt to simplify permitting ended up creating rules applied differently from one municipality to another, causing confusion. The new law tidies things up: it speeds up deadlines, clarifies concepts that led to disputes and, above all, makes processes more legally secure.
The big news: the return of the "urban planning title"
This is the part that matters to buyers and sellers. From October, every purchase and sale of urban property must expressly state whether or not the home has an urban planning title (what many people used to know as the "alvará").
In practice, the deed or the contract must contain one of three possible statements:
- The property has a title and it is presented: the ideal situation, everything in order and documented.
- The seller states they have one but does not present it at the time: acceptable, but worth confirming.
- The seller states there is no title: a situation to clarify before moving forward, as it may involve regularisation costs.
The important detail: this statement can no longer be "implicit" or confirmed later, it must be explicit, and if it is not, the transaction is exposed to nullity and to problems after the sale.
Faster processes, but more responsibility
The law also speeds up permitting. Prior notification becomes the rule: in many cases, the builder can start work without waiting for municipal approval, with the council inspecting during and after. There is also so-called tacit approval, if the council does not respond within the deadline, the request is deemed approved. This is good for ending files stuck in administrative inertia, but there is a nuance worth keeping in mind: approval by silence is not the same as technical verification. Work can go ahead without anyone having checked the project, which reinforces the importance of doing things carefully and with the paperwork up to date.
What this means if you are selling
If you are thinking of putting your home on the market, the best advice is to plan ahead. Gather your urban planning documents in good time.
- A copy of the property's urban planning title, or, if you do not have it, the reference of the municipal file so you can request the certificate from the council;
- Confirmation of any works or extensions carried out after the original construction, and whether they have their own title;
- If your home has works that were never formally approved by the council, it is better to deal with that before selling, regularising early avoids delays and reduces the risk of the deal falling through halfway;
What this means if you are buying
For the buyer, the message is simple: the urban planning title is your protection, do not move forward without seeing it.
- Always read the urban planning title clause in the promissory contract and in the deed before signing;
- If the statement says the property has no title, seek legal advice before proceeding, there may be regularisation costs to consider;
- Always involve a lawyer or solicitor to confirm that the title is valid and matches the actual property;
A note on small works
Many people have carried out "small works" over the years without dealing with the paperwork. The good news is that some works are exempt from a licence: reconstructions without an increase in area, energy efficiency improvements (such as solar panels or new window frames), interior alterations with no exterior impact. But be careful: exemption from a licence is not exemption from the rules. These works still require a notice of the start of works to the council, up to five days before beginning.
In short
From October, buying and selling a home becomes a more transparent process, a property's planning status can no longer stay in the shadows, it must be declared. For buyers, it means more security, for sellers, one more reason to have the paperwork in order from the outset.
At SCI Properties we handle every transaction with this care. If you are thinking of buying or selling and want to understand how this new law affects your specific case, talk to us, we help you prepare everything in advance so nothing holds up your deal at the decisive moment.
This article is for information purposes only and does not replace personalised legal advice. In specific situations, always consult a lawyer or solicitor.
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