Horizontal Property regime and Local Accommodation

On May 10, 2022, the Judgment of the Supreme Court of Justice No. 4/2022 was published in the Diário da República.

This judgment focuses on the incompatibility between the specific rules of “Local Accommodation” and the local accommodation of “fraction of Horizontal Property with housing destination”.

Although some doubts prevail, it is concluded that Local Accommodation is synonymous with an organized activity of a regular and intense nature, in buildings solely or considerably composed of fractions intended for permanent housing.

However, this concept is hardly compatible with the housing purpose typically assumed by the Horizontal Property regime.

When it is understood that, under the terms of subparagraph c) of paragraph 2, of article 1422 of the Civil Code, local accommodation constitutes a use other than the housing purpose stated in the constitutive title, this practice is prohibited, respecting the peace and security of the joint-owners who have their usual residence in the same building.

It should be noted that an owner of a fraction intended for housing, and who does not need it for his own residence, can monetize this heritage. However, local accommodation is not the only way to monetize the fraction. This property can, for example, be used for urban leasing under the terms of articles 1094 and 1095 of the Civil Code.

Obviously, local accommodation developed in an autonomous fraction belonging to a building consisting essentially of second homes or holiday homes, is potentially less conflicting with the interests of the other above-mentioned joint owners. In this case, the agreed solution turns out to be less justified.

However, it can be summarized that in the horizontal property regime, the indication in the constitutive title, that a certain fraction is intended for housing, must be interpreted in the sense that it is not allowed to carry out local accommodation.