The number of properties repossessed by banks due to unpaid instalments has increased rapidly over the past few years.
As banks are not geared towards managing properties, they are forced to find alternatives to liquidate these new assets. This includes special deals for their purchase.
These special deals are the greatest advantage of buying these properties. The spreads are much lower than traditional credit. Initial commissions are much more accessible and sometimes non-existent. Deadlines are longer and the amount of credit financed can sometimes reach 100%.
However, properties sold by banks or bankrupt construction companies do not have guarantees. Legally, banks are equal to an individual selling a property and thus the five-year guarantee rule is not applicable.
But if the company is still active, then the guarantee must be valid for five years.
In light of this, DECO believes that a fund should be created to support those who find out that whoever sold them their house is not obliged to respect the five-year guarantee rule.
This way any property buyer could benefit from the guarantee period set by law.
In this column, Portuguese consumer watchdog DECO informs readers of various interesting issues and laws affecting consumer decisions.
