The craze for prefabricated houses is here to stay. It is no longer just a trend, but has become a reality in the Portuguese real estate market. There are more and more projects and companies dedicated to this segment, which is now seen as an alternative to traditional brick-and-mortar construction, not least because of its price and speed of assembly. Even so, the construction of prefabricated, modular, or mobile homes continues to raise many questions regarding licensing. We explain everything with the help of legal experts.
Prefabricated houses, modular houses, or mobile homes (or houses on wheels) are part of a reality that has been growing rapidly lately, given the movement of people from cities to the countryside, for example, combined with the ease with which they can be dismantled and/or transported to another location. Not to mention the average sale prices, which are substantially lower than a brick house, or the speed of assembly.
Experts point out, however, that there are not only advantages, since although for many users the quality-price ratio makes the investment worthwhile, in reality these houses are more susceptible to natural phenomena due to the type of materials used in their construction and their lower robustness compared to conventional properties. On the other hand, their more or less temporary presence on a given piece of land does not exempt the owner from paying rent for its use.
Licensing of prefabricated or modular houses
Regardless of the purpose or reason for purchasing these houses, there are often questions about the applicable regulations and, more specifically, whether or not they are subject to urban planning licensing. The issue is not exactly new or unreasonable, since it is not uncommon for the construction company's website or the advertisement for the sale of a second-hand house with these characteristics by its owner to disclose the (apparent) exemption from municipal licensing, only for the administrative offense to be raised later for violation of urban planning law.
The starting point for answering this question can be found in Article 2 of the Legal Regime for Urbanization and Construction, paragraph b) of which defines construction works as works for the creation of new buildings. The same law defines building as the activity or result of the construction, reconstruction, extension, alteration, or conservation of a property intended for human use, as well as any other construction that is permanently incorporated into the ground.
From this classification, it is immediately apparent that, on the one hand, the property in question must be classified as real estate and intended for human use and, on the other hand, it must be permanently attached to the ground (through columns, foundations, or piles).
Although modular houses are initially manufactured in blocks at the factory and only assembled at the installation site, it is clear that only at the final stage will they be incorporated into the ground (whether by means of a concrete base, metal piles, or any other foundation structures), thereby acquiring the classification of immovable property. Therefore, the assembly of these houses is equivalent to construction work and an urban development operation for which, prior to the start of assembly on the ground, a municipal license is required, regardless of whether the land consists of a rural building or part of an urban building.
Licensing of mobile homes
The issue of licensing may still not be so clear in cases where these structures are not effectively incorporated into the ground—namely, when the houses do not have supports embedded in the ground or are mounted on wheels—nor connected to water, electricity, sanitation, or communications networks. In situations such as these, where it is doubtful that these properties can continue to be classified as real estate, municipalities may understand that such constructions are still subject to licensing, in accordance with the principle of human use of any building, which will prevail over the temporary or demountable nature of the structure.
In this regard, the municipality of Silves issued a public clarification note on the licensing of prefabricated buildings, wooden houses, and mobile homes, which states that:
- "The potentially dismantlable or removable nature of a building of this type is superseded by its intended use for human habitation, its permanent connection to the ground, the existence of lasting, non-transitory, and irreversible topographical changes or alterations to the natural relief of the ground, and the allocation of land subject to public utility restrictions, namely the practice of prohibited activities on land belonging to the National Agricultural Reserve or the National Ecological Reserve. Therefore, even if a prefabricated building, wooden house, mobile home, container, caravan, or other similar solution is only placed on top of the ground, results from the installation of a metal structure, foundations, footings, pillars, or piles, is placed on a concrete slab or base, or is supported only on wheels, thus ensuring the resistance that only connection to the ground can provide, it is still subject to prior urban planning licensing, regardless of whether the construction or installation in question can be removed and moved to another location.
The same understanding was followed by the municipality of Sintra in its clarification on the licensing of prefabricated buildings, wooden houses, and the like, in February 2021.
Thus, although they can be classified as movable property when they are not embedded in the ground or connected to water, sanitation, electricity, or communications networks, these structures may still be subject to licensing by the relevant municipal council, even if they can be removed to another location, invoking the prevalence of their human use and the fact that they do not alter the topography or land use rules.
Source: idealista/news