Promoting transparency in the real estate market

On May 25 2013, Law Nº 7/2013 was published in the Macau Official Gazette to regulate the promissory agreements for the transfer and/or encumbrance of buildings under construction, which are defined in the Law as follows: any real estate in the design phase, under construction or with the construction works completed, for which no using licence has been issued, and, in case of buildings constructed under the horizontal ownership scheme, any real estate assets, including respective autonomous units, of which the title deed has not been definitively registered.

The Law is meant to serve the purposes of regulating the function of the real estate market, reinforcing the transparency of the transactions and protecting the rights and interests of the interested parties. Thus, the Law not only establishes several requirements that have to be fulfilled when entering into transactions involving buildings under construction, but also severe consequences for their infringement by the involved parties, while recognising the competence of the Land, Public Works and Transport Bureau (DSSOPT) to supervise such matters.