Review of the Legal Regime for Urbanization and Building: What to Expect

Law 9-B/2026 of March 6 has been published, authorizing the government to amend the Legal Regime for Urbanization and Building (“RJUE”) and the legal regime on urban rehabilitation. The final text introduces several amendments compared with the government’s initial proposal.

After analyzing the definitive version of the law and the amendments made during the parliamentary process, we outline below the main measures that must be implemented through the government’s decree-law.

Urban development title in contracts

In transactions involving the transfer of ownership of buildings or building land, contracts must now expressly state whether the property holds an urban development title. Under the current regime, the obligation is limited to disclosure by the registrar, notary, attorney, legal executive, assistant, or clerk as to whether the property holds the required titles for use or construction. The purpose is to provide unequivocal confirmation of the existence—or absence—of the pertinent urban development title. This change entails prior due diligence rather than a mere warning that the property may lack the necessary title.

Despite this, properties may still be bought and sold without urban development titles for use or construction, provided their absence is clearly stated in the contract.

• Unification of the urban development invalidities regime- The government is authorized to consolidate the regime governing invalid urban development acts into one of the following models: a regime of annullability, subject to an extended limitation period; or a regime of atypical nullity, subject to a shorter limitation period. The decree-law also regulates revocation, establishing when an act becomes immune from challenge by any interested party and irrevocable, subject to legally required exceptions. The definitive version of the law introduces an important safeguard: the limitation period set out in article 69 of the RJUE may not be shorter than three years. This preserves the timeframe available to the Public Prosecutor’s Office to bring administrative proceedings.

•  Elimination of the construction embargo’s immediate enforcement - The immediate enforcement of the construction embargo for administrative actions challenging urban development acts will be eliminated. This measure is expected to reduce the risk of construction projects being suspended solely due to administrative challenges.

• Expansion of voluntary arbitration - The law broadens the scope for voluntary arbitration agreements in disputes concerning the supervision of urban development operations, urban development fees and compensation. This broadening is aimed at promoting faster and more efficient dispute resolution.

• Procedural conferences for disagreements - Consultation with external entities required to issue opinions, authorizations or approvals in urban development procedures will take place through procedural conferences, but only where disagreements arise. This mechanism was not included in the government’s initial proposal.
• Compatibility of digital platforms - Municipalities must ensure that their digital platforms are compatible with other state licensing platforms. This requirement is a key step toward digitizing and simplifying urban development procedures.
• Clear information on deadlines - Licensing authorities are now required to inform applicants clearly when the legally prescribed time limits start running. This measure is aimed at reducing the legal uncertainty that has traditionally surrounded procedural deadlines.
• Partial provisional acceptance - Partial provisional acceptance of works is now generally permitted, even where urban development works have not been licensed in phases.

• Parameters of detailed plans and transitional regime - The government is authorized to define the parameters to be included in detailed plans and implementation units that determine whether urban development operations are subject to licensing or prior notification. In doing so, the criterion based on the plan’s publication date will be eliminated. The definitive version of the law introduces a significant guarantee: municipalities may, under a transitional regime, wholly or partially waive the new requirements for a maximum period of five years, ensuring that use of prior notification is not unduly restricted.
• Shortened limitation period for subsequent review - The limitation period for subsequent review of the legal and regulatory compliance of projects and supporting documentation submitted under a prior notification procedure will be shortened. In any event, the period may not be less than one year.

• Plots allocated for public housing - The law clarifies that plots allocated for public housing, controlled-cost housing or affordable rental housing form part of the municipality’s private domain.

• Inclusion of lots for affordable housing - The area of lots or parcels allocated to construct controlled-cost housing or private affordable rental housing will now be counted toward compliance with public housing, controlled-cost housing and affordable rental housing requirements. This inclusion will not give rise to any allocation obligation or compensation.
• Compensation in urban rehabilitation - Under the urban rehabilitation regime, the law clarifies that compensation is payable to the municipality where areas intended for public housing, cost-controlled housing or affordable rental housing are not allocated.

• Correction of gaps - The law addresses gaps in the administrative offenses regime by expressly classifying the following acts as administrative offenses: carrying out urban development operations without the required permit; commencing construction works without providing a notice of commencement; submitting a prior notification without the required supporting documentation; and failing to provide proof that applicable fees have been paid.
• Revocation of increased fines - The increase in fines provided in article 98-8 of the RJUE, applicable to administrative offenses committed in the context of urban development projects subject to prior notification, is revoked.

• Police supervision - Police supervision may be required for urban development operations where necessary for traffic management or to ensure the safety of individuals and property, particularly in situations involving the closure of public roads.
• Exemption from prior administrative review - The government is authorized to regulate the procedure for requesting municipal opinions on the exemption of urban development operations carried out by public authorities from prior administrative review. This issue was not addressed in the initial draft of the law.

Law 9-B/2026 of March 6 is an enabling statute. The government now has 180 days to approve the decree-law implementing the measures. Until that decree-law is published, the amendments to the RJUE and the urban rehabilitation regime will not enter into force. We will continue to monitor the legislative process and report on any developments.