What does condominium, ownership mean?
This means a situation whereby the buyer acquires title to a unit of property (for example: a townhouse, or part of a residence) plus an equal and undivided share of those areas of the development defined as "common property". Depending on the development, common property may include the outer structure of the building, common pathways, corridors and walkways.

What is Pine Cliffs Terraces?
Pine Cliffs Terraces is a development comprising 20 units, 2 and 3 bedroom Townhouses with individual gardens, split terraces, a communal pool, located in Pine Cliffs Resort in Portugal. The Pine Cliffs Resort currently comprises a combination off Residential Townhouses, Apartments, Villas, Hotel, retail units and luxury, hotel facilities including health centre, beauty and treatment rooms, numerous residents and hotel pools, and various Sheraton/Starwood signature restaurants, bars lounge, Beach & Golf Club with a Golf Academy, Tennis, Children’s Village and 9 hole Golf coarse and other golf facilities, managed by Starwood Luxury Collection.

What am I actually buying?
The owner is buying a freehold property in a 5-star luxury award winning resort, managed by Starwood, Luxury Collection, highly regarded for its excellent quality and services standards in the international tourism market. Owners have full use of resort facilities, discounts on food & beverage as well as reduced golf rates and any other benefits that may be offered from time to time, subject ot prevailing conditions, at the sole discretion of the management company.

Will my Unit appreciate in value?
Portugal has enjoyed a very stable and continuous growth in property investment, with an average growth in excess of 10% per annum in most regions, in particular the Algarve. It stands to reason as Algarve still offers an affordable and secure tourist destination easily accessible from most countries in Europe, either as a fly or drive destination. All indications and projections are that the Algarve will under normal conditions and stable economic environment continue to enjoy the similar levels of growth of the last 10 years as a minimum.

Are the townhouses furnished or unfurnished?
Furniture is not included. Owner is free to furnish his unit to their own requirements, however interiors package, in line with show unit is available as an optional extra.

Who takes care of the ongoing repairs and maintenance?
The owner is responsible, however owner may appoint the management company for a service & maintenance contract with Management Company who will take care of this aspect on behalf of owner.

Who pays for major refurbishments?
As the units at “TheTerraces” are freehold units all responsibilities regarding repairs, maintenance refurbishments are for the owners account. The management company can however provide these services as an additional service.

Are there any restrictions on resale?
Owners are obliged to notify the Management Company of their intention to sell as soon as they have made that decision and prior to actually placing the unit on sale.
The Owners or Owners appointed agents may not advertise or place any notice on the property and or resort to advertise the sale of the unit.
In addition owner and or owners appointed agent to make suitable arrangements and coordinated access to the unit with any potential purchasers.

How can I sell my Unit?
Due to the nature of the product the management company encourages the owner to appoint Pine Cliffs Real Estate Company or credible Real Estate Company experienced in the Sale of this type of Product.

What expenses must I incur?
In addition to condominium owner will be responsible for the cost of the consumables used e.g. gas, water, electricity, telephone, etc, as well as any of the services utilized or provided by the management company, such as housekeeping, operating supplies, etc.

How much is the charge for the operating expenses?
Depends on the level and type of services utilized and provided by the management company, such as housekeeping daily or weekly, room amenities, laundry, etc. a price list with the services can be provided on request.

How much is a condominium fee?
The monthly condominium fee is calculated based on the total costs for all the services and management of all the common property areas and infrastructures enjoyed by the unit owners. This includes but is not limited to landscaping, public lighting, security, etc.
We expect the anticipated cost per month for the condominium fees to be between 1,200 and 1,800 pre annum, depending on the size of the unit (2 or 3 bedroom) and subject to the annual budget.

Should I notify someone in advance that I wish to use my Unit?
For security reasons owners are required to leave keys with resort security, owner to notify operator of check in days, upon arrival owner to collect keys, normal check in process with credit card imprint for extra consumer at hotel, etc.

What must I pay when I stay using my Unit?
Owners will only pay for all consumption bills e.g. restaurant and bar bills. If there are other operating expenses for the period the owner occupies the unit, such as housekeeping, cleaning of unit and room utilities, however this such services are optional, as it depends on the services used or provided by management company.

Who will look after the Unit while I’m not using it?
Should the owner require this service can be provided by Management Company as an additional service, costs to be determined subject to the level of service required.

Can I rent out my Unit? If yes, shall I have an agreement with the Management Company?
The decision to rent out the unit is entirely the owners, however the owner would have to apply for a touristic license, which the management company can assist with, once touristic license obtained owner would have to sign rental agreement with Management Company, however owner may be required to effect minor refurbishment to meet ITP and Starwood standards.
No rental is guarantee, if unit rented out owner will receive revenue less appropriate costs. If not rented out, no payment to owners.

What is the purchase price?
The purchase price is dependant on the unit type, location, views and other development factors.

What are the payment terms?
The payment terms are listed in the promissory agreement of purchase and sale, with an initial deposits, stage payments and final payment on signing of deeds.

When are the Terraces Units ready for use?
The construction of the touristic townhouses will start in the beginning of March and is scheduled for completion and operational by August 2009.

Is a parking space included?
Yes, however the parking is common and is not allocated to any specific unit and is not exclusive to any one unit.

Who represents my interests and who is my point of contact?
UIP as the seller is the contracting party and hence responsible of your investment and interests, and will be your point of contact. The Management Company may however delegate this function to Starwood Management Company.

Who is the operator?
The Operator appointed by the Management Company for all operational responsibilities, on the resort, is Starwood Hotels Management Company. However the Management Company reserves the right to appoint another International Management company o equal status and experience.

Do I pay the mortgage provider, or does the Management Company pay and administer this for me?
Unit owners must make their own mortgage payments to their financial institution.

Are transfers of real estate subject to tax? How much? Who is liable?

Transfer of real estate is subject to Property Transfer Tax (“Imposto Municipal sobre as Transmissões”), which is due by the buyer.

Transfer tax on the purchase of real estate is due, as a general rule, on the basis of the higher of:
(i) Declared purchase price; and
(ii) Value of the property as registered for tax purposes.

The applicable tax rates are, among others, as follows:
(ii) Urban properties used exclusively for residential purposes - progressive up to 6% in the top bracket;
(iii) Urban properties with other usage, i.e. business - 6.5%.

When are the taxes paid?

Property transfer tax is payable before the acquisition of real estate.  The buyer is required to present to the Notary, on the date of the notarial deed of purchase and sale, the document issued by the Tax Department confirming the payment of such tax.

Are transfers of real estate subject to VAT?

The sale and purchase of real estate is VAT-exempt.

Is ownership of real estate subject to tax? How much? Who is liable?

Ownership pf real estate is subject to Municipal Property Tax. The tax is due on an annual basis and is a liability of whoever is the owner of the property at 31 December of any given year.

The tax is due on the value of the property as registered for tax purposes. The applicable rates vary according to the nature of the property and tax-residence of the owner (off-shores):
(i) New Urban property, i.e. registered for tax purposes on or after 13 November 2003 or registered before but that have been purchased on or after 1 January 2004 – 0.2% to 0.5%;
(ii) Property held by entities domiciled in tax-heavens and privileged tax-jurisdictions – 5%.

Municipal Property Tax is paid by the owner of the property (individual or company) in April and September (if tax due is superior to €250) or only in April (if tax due is inferior or equal to €250).