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practice On The Spot House

On The Spot House

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Acronym of the case:

OSHouse

Web address of the case:

Country of the case:

Portugal

City/region:

National project

Posting Date:

8 January 2010

Last Edited Date:

11 January 2010

Author:

On The Spot House LogoFilomena's picture
Good Practice 2009

Type of initiative

  • Project or service-imgProject or service

Case Abstract

The INSTITUTO DOS REGISTOS E DO NOTARIADO, I.P., is a public institute and part of the Portuguese Ministry of Justice; on 24th July 2007, it made available a new service for citizens and business which allows performing all the necessary procedures for the transfer or encumbrance of real estate properties in a one-shot procedure to the Land Register Office.
Buying a house can be in fact a complex procedure which involves several operations/dislocations. It could be necessary, for e.g., to:

  • Obtain a real estate property certificate at the real estate property registry office;
  • obtain a business registry certificate at the commercial register office (if one of the seller or buyer are a company);
  • obtain a civil or marital status certificate (eg if the seller was listed as "married" in the land register, but meanwhile he had divorced); 
  • obtaining the license of housing certificate in the town hall;
  • request a tax administration certificate by the tax administration services;
  • notify the municipality and the Office for Management of Architectural and Archaeological Heritage; these authorities can reject the request if the property is located in certain protected in areas bounded by law; 
  • pay the Municipal Tax to the tax administration services; 
  • request  a deed by a notary; 
  • finalize the purchase and mortgage registration by  the real estate properties registry office.

With ”On the spot house” some of these steps were eliminated and the remaining ones can be performed at a single counter, in one-shot. The following procedures pertaining residential property may be concluded with the use of “On the Spot House”:

  1. Purchase and sale;
  2. simple loan and other credit and financing contracts concluded by credit institutions; 
  3. mortgage;
  4. transfer of credits.

All the procedures are carried out by the Register Offices:

  1. Obtaining the documents necessary to the business conclusion;
  2. payment of taxes (Municipal Transfer Tax and stamp duty); 
  3. performing the deed; 
  4. carrying out the necessary registries (e.g. Purchase and sale, mortgage); 
  5. additional requests: (change of tax address, obtaining the plans, Municipal Property Tax (IMI) payment remission and the Statement for the registry or the update of the property in the land registry).

”On the spot house” offers a simpler and faster procedure:

  • All procedures can be completed at a single counter with elimination of acts and formalities;
  • use of applications enabling electronic communication between register offices, tax revenue offices, banks and municipalities.

This procedure is also safer because is no longer monitored and therefore dispersed across several entities and the property legal status is accurately acknowledged when completing the act; finally the registry is updated immediately.

The costs are significantly reduced; for example the costs of purchase and sale operation with mortgage would be (in average) around 950€ + taxes and indirect cost with the traditional method while with “On the Spot House” it would be in average: 600€ + taxes and 400€ + taxes, with house savings account and with the elimination of indirect costs.

The main association of consumer protection - the DECO - recognized that the use of "On the spot house", provides a significant reduction in costs of formalities for the purchase of properties, claiming that the public sector would save on average «60 to 70 percent».

Description of the case

Start date - End date
July 2007 (Ongoing)
Date operational
July 2007
Target Users
Business (self-employed) | Business (industry) | Business (SME) | Citizen
Target Users Description

This project facilitates the lives of citizens and boosts businesses in general.

Particularly, it promotes important improvements in the functioning of the property market by significantly reducing the costs associated with mandatory formalities these businesses are subject to.

Average monthly       
AugustJulyJuneMayAprilMarchFebruaryJanuary
0707070707070707
PORTUGAL
Purchase and sell of immovables
   Number 24 862 25 243 23 425 24 814 21 024 24 944 20 280 21 622
Mortgages
   Number 30 691 28 282 26 142 26 683 20 461 22 622 18 702 19 954
Source: Statistics National Institute in «http://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_publicacoes&PUBLICACOESpub_boui=70115194&PUBLICACOESmodo=2»

Scope
National
Status
Operation
Language(s)
Portuguese

Policy Context and Legal Framework

This service was a measure in the frame of the governmental project called «SIMPLEX». SIMPLEX is a program that intends to correct and simplify the rigidity of standard processes and procedures and the associated administrative practices, to reduce the bureaucratic burden imposed on citizens, improving their quality of life, and the conditions of processing enterprises, helping to promote development and economic growth.

The European Commission has promoted the foundations of a "Program of Action for Reducing Administrative Burdens in the EU's existing regulations." The 2007 Spring European Council endorsed the program and set a goals aiming to reduce 25% the administrative burden on businesses, to be achieved with the collaboration of the European Union and the Member States by 2012; the Member States have been invited to establish their own goals at the national level.

Portugal responded to this challenge and undertook the monitoring of the program to reduce administrative burdens for companies across the EU and to develop its own program.

Project Size and Implementation

Type of initiative
Inclusive services of general interest
Overall Implementation approach
Public administration
Technology choice
Mainly (or only) open standards
Funding source
Public funding national
Project size
Implementation: Not applicable/not available

Implementation and Management Approach

For the implementation the «On the spot house» service of a project team directly responsible to the direction of the «Instituto dos Registos e do Notariado, I.P.» has been created.

This team has responsibility for establishing procedures to adopt and functional analysis of technology solutions to implement and it is constantly monitoring the performance of applications and proposed improvements to the service. This service began to be available at 7 locations and it has been further extended in a second moment, with the result that this service is already available in 255 locations/counters.

The project team is also composed by trainers that propose new location and provide training of registry services. The trainers also provide seminars and conferences to promote this service among the public in general. A helpdesk service for information about the service and for clarification of doubts and questions of stakeholders, employees or third parties is also provided by the team. Periodical statistical data are at the bases of the evaluations of the service performance.

Technology solution

The site “On the spot house” was developed using open source technology at the presentation layer and this choice remains at the level of data in an integrated manner with the support systems to the land registries.
Thus, we used the Java programming language on a Java Application Server widely used and that has been proved to have strong data robustness and scalability: Tomcat.

Regarding the data layer ORACLE Database has been used; this supports the business of land through the application Sirpa. This reuse has held an interface between the two channels (Web and Backoffice / Conservatória) in an efficient and transparent way.

The creation of the entire interface was done taking into account best practices of accessibility and usability.

Impact, innovation and results

Economic effects
€5,000,000-10,000,000

Impact

  • Reducing costs

More than 19 000 procedures of purchase and sell and mortgage have been performed through the “On the Spot House”.
Given the price of this service in face to the cost of traditional methods it has allowed citizens and bsinesses to save EUR 6 650 000 00 only in direct costs, not considering the reduction on indirect costs, by eliminating dislocations to several services.

  • Reducting time to buy,sell or get a loan through the mortgage of a real estate properties:

the reduction of the time for these formalities take is consistent, from 2 months to 1 to 5 days.

Track record of sharing

The Portuguese Ministry of Justice has established agreements with similar ministries of other countries to introduce the procedure and the associated technology. Particularly, the conditions to create this service in Angola have been created.

Lessons learnt

  • Single counter services are very important to reduce direct and indirect costs of public services.
  • The interoperability of public services decisively contributes to the improvement of services to citizens and businesses.
  • Reengineering processes, using the information technologies, improves the quality of public services.

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