ILN: Buying and Selling Real Estate - An International Guide

[BUYING AND SELLING REAL ESTATE IN ARGENTINA]

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destiny (temporal or permanent homestead or commercial), also including those with mixed uses, in accordance with local administrative regulations. The residential developments are considered a type of condominium. The main characteristics of these developments are enclosure of the development, existence of common and individual areas and the existence of an internal regulations. All of the common and exclusive parts and areas are interdependent, as well as the rights over them, forming a non-divisible whole. Aspects in connection with authorized areas, dimensions, uses and other urbanistic elements of residential developments are governed by local administrative regulations of each jurisdiction. e) Surface rights. Surface right is a temporary right over a third party’s real estate property, which confers to its holder the power to use and dispose the legal right to plant, forest or construct in said property (or a right over existing plantations, forestations or constructions), comprehending property’s terrain, soil and/or subsoil, in accordance with the terms and conditions set forth in the deed title. The third party remains the owner of the real estate property. The term of the surface right cannot exceed seventy years for constructions, or fifty years for plantations and forestations, both terms considered as from the date

of acquisition of the surface right. The term can be renewed as long as it does not exceed said maximum terms. The owner of the property keeps his right to sell and dispose of the property as long as it does not interfere with the existing surface right. During the agreed term, the surface right holder may transfer and encumber the constructions without the prior consent of the owner. f) Usufruct. Usufruct confers the right to use a third party’s real estate property. This right can apply over a whole property or just a share of said property. This right can only be granted by the owner of the property. Usufruct can be granted for life if the holder of the right is an individual or for a maximum of 50 years if the holder is a corporation. III. LEGAL FORMALITIES IN RELATION TO REAL ESTATE OWNERSHIP ACQUISITION. a) Preliminary Purchase Agreement. Under Argentine law, all transfers or creation of rights over real estate properties must be granted as a public deed before a notary. The

notary must conduct due diligence to verify the soundness of the title of the seller over the relevant property, obtain certificates attesting the ownership and the inexistence of injunctions preventing the transfer. The notary also acts as a withholding agent of the taxes connected with the transfer.

ILN Real Estate Group – Buying and Selling Real Estate Series

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