[BUYING AND SELLING REAL ESTATE IN ARGENTINA]
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Although it is not mandatory, usually seller and buyer execute a preliminary purchase agreement ( boleto de compraventa ) of the real estate property, in order to agree on the terms of the transaction while all the required formalities for executing the transfer deed are complied with. In order to enter into the preliminary purchase agreement each of the parties must: (i) have general capacity in terms of the CCC as for the performance of legal acts; (ii) have an Argentine tax ID number; and (iii) in the case of individuals married under community property regimes, obtain their spouse’s assent to the sale. Preliminary purchase agreements usually include: (i) the identification of the parties; (ii) the price and payment terms; (iii) a detailed description of the property to be acquired; (iv) the current condition of the property to be acquired; (v) time of conveyance of the possession over the property; (vi) tax treatment of the transaction; (vii) general obligations of the parties; (viii) appointment of a notary public for the granting of the transfer deed; and (ix) provisions in connection with parties’ failure to compliance with their respective obligations. b) Transfer Deed. Once the due diligence of the title has been completed and the certificates have been obtained, which usually takes about 30 days, the parties shall grant the transfer deed which has
substantially the same content as the preliminary purchase agreement. Parties may directly sign the transfer deed and not sign a preliminary purchase agreement. The notary public is usually chosen by the buyer. The fees of the notary usually range from 1 % to 1.5 % of the purchase price. The fees and expenses relating to the due diligence over the title to the property are usually paid by the seller, while the remaining fees are paid by the buyer. c) Registration with the Real Estate Registry. The final stage for acquiring property is the registration of the transfer deed with the Real Estate Registry of the jurisdiction where the property is located. Once registered, the buyer’s ownership over the property is enforceable before third parties. Such registration entails certain fees which are usually comprised in the notarial fees and are also assumed by the buyer. The times involved in the registration of the deed will depend on the relevant jurisdiction, but in average this should take between 1 and 2 months. IV. TAXES. Please find below an outline of the main taxes involved in the sale of real estate property according to the latest tax reform. a) Real Estate Transfer Tax.
Pursuant to the recent abrogation of the Real Estate Transfer Tax (“ ITI ”) effective July 2024, individual tax residents (“ individuals ”) are not taxed upon the disposition of real property acquired prior to January 1, 2018 (“the
ILN Real Estate Group – Buying and Selling Real Estate Series
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