[BUYING AND SELLING REAL ESTATE IN ARGENTINA]
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percentage to adopt decisions in shareholders’ meetings) by foreign individuals or companies. The regulations of the PRLO provide that in the case of usufruct and surface rights, it will only control the owner of the property and not the holders of said rights. The PRLO has created a National Registry of Rural Land which oversees compliance with the PRLO. The application of the PRLO is triggered when dealing with the acquisition of real estate assets or participation in companies which own real estate assets which qualify as rural land. As noted before, the PRLO bans the acquisition of rural exceeding 1,000 hectares in the core area, or adjacent to bodies of water of certain importance, or in excess of the 15% maximum of the rural land allotted to Foreign Owners at national, provincial and municipal level. Before the granting of the deed of
acquisition of the rural real estate asset the intervening notary must procure with the National Registry of Rural Land a certificate of clearance, confirming that the above limits are not breached by the intended transaction. If the certificate of clearance is not obtained the transaction cannot be implemented. c) “UVA” mortgage loans. UVA mortgage loans are a new form of mortgage loans aimed at the purchase, repair or expansion of real estate property. They are granted by both public and private banks and represent a comparative advantage over other forms of mortgage loans, since they offer a more convenient interest rate. These loans are expressed in Purchasing Value Units (“UVAs”), which reflect the average construction cost of one square meter and are updated based on the Consumer Price Index. This is an exception to the general prohibition of adjusting based on inflation.
ILN Real Estate Group – Buying and Selling Real Estate Series
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