[BUYING AND SELLING REAL ESTATE IN CHILE]
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Purchase Agreement, usually based on the time necessary for the Buyer's counsel to review the property's legal titles and, when applicable, to obtain financing for the purchase. The parties will also agree on the notary public's office where the deed will be entered into. In case the property's price is paid partially or entirely with a bank loan, the relevant notary public is usually appointed by the financial institution granting said loan. 6. Guarantees: The usual security to ensure compliance of obligations set forth in the Promise to Purchase (for the Seller, providing the legal titles of the property and signing the deed on the agreed date; for the Buyer, signing the deed on the agreed date and paying the purchase price), the parties provide cross-guarantees in the form of banking instruments with a sum usually equivalent to 10-20% of the sale price, which may only be collected if the other party breaches its contractual obligations. 7. Conflict resolution: Any disagreements between the parties, including any differences regarding the legality or completeness of the property's titles, are usually settled by the ordinary courts of justice or an arbitrator. 8. Formalities: Promises to Purchase may be executed as private documents, or as public deeds. In the case of a public deed, if authorized by the Seller, the Buyer may register the Promise to Purchase under the competent Real Estate Registrar, for publicity matters. 9. Prohibitions: The Seller may also accept, at Buyer's request, to abstain from offering the property to third parties or encumbering it during the term of the Promise to Purchase. If authorized by the
Seller, this prohibition may be registered in the competent Real Estate Registrar. II. BROKERS an unregulated activity in Chile. No special qualifications or permits are required to operate as a broker. 1. Real estate brokerage is 2. The common broker’s commission rate is 1-2% of the sale price, payable by both the Seller and the Buyer, unless negotiated otherwise. Brokerage is not mandatory. It is usually employed in the sale of used real estate. Sellers of new 3. residential/commercial/industrial/forestry /agro projects hire established brokerage firms to look for potential buyers, and to prepare bidding processes, usually for large properties with commercial/industrial/forestry/agro potential. III. BUYER'S INSPECTIONS 1. Inspections are not mandatory, although the Buyer usually performs a visual inspection of the property, to verify its state. Technical checks are not customary but are generally requested for old properties. The Seller usually imposes a sale "as is" of the property, meaning the Buyer accepts to purchase the property in the state verified during visual inspection. Buyer reviews technical information as part of the legal review necessary to confirm the Seller has owned the property, either by her directly or by adding possessions of prior owners, for at least ten years. 2. When buying new property, the Buyer usually inspects the property with an architect to verify any flaws or construction defects, which must be repaired before receiving the property. Additionally, the
ILN Real Estate Group – Buying and Selling Real Estate Series
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