[BUYING AND SELLING REAL ESTATE IN CHILE]
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part of the fixed assets of a company, among other specific cases. VII. OTHER CLOSING DOCUMENTS 1. Condominiums: The Seller will provide the Buyer with a copy of the corresponding Co-ownership Regulation, in the case of properties that are part of a condominium regulated by Law 19,537 of Real Estate Co- Ownership. The Buyer also usually requires the Seller to provide a certificate, issued by the condominium's administrator, stating that the Seller does not owe any ordinary expenses for his unit. 2. Land tax: Real estate subject to land tax may not be transferred if land tax payments are owed to the National Treasury. Therefore, a land tax debt certificate issued by the Treasury or the Tax Authority showing no outstanding land tax payments has to be attached to the sale deed. 3. Utilities: Seller is usually required to prove to the Buyer that all bills for utilities, such as sanitary services, electricity, gas, cable TV/Internet services have been duly paid and no outstanding debts for these services exist. Buyer may request that some of these services, especially telephone and cable TV/Internet services, be terminated before the sale. VIII. RECORDING REAL ESTATE DOCUMENTS 1. Since real estate must be transferred by a public deed registered before the competent Real Estate Registrar, copies of the deed are always available firstly in the notary public office that legalizes the deed, and then in the competent Judicial Archive, after one year counted from the sale and purchase’s date. 2. Regarding the actual registration, the sale deed is registered in the property Registry of the competent Real Estate
Registrar, which may then issue copies of the property's registration to the Buyer's name and a certificate evidencing all the liens and encumbrances on the property, including mortgages, prohibitions, seizures, litigation, easements, usufructs, Co- ownership Regulations, etc. 3. Since the recommended form of transferring property is to settle all obligations that arise from the sale and purchase agreement in the same deed, this must be reconciled with the Seller's interest of not materially delivering the property until he or she receives full price paid, and the Buyer's interest of not delivering the payment of the purchase price until the inscription of the property to the Buyer's name in the Real Estate Registrar is completed. To leave no obligations pending, the parties agree in the Sale and Purchase agreement to state that the Seller received payment in that act, and the Buyer received the property in the same act. Then, along with signing the Sale and Purchase Agreement, the parties will also sign a separate document with instructions to the notary public that legalizes the deed. The Buyer provides the notary with the payment documents, which are left in escrow with the notary public. As instructed, the notary will hand over the payment documents once the notary has verified that the property is registered to the Buyer's name in the competent Real Estate Registrar and that the only encumbrances that lien the property are those that existed before the sale or those granted by the Buyer. If the instructions are not completed in a predetermined period, the notary will be entitled to return the payment documents to the Buyer once the Buyer signs a deed annulling the Purchase and Sale Agreement.
ILN Real Estate Group – Buying and Selling Real Estate Series
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