[BUYING AND SELLING REAL ESTATE IN CHILE]
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full, Seller will often be obliged to both waive its action to terminate and grant settlement to the Buyer’s obligation to pay. C. Form of sale and delivery: This is usually done ad corpus , which means, “in its current state”. The Buyer declares to acknowledge this situation, and that the property is free of any encumbrances and, in general, any limitation to ownership. However, for large plots, mainly rural real estate, the parties usually agree to review the property's exact surface through a topographical survey, setting a unitary price per square meter sold, which may eventually result in an adjustment in the price. For example, if the topographical survey reveals that the property's actual surface is less than 2% of the property's surface in its titles, that difference is accepted by the Buyer. If the difference is higher, the Buyer will be entitled to request a proportional price reduction. Other commonly used conditions include:
contracts of any workers of the property have been terminated. D. Titles: the sale is usually subject to the condition of having the Buyer's attorneys review the legal titles of the property. If the titles do not conform to the Law, said condition fails, and the Promise to Purchase turns void with no party liability. A review of the property's legal titles seeks to verify, at least, that:
The Seller, either directly or by adding the possession of the property by prior owners, has owned the property for at least ten consecutive years (being this term the statute of limitations for acquiring real estate). The Seller (and prior owners), especially in the case of corporations, were legally entitled to acquire, maintain, and sell the property (i.e., corporations are mandated by Law to count with the authorization given by an extraordinary shareholders meeting, of the sale of real estate that represents 50% or more of the company's assets). The property is not subject to encumbrances and limitations that may hinder its transfer or its full exploitation and use by the Buyer, due to, for example, leases, seizures, mortgages, prohibitions, mining permits, easements, expropriations, usufructs, environmental conservation rights, co- ownership regulation, etc.
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For condominium properties, Buyer will have to submit to the relevant Co-ownership Regulation. The property must be delivered empty, with no debts of any kind, i.e., land tax, utilities, common expenses, etc. In the case of rural property, it must be delivered without workers of any kind. The Seller guarantees that the labor
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ILN Real Estate Group – Buying and Selling Real Estate Series
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