[BUYING AND SELLING REAL ESTATE IN CHILE]
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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 1. Real estate brokerage is an unregulated activity in Chile. No special qualifications
Technical and environmental conditions that may affect the transfer or full exploitation and use of the property by the Buyer: For example, farming and forestry subsidies, debts owed to public institutions for land taxes, subsidies, declarations of public utility (which means part, or all of the property may be subject to future expropriation due to eminent domain), or the approval of the exploitation of the property by Environmental Impact Evaluation System (SEIA). If the property is rural and the sale is agreed upon before subdivision of a larger property, the Chilean Agricultural Service Office shall approve the subdivision for the buyer to acquire the respective plot. In the case of urban real estate purchased for the construction of any building, both the city and the district’s land -use master plans must be reviewed to verify if the construction in the property is authorized based on the use of land designated in the master plan.
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5. Term and place of execution: the parties will often agree on a term to enter into the 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
ILN Real Estate Group – Buying and Selling Real Estate Series
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