[BUYING AND SELLING REAL ESTATE IN CHILE]
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or permits are required to operate as a broker. 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. 3. Brokerage is not mandatory. It is usually employed in the sale of used real estate. Sellers of new residential/commercial/industrial/forest ry /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. 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 sale of new property, especially for residential purposes, is subject to Chile's Consumer Protection Act in all aspects unrelated to
construction quality. Therefore, the inspection may reveal differences between the conditions offered by the Seller versus the actual needs of the property, which may configure deceptive advertising and leave the Seller liable for infringing Chile's Consumer Protection Act. IV. FORMS OF OWNERSHIP 1. Residential property is usually held to an individual's name, or the name of a company controlled by the Buyer. Joint ownership is allowed in the percentage determined by the joint purchasers, even if it is not a 50-50% assignment. 2. Commercial property is usually held to a commercial real estate (" inmobiliaria ") company's name. 3. Rural property is usually held either to an individual's name (especially in case of small plots of at least half a hectare) or to a rural real estate (" agrícola ") company's name. V. FORMALITIES 1. The purchase of real estate in Chile is categorized in Chilean law as a formal agreement. This means that the transfer of ownership does not happen when the parties sign the Purchase and Sale Agreement, but only when two copulative requisites are fulfilled: i) execution of the Purchase and Sale Agreement through a public deed granted before a notary public, and ii) the deed is then registered at the competent Real Estate Registrar. 2. If any of the parties needs to appear represented by a proxy, for example, in case they are unable to be physically present on the day of execution, a power of attorney must be granted by
III. BUYER'S INSPECTIONS 1. Inspections are
ILN Real Estate Group – Buying and Selling Real Estate Series
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