[BUYING AND SELLING REAL ESTATE IN CHILE]
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public deed and said power of attorney must give all the necessary authorities to the proxy, including agreeing the sale price and form of payment, granting settlements and waiving resolutory actions. If the property is owned by a legally incapable person (such as a minor), the sale must be authorized by the competent judge. VI. CLOSING COSTS/ADJUSTMENTS 1. The notary public's costs for authorizing the Sale and Purchase Agreement are usually borne 50% by each party, unless agreed otherwise. Costs of registering the Sale and Purchase Agreement before the competent Real Estate Registrar are usually borne by the Buyer. The fee paid to the Real Estate Registrar is 0,002% of the sale price, considering a maximum price ceiling of CH$ 128,000,000. - (USD 140,000. - approx.) 2. Buyer and Seller adjust for land taxes, which must be paid in four yearly installments (April, June, September, and November). In addition to the previous, if the property is commercial, adjustments are also made for rents, third party operating expenses and everyday area maintenance expenses. 3. Land that has been subjected to agricultural purposes may be subject to taxes and payments derived from obtaining agricultural/forestry subsidies. Those subsidies must usually be respected by the Buyer or previously terminated by the Seller. For example, subsidies for irrigation works make the property owner, even after it is sold by the owner who obtained the subsidy, liable for failure to maintain the
irrigation works that were paid through the subsidy. 4. The sale is subject to VAT if the seller is in the real estate industry, or if the property is 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 21,442 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
ILN Real Estate Group – Buying and Selling Real Estate Series
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