[BUYING AND SELLING REAL ESTATE IN CHILE]
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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.
IX. ANNUAL
COSTS
FOR
PROPERTY
OWNERSHIP 1. Property Insurance: it is not mandatory, but very common. For condominiums, insurance is contracted for the condominium's common property. When property is purchased through loans by banks or other financial institutions, the lender requires the Buyer to hire fire and earthquake insurance. Unemployment insurance for the Buyer, a natural person, is also usually demanded by financial institutions, which may be enforced contractually but is not legally mandatory. 2. Real Estate Tax: This tax is levied on a property’s assessed value. It is an annual tax but can be paid in four installments in April, June, September, and November.
ILN Real Estate Group – Buying and Selling Real Estate Series
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