Legal Property Purchase Process
Stages of the purchase process
Buying a property in Chile follows a well-defined legal process that protects both buyer and seller.
1. Promesa de compraventa (preliminary contract)
The promesa de compraventa is a preliminary contract that establishes:
- The agreed price and payment method
- Deadlines for fulfilling conditions
- Withdrawal clauses and their penalties
- The tentative date for the final deed
This document is signed before a notary and generally includes a deposit or earnest money (between 5% and 10% of the price).
2. Title study
A specialist lawyer reviews the chain of title at the Conservador de Bienes Raices (property registry). This verification includes:
- Current ownership: Confirming the seller is the legal owner
- Liens and mortgages: Checking for registered debts on the property
- Prohibitions: Reviewing any court orders that prevent the sale
- Boundaries and dimensions: Confirming the lot size and boundaries
3. Public deed (escritura)
The escritura de compraventa is the definitive contract. It is signed before a public notary with the buyer, seller (or their representatives), and the bank if a mortgage is involved.
Payment of the price is made at this point, typically via bank draft or verified bank transfer.
4. Registration at the Conservador
After signing, the deed is presented to the Conservador de Bienes Raices for registration. This process:
- Legally transfers ownership to the buyer
- Takes between 5 and 15 business days
- Has a cost proportional to the property value
- Generates the new certificate of current ownership
Associated costs
When budgeting for a property purchase, consider these additional costs:
- Notary fees: For the public deed
- Property registry: Registration fee at the Conservador
- Stamp tax: 0.2% of the mortgage amount (if applicable)
- Appraisal: Cost of the bank’s property evaluation
- Title study: Lawyer’s fees
Considerations for the Aysen Region
- Some rural properties may have complex or irregular titles. A thorough title study is essential.
- Border zones require special authorization for foreign buyers.
- Large lots may be subject to the Rural Subdivision Law.
- Always consult with a local lawyer who understands the realities of the region.