The Property Banks Buyers Guide to Chile
STANDARDIZED PROPERTY
Property value: 179,932,842
City: Santiago
Registration Requirements:
Procedure 1*.
Conduct
due diligence of the property
Time to complete: 9-21 days
Cost to complete: About 1 % of transaction value
Comment: A lawyer is contracted to conduct due diligence of the
property's legal history, for not less than 10 years. The lawyer
will also obtain the documents described in procedures 2-3 from the
Property Registry and the Treasury, as well as undertake the
registration formalities.
Lawyer fees for the study of the titles, drafting of the contract
and completing all the formalities involved in the registration
procedure range between 1 and 2.5% of the transaction value. While
it is not legally required to employ a lawyer for the study and the
registration, it is common practice.
Procedure 2*.
Request
copies of property titles for the past 10 years and the ‘Certificado
de Vigencia' and encumbrance certificate from Registry
Time to complete: 7 days
Cost to complete: Included in procedure 5
Comment: The copies of the property titles, the ‘Certificado de
Vigencia' and the Encumbrance certificate (‘Certificado de Hipotecas
y Gravámenes y de Interdicciones y Prohibiciones de Enajenar') can
all be requested at the same time.
Both documents are usually requested by the lawyer responsible for
the diligence of the property.
The copies of the property titles are obtained in about 2 days while
the certificates in 7 days
Procedure 3*.
Obtain
evidence of complete payment of land tax from Treasury (Servicios de
Tesorerías)
Time to complete: 1-2 days
Cost to complete: Included in procedure 5
Comment: The Internal Revenue Service Certificate (Form 2890 from
the Servicio de Impuestos Internos-SII) can be requested online at
www.sii.cl. It is filled by the notary and signed by him and the
buyer. Once the transfer has been recorded, the Registrar writes
under his signature the file number and the date of recording. Then,
he sends the form to SII.
Procedure 4.
Execution and signing of the public deed
Time to complete: 2 days
Cost to complete: CLP 30,000 (copies and other expenses at the
Notary's office) + 0.1% of property price with a maximum charge of
CLP 128,000 (Notary's fees)
Comment: Upon completion of the due diligence, the transfer public
deed is executed and signed before a Notary Public, by both parties.
The purchaser and the notary will also sign the Internal Revenue
Service Certificate (Form 2890 from the Servicio de Impuestos
Internos-SII) stating the property being transferred, its price and
the form of payment.
The SII is responsible for the fiscal cadastre.
The documentation shall include:
In the case of companies being involved, legalized copies of the
powers of attorney will be required.
Procedure 5.
Registration of the public deed at the Real Estate Office
Time to complete: 7-15 days
Cost to complete: CLP 13,500 (copies and certificates) + 0.2% of the
property value (Stamp duty)
Comment: Register the public deed at the Real Estate office.
In the case of properties located in the cities of Santiago,
Valparaíso and Viña del Mar the value is 0.2% of the property value.
For other cities the value is 0.3%, with a maximum charge of approx,
CLP 260,000.
The Registry will check the payment of all taxes related to the
property.
The Registry will provide the information of the transaction and the
value of the property and taxes to the SII within the first ten days
of the following month. The time limit for the registry's decision
is 2 days, and there is a 2-month period for the parties to amend
any mistake.
Note: The registration time refers to the Registry in Santiago.
Outside of Santiago, the time would be longer (up to 3 weeks).
The documentation shall include:
Form 2890 stating the property being transferred, its price and the
form of payment.
Procedure 6.
Obtain
a Property Certificate and a Mortgages and Ownership Limitations
Certificate
Time to complete: 2-3 days
Cost to complete: CLP 6,600 for each certificate (2)
Comment: Once the registration has been completed, it is recommended
to obtain from the Conservador de Bienes Raíces de Santiago (the
Real Estate Office) 1) a copy of the Property Certificate stating
the new ownership, 2) Mortgages and Ownership Limitations
Certificate, stating the new ownership is clean. While this
procedure is not legally required, it ensures that all the
information is correct.
There is no need for title insurance in Chile since the Registrar
and the Notaries must personally answer for their mistakes on their
functions. They hire responsible insurance for these cases.
Outside of Santiago, it may take up to 2 weeks to obtain the title
and certificates.