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Article by: Joaquin de Cristobal info@jdcpropiedades.com.ar Published: 21/05/2008

Escribano.

Purchasing contract signature (Boleto de Compraventa).

The "Escritura".

To concrete the purchase you have to use the services of an Escribano(Notary). The escribano will make a title study of the titles, verify the ownership rights of the seller, and the property rights transmissions 10 years backwards, if there aren't any mortgages, warrants or any other limitation of the property right of the seller respecting to the apartment you want to buy.

The buyer is the one who has the right to choose the Esrcibano. In some cases when the building is in construction, the Constructor Company may want to impose his Escribano when the building is in the process of being built, or has no yet been finished and divided in horizontal property units.

By law you have the right to choose the Escribano, and this is central, this is the person who will certify the acquisition of the right and study the power to sell, and conditions of the apartments, and Register it.

The system in Argentina is very stable, and one of the less conflictive in the Wolrd. But to have this assurance you have to count with a premium Escribano, specialist in real estate Law, and who will do a serious study of the titles.

Escribanos charge a fee that can vary from 1,5 % to 4%. It is very important to find a reliable and good Escribano, since he will check seller ability to sell.

Purchasing contract signature (Boleto de Compraventa)

The "Boleto" is a contract between the parties where the seller obligates himself to transfer the property of the apartment to the buyer in a certain date, and you (the buyer) agree to make the payment/s.

The contract regulates the conditions of the sale. You should definitively make this contract read by an Argentine Lawyer.

This contract is usually standard and will vary depending if the apartment is under construction, or has been already finished, if you are buying cash or using a bank loan, etc.

When you sign the Boleto, you have to pay a percentage of the price agreed. The usual payment for boleto is from 30% to 50%, but I heard cases where they asked up to 80%.

This contract doesn't transmit the property, but obligates the seller to do it, and the other part to pay the price.

If you don't pay in the agreed way and time, you will loose the part of the price you already paid.

In the case the seller doesn't fulfill his obligation to transmit the property rights he will have to give you back the double of what you paid (half of it as a compensation for damages).

The parties establish in the contract the name of the Notary (escribano) who will intervene, the day and place where the escritura will be signed.

When possible you should propose the seller after making the offer and paying the Reserva, to do the Escritura directly (transfer of the property rights) and skip this step of signing the Boleto and paying at least 30% upfront.

You should be firm insisting about this condition, so you minimize the risks to zero.

This way you only risk loosing the reservation payment made with the Offer which is usually no more than a a copule of thousand pesos (U$S 300-600 dollars).

The seller may accept or not your proposal, for him is very comfortable position to have the 30% of the money while the Notary studies the property titles.

The reason for asking to sign the Escritura directly is that before the signature of the Escritura you only have creditor rights which are less strong than the owner rights that you will acquire once Escritura is signed by your Notary.

I said if possible, because in some cases for example if the building is under construction, the Escritura cannot be signed until the building is finished. So if you buy off plan, or in a building under construction you will necesarily have to sign the Boleto.

The "Escritura".

Most people think that the escritura transfers the property rights, and it is not completely true. The property rights are transferred when you receive the " possession of the apartment (called tradición). The act of possession of the property will has to be formalized in an escritura by a Notary.

What the escritura and the necessary registration of it in the Property Public Register does is to make your property rights acquired with the possession opposable against third parties (anyone apart from the buyer).

The Escritura first describes the seller name, ID number, tax id, birth date, address, and, name of the parents of both parts.

Then it describes the property, the precise location (Square number, Zone number, street, etc), the total surface in square meters, percentage of the total building it represents, and the home association contract details.

Next the Notary certifies that according certificates he obtained the seller has no legal limitations to transfer the property, and, the property has no warrants, mortages.

Finally the Escribano certifies the price of the purchase and the fact that is being paid in his presence, the seller acquits of all the rights over the property, and transfers them to the buyer, giving the possession of the apartment to the buyer. The buyer accepts this transfer becoming the owner

The Escribano will register you as the owner in the Property Public Register of Capital Federal.

The process of buying finishes with the signature of the escritura and the possession of the apartment.

IMPORTANT:You need the Tax ID number (CDI) to be able to sign the escritura

External Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=141

Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=141

Please contact the author at info@jdcpropiedades.com.ar for more information.