Property Ownership in Argentina

Buying property in Argentina is somewhat different than buying real estate almost anywhere else. Almost all transactions are conducted with cash not a cashiers check or a wire transfer but cash. Despite Pesos being Argentina's currency all real estate transactions are conducted in U.S. Dollars. When paying in cash, both the buyer and the seller may sit at a table counting until the amount in verified by both parties. Once the dollar amount is confirmed the property passes hands and title is then recorded.

1 The Buying Process

The very first thing a foreigner needs to do to purchase property in Argentina is to obtain a CDI number which is the equivalent of an American Social Security Number. You can have your attorney complete the process or you can do it yourself and the process is reasonably easy. The number is issued immediately once the paperwork has been received.

The next step is to find a knowledgeable real estate agent. Before hiring a real estate agent, conduct a thorough interview. In Argentina real estate agents have no licensing requirements, no training and no standards of conduct like in other countries. Many times a real estate agent in Argentina is anyone who is bilingual. They often have other jobs and rarely have much real estate experience. However there are many professional real estate agents and they aren't hard to find.

When purchasing property in Argentina, the buyer is required to pay his own real estate agents commission rather than the common practice of the seller paying all the commission. This commission can range from 3% up to 5% depending on the agent and the property. In addition to the commission the buyer must also pay a VAT tax of 21% of the commission.

The price of a property is based on the square meters of the property so it's very important that the square meter measurement is correct because it will affect your price. The accurate square meters are represented on the title for the property. If you are used to the measurement in square feet, just multiply the amount of square meters by 10.76.

Once you locate a property you like your real estate agent will start the negotiation process with the seller and the seller's agent. It's standard to leave a 30% deposit when making an offer and the buyer's agent will hold the deposit. Once a price has been agreed upon the purchase contract (boleto de compra-venta) is prepared and the 30% deposit becomes a 30% down payment and is still held by the buyer's agent. Once the down payment is made the transaction is now binding for both the buyer and the seller. If the buyer backs out after this point he will lose his 30% down payment, if the seller backs out he returns the 30% plus forfeits another 30% to the buyer. This detail keeps both parties on track to a successful close.