Property Ownership in Chile

Buying property in Chile can be confusing for foreigners. The transaction process is very different than in countries like the United States. To have the best possible advantage, it's important to hire a knowledgeable attorney to guide you through this safe though complicated process.

In recent years many foreigners have relocated to Chile and after several real estate transactions have a good handle on the process and offer consulting services to ease the real estate transaction process, saving unknowing investors both time and money.

The Buying Process

Anyone can buy property in Chile. If you are a tourist with a tourist card or a foreign investor without temporary or permanent residency status you'll need a RUT. This is for tax identification purposes. If you have residency you'll need a RUN which is the same as the RUT and is also used for tax purposes. The process for receiving this number is simple and your attorney can do it for you or guide you through the process.

Once you locate an attorney they can guide you through the process of buying. This may or may not include a real estate agent. Often people drive around their desired areas and talk with locals. These people provide valuable insight to the area and point you in the direction of homes for sale. Often homes will not have a For Sale sign or just have a For Sale by Owner sign. If you do decide to use a real estate agent take your time and find one you feel is competent and knowledgeable. In Chile, like other South American countries there are no laws or licensing requirements to govern their actions. A real estate agent can be anyone so choose wisely.

After you've located a property determining the price can be tricky if it's in an outlying area. If you've chosen a home in a new community or a condo or apartment in the city this won't be such a problem. Negotiating the price for any property can be a test in patience. Often the seller's agent will negotiate with the buyer's agent on behalf of their clients. Once a price has been determined it's time for your attorney to step in and take the reins. Your attorney will need to verify title and specific paperwork required by both the buyer and the seller to accompany the sales contract before the process can be completed. There are very specific procedures and requirements that must be followed as well as a specific timeline. Your attorney will make sure every procedure is followed and timeline observed for a successful conclusion.

Buyer and seller share many of the costs related to the sale of a property, but some charges are solely the responsibility of the buyer. Real estate commission and attorney fees are generally shared by the buyer and seller. The attorney and the real estate agent usually charge about 2% of the purchase price each. Once split the buyer and the seller are each paying 2%. The notary normally charges the same fee and is split also. Title and inscription are both buyers' fees. Title is charged by the attorney and can be dependant on whether the property is located in the city or in an outlying area. Inscription usually runs about 2.5% of the purchase price.

Cash or Mortgage

Banking in Chile is safe and secure, however mortgage loans are very rare for foreigners so paying for real estate will have to be cash brought into the country. Many investors secure funds from other personal real estate, usually in their own country and use these funds to purchase their Chilean property. Your attorney can help you with this matter along with setting up your bank account.