The Real Estate Market

The Real Estate Purchase Process

The Steps to follow

A) Offer: Is a short document that states price, closing date, name of notary public selected and special conditions. It is usually accompanied by a strong binder which should be returned doubled if the owner backed out of the deal before closing date. The buyer will also lose amounts left as binder if he or she backed out. In residential property, it is important to request updated floor plans that reflect actual construction. Failing to do this may lead the new buyer to eventually pay back taxes otherwise payable by the previous owner. Surveyor plans are also a must for farm properties in order to ensure that reality matches expectations which may, at times, differ from the actual deed.

B) Boleto: It is an optional intermediary step, usually taking place within the first fifteen days following acceptance of an offer, allowing owners to receive between 30 and 50% of the purchase price and, thus, enabling the seller to secure a replacement property for the one to be sold. At Reynolds we recommend foreign buyers avoid this step which could lead to a 12 month withholding of up to 30% of the amount transferred in following Argentine Central Bank regulations.

C) Escritura: Is the actual closing date where all parties get together to sign the official transfer of deed. It usually takes place between 45 and 60 days from the offer date. Prior to this moment, the acting notary public, called Escribano, must be in possession of the old title deed, have performed the necessary title searches, received a surveyors report on the property and verified debts, liens, encumbrances, etc. When buyer and seller go straight to "Escritura", 100% of the proceeds are delivered at the time or a transfer to a foreign bank account is set up and verified at a second meeting. It is important to note that the final payment required at the Escritura is not made in pesos. In fact, most owners will only accept US dollar bills or transfers to their accounts held abroad. It is not required that the buyer personally be present to sign the Escritura. One may leave a power of attorney to a third party to sign on ones behalf. Current banking legislation has been tightened up as a result of world wide money laundering concerns. In this regard, local banks will require copies of your previous year tax return in order to receive funds. We will gladly contact you with alternate money brokers who will professionally and safely guide you through the process.

D) Purchase Costs: Notary (Escribano) costs vary anywhere between 4.25% and 5.5% depending on the location of the property. Realtor commissions are payable by both buyer and seller. The buyer pays between 3.70 to 4.8% (VAT included) but could pay as much as 6% depending on the type of property being sold. The seller usually pays 3.70%, including VAT.