Chile » The Purchase Process

Purchase and Sale Contract in the Chilean Legal System is usually consensual, (it exist and has legal authority from the moment the buyer and seller agree what to sell and for how much) except in those cases where the law requires certain formalities.

In the case of real estate the contract is not perfect or valid until the signing of a formal document called escritura pública. In order to get this document (which contains the contract itself) the text must be written in a certain format, in most cases prepared by an attorney.

The draft prepared by the attorney must be transfered to an archive copy, usually a task for the Notary staff, and that copy is signed by the parties at the Notary's office. This formality does not imply just signing a document at the Notary. It is a special type of document that will become part of an Archive or Public Record at the Notary itself. At this point you just have a title. In order to be the actual owner of the property you must take a copy of the formalized contract and complete the ownership inscription at the Property Archive of the Registry.

What you must have to own a property in Chile

1. The formalized contract. (escritura pública otorgada ante Notario)
2. A copy of the formalized contract must be taken to the Registry for ownership inscription.
3. A copy of that contract with a stamp from the Office of the Registry with the Number assigned on the Index Book (Repertorio), year of the Property Archive (Año del Registro de Propiedad), and number of that inscription in the year Archive. At this point you own the property.

Before signing the contract you must have

1. The Title Report for the property (Estudio de Títulos). Make sure you have a good title, there are many problems and pitfalls with inscriptions, legal requirements, and eminent domain laws and regulations.
2. If you have a tourist visa, work visa, or you are a foreign investor, and you do not have temporary or permanent residency in Chile, you must apply at the National Tax Office (Servicio de Impuestos Internos SII) for a RUT (Rol Único Tributario).