What are the Steps Involved to Buy a Property in Chile
The process is basically similar to the purchase steps of most western countries. There are of course dozens of permutations depending on the circumstances of each situation case- by- case but below I outline the basic ones.
Traditional Chilean to Chilean Sale
1). Locate a Desirable Property
2). Negotiate an Acceptable Offer
3). Deposit Contract
4). Title Study
5). Sign Purchase Agreement (While at Notary submit funds balance to be held)
6). Register the Property at the Land Office for that Area
7). Sale Completed & Funds Released to the Seller
8). Buyer Takes Possession of the Property
Foreign Buyers & Additional Requirements
1). Obtain a Tax Identification Number
2). Required Source of Funds Documentation / FATCA Compliance
3). Meet Banking Requirements /Approval to Receive Funds
4). International Transfer of Funds
5). Order Banking Checks
6). Deliver Legal Copies of Entire Sale Closing Process / Documents to Close Bank File
*Only use a broker that understands the extra needs of a foreign buyer & assists you with all of the steps.
The time to complete a foreign sale depends on multiple factors.
1). Liquidity or Availability of the Buyer’s Funds
2). Buyer’s speed & eagerness to advance through the required buying steps (especially documentation on source of funds and limited power of attorney where needed)
3). Docket or Availability of the Attorney’s Schedule
4). Seasonal backlog & Inscriptions at the Land Registry Office (CBR)
A foreign buyer's general rule of thumb is to allot 12 weeks to complete a sale.
This is variable to the value & complexity of the property sale, choice of venue, broker and legal counsel. In general expect an approximate 6 to 9% turn around including most fees & commissions. These costs are outlined below.
A short description of each service with the cost percentage (of the sale price) noted.
1). Broker's Commission (Buyer) 2-2.5%
2). Bank Escrow Fees 1-2%
3). Legal Services of Contracts 1%
4). Notary Review / Vault Service /
Stamp Fees & Land Registry 1-1.5%
5). Contingencies 1-2%
Transfer of the Home Owner Services
Provide legal copies of the domain registration at individual service offices when filing for transfer.
To read more general information please proceed to our question & answer section of FAQ’s.