Real Estate Law in Chile, South America: Conducting a Title Search

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Real Estate Law in Chile, South America: Conducting a Title Search
Page 2: Real Estate Title Searches in Chile
Page 3: Chile Title Search Documents
Page 4: Real Estate Surveys in Chile
Page 5: Goverment Expropriation in Chile

Page 4 of 5

Surveys and boundaries in Chile: The title description, the plot registered, and the boundaries description (Minuta de deslindes)

In Chile when purchasing urban properties, boundaries are usually clearly determined, and fully described on the title as registered at the Property Registry. Common problems in urban areas are typically related to ownership, inheritance, and pending legal claims; but, rarely with the property lines or boundaries. However, the situation in the cases of agricultural or rural land is radically different. We have detected many serious flaws in the system of registration and the national survey system recorded with the Bienes Nacionales (the Chilean department of the interior ) and their national data base.

For example, in the case of agricultural land, subdivisions must be approved by the Agricultural Authority and registered in the Bienes Nacionales Office (National authority for public property). For that reason the engineer or surveyor in charge of that subdivision must present the project to those authorities for approval in Chile. The authorities should check if the survey is correct, and in accordance with the previous documents and that all boundaries are consistent. Being an act of authority, they are presume to be correct; but, in practice we have encountered serious errors with the plots. In terms of legal consequences, a mistake of this sort will end in Court proceedings, independently of the legal responsibility of the official that approved such a plot with the errors. Double checking that the plot presented to the authorities has been done without mistakes is essential.

Thus, as standard practice we recommend to all of our clients that properties be independently resurveyed before purchase, and when preliminary information in the title search indicates a problem we insist that the property be resurveyed ( e.g. the property is on a river, or descriptions from one title to the next does not match ).

Following the subdivision, if we check the registered title description, generally when subdivisions of the property have taken place, the limits are not only described on the title, but detailed on a separate document attached to the Registry (protocolizado) called "Minuta de Deslindes". In most cases the old boundaries will be described on the title vaguely, and usually describe the border in reference to the ownership of the neighboring properties that might have changed or had errors itself. In rural areas, it is typical to find titles describing the limit like the following:

North: Property of Carlos Matamala, separated by a fence.

South: River Claro in 5 meters of the highest waters.

East: Property of Carrera Family, separated by a fence.

West: Property of Carlos Matamala, separated by a fence.

As we can see in this case, there might not be even reference to how many meters each line has or if it is a straight line or skew. As the property gets split, descriptions are better and the plots registered have GPS references. For these reasons it is crucial to check the description on the document called "minuta de deslindes" and plot itself. Also, it might be necessary to check the titles of the neighboring properties and their plots in a sort legal and surveyor forensics operation to determine the real property lines.

When properties have not been subdivided, checking the old plots on the field it is very important. Most of the references on those old plots are to either natural marks (e.g. rivers, old rotting logs)- that might have change - or owners that might not be the same. That said, for the most part, tracking down problems tends to be easy, as the situation in conflict might be of public knowledge in the community. This is where getting out and getting to know the neighbors, the ranch hand that works down the road, and the local city officials becomes a critical tool to detecting problems.

We have seen that in most cases with rural property in Chile boundaries are not as easy to determined based on titles and legal documents alone. They do represent the basis for a safe purchase, but many steps should be taken to verify they are correct. Re-surveying the property, establishing GPS coordinates as reference on the Sale and Purchase agreement, checking the neighboring properties not only in paper but by talking to the owners, and marking the boundaries on the property with metal survey markers (not common practice in Chile) are just a few of the many steps that might be taken in order to avoid legal crusades in the future when purchasing property in Chile.

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Real Estate Law in Chile, South America: Conducting a Title Search

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Real Estate Law in Chile, South America: Conducting a Title Search

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