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Chile Home  Chile Real Estate Articles Real Estate Law in Chile, South America: Conducting a Title Search
Real Estate Law in Chile, South America: Conducting a Title Search |
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Page 5 of 5
Expropriation of Private Land in Chile
The Chilean legal System
established that nobody can be deprived of their property or any of
the attributes of ownership if it is not by a general or particular
law authorizing expropriation for based on the common wealth or
national interest. The legality of that expropriation act can be
dispute in court, and always the expropriation gives the right to a
full compensation based on the market price of the property. The
amount of the compensation can also be disputed if it does not
correspond to the market value of the property. Foreigners and
Chileans owning property in Chile have the exact same rights and
responsibilities in regards to owning property in Chile. Usually for
major public projects the Government tends to pay higher prices than
the market value to avoid any possible conflicts in Court.
In order to check if a
property is being considered for expropriation there are 2 basic
documents:
Certificado de no
Afectacion Municipal (Expropriation at the county level)
Certificado de no
Expropiacion (Expropriation at the National Level)
The national level
must be requested usually at the regional office of the Ministry of
Housing and Urban Planing. The municipalities of each county issue
the other certificate and set the requirements of time and
information needed in order to get it. Both certificates have a cost,
usually under the US $20, and will declare clearly if the property is
being considered for expropriation.
Zoning Laws in Chile
Getting
information about building or restoration requirements for the
property you wish to buy, or if you are allowed to have a commercial
operation in a certain neighborhood must be done at the Municipal
level. Zoning is dealt with on county by county basis. Each
Municipality has its own set of rules for the requesting and type of
certificates you might need based on their Municipal Urban Planing
Statute. In most cases this will not be an issue were buying property
for residential purposes, unless you are planing to build a second
floor or make changes that might affect the side walk, such as fences
and access. The certificates issued by the Municipality are usually
called "Certificado Municipal de Zonificación" or
"Certificado de informaciones Previas". In these you will find
the particular details about the conditions applicable for the use of
the land and construction requirements. As a general trend, the
bigger the city, the more requirements regarding urban planing. There
are cities though, that do not have their own Urban Planing Statute
or office.
Construction Permits in Chile
In order to build
a house, the architectural project and the construction itself must
be approved by the Municipality. It is a good to ask for the
construction permits before buying a building. In many areas, mostly
rural, the projects get approved but the final certification is still
pending. (i.e. a process called Recepcion Definitiva de las Obras
where the county authorized the use of a construction for either
residential or commercial purposes). It is typical that it will take
time to get all the documents needed for that approval. Rarely will
the problem be more than bureaucracy and time, but there might be a
possibly that something more serious is occurring.
Business Permits and Land Use in
Chile
It is good to have
in mind when buying property for commercial purposes in Chile to
check if establishing a business is possible in the areas were you
are buying, and if the commercial use has been properly authorized by
the local Municipality. If the property is registered as residential,
you can ask for a change of use at the Municipality.
This has nothing
to do with your business license in Chile. For that, you must apply
with several local authorities and follow their procedures. This
reference is just regarding the use of your property.
In conclusion, you can see that conducting a
title search in Chile is not a trivial thing. We do not recommend
that you attempt a title search on your own. It is our
recommendation to seek competent legal help to conduct a title
search, but in this article we hoped to give you a reference point
for the sorts of documents you should expect to receive in a complete
title report when considering buying real estate in Chile.
Just one more word of advice. If a
title search turns up a problem on potential property you wish to buy, keep in mind
that there are very few problems that can not be fixed. In most
cases, you can still have that dream vacation property you always
wanted in Chile.
About the Author: Zandra Valenzuela is
a practicing Chilean attorney and a professor of International Public
Law at several universities in Chile. She is also lead council for
Spencer Global International Consulting and www.allsouthernchile.com.
More articles and Information by Zandra Valenzuela about owning and
buying real estate in Chile, South America can be found at All
Southern Chile and Patagonia. Contact Zandra Valenzuela with your questions at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or through our contact page .
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