Yes, the sale as such is not an issue. If you sell because you are about to leave Chile, we advise you however to analyze whether it is better to sell as a resident or non-resident in order to optimize taxes on capital gains.
Being a foreigner has no impact on the list of documents to be provided. The documents are indeed related to the property and not to the owner. We have a dedicated guide on this subject, available for our clients. Do not hesitate to contact us.
Many owners are willing to increase the size of their property. It can be an additional room, or a full floor. It is recommended to regularize the increase of the surface with the Chilean tax authority. Many owners do not regularize the increase once the work is completed, as this increases property taxes.
It is still possible to sell without regularizing:
- If a buyer wants to buy your property cash, he will probably be more interested in buying the property without regularization, in order to avoid to pay higher property taxes.
- However, if your buyer needs a bank loan to make the purchase, the bank will only consider loan 80-90% of the amount corresponding to regularized area. If the increase in size is substantial, it is unlikely that the buyer will manage to have sufficient funds to pay 10-20% of the regularized area, and in addition the amount equivalent to the area not regularized.
In both cases you can sell. In the second case, it is worth asking the question: can regularizing my property bring me more buyers and increase the probability of selling?
We advise you to look at the list of factors mentioned on our Appraisal service page. For more information or to request a property valuation, feel free to contact us for a 100% free consultation.
It depends on the type of property you want to sell. Let’s have a look at residential properties first.
In Chile, many real estate transactions take place in March / April. In December, the Chileans are busy with Christmas, and in January / February, many are on vacation. There are few buyers on the market during these three months. All activity resumes in March.
We therefore advise you to prepare and fix your property in advance, so that it is ready. Indeed, after the months of March and April, the number of buyers drops. Those who found a property have bought it, and the others often postpone their purchase.
The next interesting period to sell is early spring. The “Fiestas Patrias” that took place September 18th mark the end of winter. The months of October and November are interesting because the temperature and climate make your property look better.
Of course, these are general rules about market dynamics. There are many exceptions. A small apartment well placed and at a good price can be sold easily anytime during the year.
If you sell commercial real estate, or if your potential buyer is an investor, the season does not matter. For example, at Bretagne, we explore the market on a daily basis in search of good deals for our clients. They can buy anytime of the year, if an interesting deal comes up.
It depends on your situation:
- If you buy a property using a mortgage loan granted by a Chilean bank, the bank is always going to request a lawyer to conduct a “estudio de titulos” (title search) to verify that everything is in order before lending the funds. There is a limited need to hire an other lawyer (as the bank is anyways going to charge you the cost of their lawyer).
- If you buy cash, it seems to us absolutely necessary to carry out a good title search before buying. Contact us if you want recommendations of good, affordable lawyers
- If you sell, it is also useful to check the terms of the contract, and make sure that the notary’s instructions and the sale contract guarantee your payment.