Argentina Real Estate Practices
Overview
Because of devaluation in the economy in the past several years, there are major values available from Buenos Aires to Patagonia. There is room for capital gains and good rental return within a stable currency environment.
Information is maintained by the Office of Real Property Records which is run by a state agency. Ownership of real property by foreigners is allowed without restrictions, except any Argentinean land which borders a foreign country. In this last case, a security zone check is done and the process requires some additional paperwork but in most cases there is not problem to complete the check.
Real Estate Practices
Commissions are split between buyer and seller and range from 3-4% for the buyer plus VAT of 21% on same and sellers pay 2-3% plus VAT of 21% on same.
Other fees include a notary fee of 1-2% of the closing value which is shared by both parties and a stamp tax of 2.2 -2.5% depending on the location.
There are several multiple listing services, but they are privately owned and very loose in terms of rules. Properties are mostly sold via advertising in local newspapers, signs and individual agency web sites.
Agents are required to be licensed but assistants are not, which creates large real estate firms with likely only one registered agent and several assistants acting together to close transactions. The assigned agent or an assistant will take buyers to view properties.
Mortgages are trickling into the market for foreign buyers and are mostly with terms up to 10 years with rates currently in the area of 11-14% annually.
It takes 30-90 days for properties held by Argentines or foreign residents to go to settlement but 90-180 days to close if the property is held by non-resident individuals or foreign corporations. The contract document is notarized and serves as the public document which is registered with the Office of Real Property Records within 15 days of signatures by all parties.
Information courtesy of Reynolds Propiedades & Relocation