A Step-by-Step Guide to Purchasing Property in Argentina
Step 1: Offer
You make your offer stating price, closing date, name of notary public selected, and special conditions. This is accompanied by a deposit, which should be returned and doubled if the owner backs out of the deal before closing date. It is important to request updated floor plans that reflect actual construction. Failing to secure this may lead the new buyer to the payment of back taxes otherwise payable by the previous owner.
Step 2: Boleto
This is an intermediary step, usually taking place within the first 15 days following acceptance of an offer, allowing owners to receive between 30% and 50% of the purchase price and, thus, enabling the seller to secure a replacement property for the one to be sold. (This is the step that you will skip if you choose to write your contract “American style.”)
Step 3: Escritura
This is the actual closing date when all parties get together to sign the official transfer of deed. Prior to this situation, the acting notary public must be in possession of the old title deed, have performed the necessary title searches, received a surveyor’s report on the property and verified debts, liens, encumbrances, etc. When buyer and seller go straight to escritura, 100% of the proceeds are delivered at this time or a transfer to a foreign bank account is set up and verified at a second meeting.
It is important to note that the payment required for the escritura is not required to be made in pesos. In fact, most owners will accept only U.S. dollar bills or transfers to their accounts held abroad. It is not required that the buyer be personally present to sign the transfer of deed. The buyer may leave a power of attorney to a third party to sign on his behalf. Current banking legislation has been tightened up following pressure from the U.S. government regarding money laundering. In this regard, local banks will require copies of your previous year’s tax return in order to receive funds.