Real estate—Chile—Q&A guide [Archived]
Real estate—Chile—Q&A guide [Archived]

The following Property practice note provides comprehensive and up to date legal information covering:

  • Real estate—Chile—Q&A guide [Archived]
  • 1. How would you explain your jurisdiction’s legal system to an investor?
  • 2. Does your jurisdiction have a system for registration or recording of ownership, leasehold and security interests in real estate? Must interests be registered or recorded?
  • 3. What are the legal requirements for registration or recording conveyances, leases and real estate security interests?
  • 4. What are the requirements for non-resident entities and individuals to own or lease real estate in your jurisdiction? What other factors should a foreign investor take into account in considering an investment in your jurisdiction?
  • 5. If a non-resident invests in a property in your jurisdiction, are there exchange control issues?
  • 6. What types of liability does an owner or tenant of, or a lender on, real estate face? Is there a standard of strict liability and can there be liability to subsequent owners and tenants including foreclosing lenders? What about tort liability?
  • 7. How can owners protect themselves from liability and what types of insurance can they obtain?
  • 8. How is the governing law of a transaction involving properties in two jurisdictions chosen? What are the conflict of laws rules in your jurisdiction? Are contractual choice of law provisions enforceable?
  • 9. Which courts or other tribunals have subject-matter jurisdiction over real estate disputes? Which parties must be joined to a claim before it can proceed? What is required for out-of-jurisdiction service? Must a party be qualified to do business in your jurisdiction to enforce remedies in your jurisdiction?
  • More...

This Practice Note contains a jurisdiction-specific Q&A guide to real estate in Chile published as part of the Lexology Getting the Deal Through series by Law Business Research (published: November 2020).

Authors: MB Abogados—Carolina Menichetti; Benjamín Salas; Ignacio Bolelli; Diego Yávar; Sybil O’Reilly

1. How would you explain your jurisdiction’s legal system to an investor?

Chile has a civil law system, inspired in Roman law, like most European and Latin American countries.

Chilean courts do not rule in equity, except from arbitrator ex aequo et bono.

In general terms, oral contracts are binding in Chile, but litigators could face difficulties when proving their existence (obligations over a certain amount must be documented).

However, there are contracts that the law states should comply with additional specific formalities, such as the purchase of a real estate property, where both parties are required to execute the agreement by public deed, and such public deed must be registered in the Real Estate Registry.

2. Does your jurisdiction have a system for registration or recording of ownership, leasehold and security interests in real estate? Must interests be registered or recorded?

Yes, it does. Chile has a system for real estate property registration. In this regard, depending on the location of the asset, each local territory has its own real estate register. In connection with lease agreements, the law does not require the registration of such agreements in

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