Expats Property Listing is a Chilean realtor company with more than 12 years in Chilean rental and selling market. We give a personalized assistance to foreigner for the search and house hunting in Santiago de Chile.
Our areas of search are, Las Condes, Vitacura, and La Dehesa communities (any other areas to search, are charged apart). This three areas are the most demanded locations in which expatriates live.
We maintain a big amount of properties and best of all we have commercial partnership with 90% of all other realtors in Santiago. Because in Chile, there is no obligation for owners to have only one realtor, we can get to the selected house by many means (with a few exceptions).
TRUST; Our assistance to the client and to their company will be founded in information, we will always notify if a property is over priced or if there is any suspicious problem with the property. We do the due diligence of the property before contracting it, certifying the owner rights to sell or to rent. We will analyze the rental or selling contracts in details before passing through your lawyers; legal issues don’t complete what it means living in a property on daily basis.
Chile rental & selling market can be tricky, differs from other real estate markets mainly because is a not well regulated business. Let as inform you of the most important items that you have to consider before renting or buying a property.
PRICING: Dollars Chilean Pesos UF?
The national currency in Chile is “peso chileno”, but all properties in Chile when you search in internet will be priced at “UF”. What does that mean?
UF (Unidad de Fomento) is a currency that adjusts by inflation. And therefore, all prices are in UF to be readjust automatically.
If you want to know the value of the UF only enter this link below where you can transform dollars to UF http://www.nacionales.cl/conversor/dolar-uf
Overcome this issue, now we will go into detail on how to get a property in Chile.
BUYING OR RENT IN CHILE
Because the price of monthly financing is the same price as a rental. In addition mortgage credit are very easy to obtain compared to other countries in Latin America, and the bank here in Chile finances from 80% up to 90% of the property, that means you have to give only 10% to 20% in entrance, moreover the interest rate are very low compared to other neighbor countries (average 3,5 to 3,8 last five years). In addition, all funding that you pay when you sell the property you will received the money back. And we can tell you that you will receive more than you paid because of the UF miracle (always property go up and never devaluate) and also because of property valuation in the market. For that if you are coming to Chile for a couple of years a good strategy is to rent for a couple o months and buy.
RENTALS
COST OF REALTOR
For rent (lease) property, Chilean has the habit of dividing by 50% real state agent commission. So you will have to pay 50% and the owner pays 50% also. An observation regarding this point, we charge 75% of commission to the expat, because of our full assistance. (please check service pricing)
You will pay the commission and still have to give a guarantee. Usually they ask for a guarantee (Bond) (1 or 2 months rent in advance).
Landlords will also ask for a guarantor who must be a Chilean or a company with residence in Chile, they do not accept foreign. If you are not in this situation, they will ask for prepayment or increment the bond or guarantee. (please inform these situation in advance so we can do a strategy that suits your needs).
RENTAL LIABILITY (The Law)
Rental Liabilities; As said before Real estate is not well regulated in Chile, it is based in an old law call “Codigo Civil appendix Rentals” that involves all type of rentals, with few mentions to real estate market and a general consideration of who has the responsibility of fixing and maintaining a property. In general the lessee is responsible of all problems that can happen in a property with exception of structural damages. There other laws that regulate rentals, like the urban rental Law (LEY Nº 18.101 & its modifications of 2003) but it is more a procedure in which a Landlord can expel complicated tenants. Overall Chilean laws favors the lessors, for that the liability of properties and their landlords will not be like in other parts of the world, and that is the importance of a well made contract, and for that you need lot of experiences.
MAINTAINANCE COSTS
In Chile by law rental of real estate don’t include service costs, that means that over your rental budget you have to consider, water, electricity, gas, internet, cable and telephone costs. In case of buildings and condominium houses, you have to consider also common expenses (Gastos communes). If you need to include this expenses in your rental, please inform before your realtor so he can do a strategy.
DEPOSIT OR BOND
Chilean owners don’t have a good reputation on handing back the deposit of a rental. This is a delicate matter not only for the amount but also because it happens when you have left our country. Standard contracts establish that deposit cover all unpaid services and destruction of the property. But because services arrive one month later after being used, the total amount to be discounted will be known after 30 to 45 days after you live Chile. There are several ways to reduce the risk of loosing the deposit, selecting a good landlord (but you´ll never know until the end), doing a good contract (but you´ll need some one in Chile to represent you in case there is a problem), or also cut a deal with the owner previous renting the property in which he can handle immediately the deposit (in this case they tend to calculate with a 20% rise of the projected amount).
BUYING
CAN A FOREIGNER BUY IN CHILE
Any foreigner, expatriate, immigrant , multinational organization or entity controlled by foreigners can acquire a real estate in Chile, without the need of specific licenses and without being affected by specific restrictions, except for real estate located in border or coastal land, and certain public or state property.
HOW MUCH TIME IS THE BUYING PROCESS
Overall Chilean system is held by bureaucracy, for that a buying and selling process can be very extensive.
House hunting; Is a process between 2 to 6 months depending on requirements, realtor, and availability.
Buying process 3 to 5 months. The first step is the agreement between buyer and seller, particular conditions and description of how each part will be accountable in the process(3 weeks to 1 month). The second step and because the majority of properties have been bought through a credit, the first thing to do is settle the banks, (approximately. 2 to 3 months) and after this has to be registered in the national system of real estate (conservador de bienes raices), that is one month more.
LIABILITIES OF CONSTRUCTION
Chilean law strictly regulates this item, mainly because of our earthquakes. After 1960 big earthquake, Chile has one of the best engineer constructions standards in the world. For Chileans it would be unthoughtfull to construct with out following these rules (if not you go to jail), any building in Chile has to resist up to a 10 Richter scale earthquake, with out falling. New constructions have to be warranty up to 10 years; in three different stages: up to 3 years tiles, fittings, and minor appearance flawless, up to five years piping, electrical etc. and up to 10 years structural damages. On the other hand these doesn’t apply to second hand properties, regarding the piping, electrical and outer or inner condition of a property. In Chile properties are sold “Ad Corpus”, meaning “Just as it is”; with no guarantees what so ever from the previous owner. (for that is a good idea to buy new, and then sell after you leave Chile), with out being held responsible.
DUE DILEGENCE AND INSPECTOR CHECK OF PROPERTIES
Chilean second hand properties are not inspected nor checked. They are sold as they look “Ad Corpus”, it can be solicited a technical inspection but is not responsibility of the former owner to repair damages, this has to be pre-negotiated before signing the buying agreement.
BUYING & SELLING CONTRACTS
New buildings; there are few areas in which we can negotiate (only price), companies apply standard contracts and are difficult to change (because of high demand on new buildings).
Second hand properties; this is more difficult if you want to buy or sell, you have to be aware of multiple details, that can delay your buying or selling even without a trustful lawyer or realtor you can even loose your money. Here you need a good realtor with law knowledge and business practices and conduct of the market.
COST OF REALTOR
For agency service, chileans has the habit of dividing the realtor commission. So you will have to pay 2% and the owner pays 2% over the property value . An observation regarding this point, we charge 3% of commission to the expat, because of our full assistance, including lawyers expenses. (please check service pricing)