Tips for Buying and Selling Property
With the falling dollar, housing is in South American countries, such as Peru, is increasing in demand. Although there’s a bit of paperwork involved when buying or selling property, it’s well worth it. You can get great value for your money and property has been steadily increasing in value due to the demand.
Before you sign the contract, always go to SUNARP (registros publicos), it’s just in front of the Rebagliati hospital, to check out its status. You only pay a few soles.. Make sure there’s no mortgage (hipoteca) on the property and the owner doesn’t have any legal problems. You’ll need a DNI, CE or the permission to sign a contract visa. Once you’re ready to buy, go to a notary and they will tell you everything that you need. Be aware that you will need to pay taxes of 2% on the property in addition to the notary fees, which are usually less than 1000USD.
First step, you will have to sign a Minuta (which is a short document saying who’s selling and who’s buying) Make sure the notary legalizes the signatures.
Second step, you will also have to sign an Escritura (which is the long legal document that explains everything).
Third step, go together to the Municipality and you each will get two copies of a PU (Public property taxes, ex. water, sidewalks, etc) and an HR (Private property taxes, your property) You will have to fill out these forms so that the property legally changes names. You will also have to pay a fee to transfer the names.
Lastly, about payments. Many people prefer a cheque de garantia (we got ours at BCP and they cost 20USD each) We got two cheques, we gave the owner the first one after we signed the Minuta and the second one after we signed the Escritura.
In addition, after you have bought your house you should take out insurance to protect it. Mapfre is pretty cheap and very reliable.
If you want to sell property, you’ll basically follow the same steps, except the buyers pay all the notary fees. Taxes for selling are higher. You’ll have to pay 3% taxes and depending on your visa status, you’ll have to pay up to 30% of the difference on the price you bought the property for and the price you’re selling it for. For example, if you buy something for 1000USD and sell it for 2000USD, you’ll pay up to 30% on the difference, in this case it’s 1000USD. This is paid in SUNAT at the beginning of the following year. So if you bought it in 2008, you’ll pay the tax around January or February of 2009. And if you sell less than three years after you bought the property, you’ll have to pay a fine at the municipality. Fines vary according to municipality and according to the value of the property.
Sharon de Hinojosa (naturegirl321) has lived and worked (mainly teaching English) in the US, Scotland, Spain, the Czech Republic, China, Korea, and Peru. As well as teaching short-term in Venezuela and Taiwan.
She has created The LA Job List http://www.thelajoblist.blogspot.com which lists schools, institutes and universities in 19 Latin American countries which offer English teaching positions.
Since living in Peru since August 2006, she wrote The Ultimate Peru List http://www.theultimateperulist.blogspot.com With 60 pages it’s a comprehensive guide for those living in or