Buying Property in Peru

In these times of regressed economy, Peru is considered to be a safe bet as far as investments are concerned mainly due to its stable economic and political conditions that are beneficial to its developing economy.  Peru offers a whole lot of awesome opportunities for foreign investors who can be assured of considerable returns for their investments. Most international investors find it profitable to buy property in Peru and rent it out at attractive rates. Peru is also an attractive place to live in and lots of foreigners have made it their secondary home.

Whatever the objective, when buying property in Peru, it is imperative that you are aware of the law of the land that especially deals in real estate. This is to ensure that you do not fall prey to fraudulent activities and that your rights are well protected.

Once you identify the property that you would like to buy, and start negotiations with the seller, you could request the seller for the relevant details of the property for obtaining the ‘CRI’ or ‘Certificado Registral Inmobilario’. It is also a prerequisite that you collect the relevant information regarding the original legal title of the property from the SUNARP or the ‘Superintendencia National de los Registros Publicos’ and also make sure that it is up to date.  These processes require the services of a good lawyer who can guide you effectively to this regard.

Another important factor before buying a property in Peru is the existence of restrictive covenants if any, in the property you are interested in. sometimes, it so happens that due to the specific placement of the property, the municipality has the right to determine the developmental procedures to be taken place in that area. This could hamper the intentions of the owner. To avoid such a situation, it is always better to know beforehand if any such covenants exist.  Before buying a property, ensure that you are in possession of the ‘certificado de parametros urbanisticos’ (building parameters certificate) as well as the ‘certificado de zonificacion’ (usage verification certificate), and make a double check on the property rules with the concerned people. You will also need to ensure that all the required municipal and property tax has been paid by the previous owner to date.
The purchase agreement giving the description of the sale follows these procedures and it is mandatory that it is certified by the Notary public and subsequently filed with the SUNARP. If all the documents are in proper order, and after remitting the due taxes, the payment exchanges hands and you are legally certified as the owner of the property in Peru.