Buying Property in Uruguay

Both the nationals and foreigners can purchase property in Uruguay with ease. It does not matter whether a person has a citizenship or not, the rules are the same for locals and foreigners. In fact the foreigners can purchase property in Uruguay even without entering the country. The purchase is open to both individuals and companies.

There are no restrictions in terms of the type of property to be purchased. One can buy rural properties, farm ranches, beachfront properties, or apartments.

The purchase process is completed by the help of a notary. The notary verifies the good standing of the deed by checking the ownership history for 30 years. An initial purchase draft is made by the notary and he/she also acts as an escrow agent for the initial payment. In short, the notary’s job is to overlook and conduct the purchase process bearing the interest of both parties in mind.

After a property is selected, the buyer discusses the price with the seller and they reach an agreement. The notary chosen by the buyer then prepares “Boleto de Reserva” which is the first sales document recording the commitment of sales from both parties. With the signing of this document, 10 % of the price of the property is deposited with the notary in escrow.

With this draft, a closing date is also set which is within 30-45 days from the date of signing. This is the window that is used to verify the documents and the standing of the property. This is done by verifying records in the Public Registry and checking the tax papers.

By the end of this period, the notary drafts the closure document called “Escritura de Compraventa” which once signed requires the full payment to be made and the purchase is recorded in the Public Registry as well.