Warranties Granted to the buyer
WARRANTIES GRANTED TO THE BUYER
The Argentine Civil Code offers certain warranties for the buyer in a real estate transaction. The property buyer warranties embrace the sufficiency of title (“Evicción”), and the lack of hidden defects and encumbrances, including even those defects of which the seller is unaware (“Vicios Redhibitorios”).
If after the sale of the property and during the term of the warranties, the buyer is deprived of the use or ownership of the property because of defects existing at the time of the sale, the buyer is entitled to claim from the seller full or partial reimbursement of the purchase price and other applicable charges.
Since the above provisions are not of mandatory application, the parties may extend or reduce the seller’s liability for those warranties. However, any reduction in the seller’s liability will not be effective if the seller actually acknowledged the defects. Therefore it is common practice in most purchase contracts to include a clause whereby the seller declares he owns due title of the property and that the property is free from any charges or encumbrances.
Furthermore, it is customary for the seller to warrant that the property will be transferred with vacant possession and free of occupants. The purchase contract may include a provision allowing the purchaser to rescind the contract and claim penalties in the event that the seller is unable to deliver the property with vacant possession.
However it is recommended for the purchaser always making a visual inspection for any signs of occupation in the property. Because if there were any tenants, the new owner will have to take the property subject to any rights that the previous tenants might have, and could only submit a personal action against the seller for pre-existing damages or eventually for the rescission of the contract.
Additional Information:
* Legal restrictions on ownership for non-resident persons
* Transfer money to Argentina
* CDI (Tax Indentification number) & Taxes involved in the purchase of property
* Intermediaries and rates
* > Go back to Buenos Aires Real Estate Guide: The Buying Process
