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
*
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