In addition to governmental records, which are open for inspection without a fee, there also exist various private companies that sell transactional information.

The Chilean government maintains certain rights in all privately held property:

Eminent Domain - The government has the right of eminent domain only if property will be used for public purposes, or if the owner does not pay property taxes due.

Property taxes - Property taxes exist and are based on the value of the subject property.

Escheat - Property escheats to the government only in the absence of an heir.

Police power - The Chilean government does not maintain the right of police power in private property.

Freehold ownership - Ownership is unrestricted in fee simple estates.
Leasehold estates granting possessory rights only, exist as a Tenancy for Years. Dower and curtsy is not recognized in Chile. In community property, spouses are given equal rights in real property depending on the marital status of the parties.

Unlimited Partnership ("sociedad colectiva"), is a partnership in the usual form in which all partners have unlimited and joint liability.

Limited Partnership ("sociedad en comandita"), is a partnership in which one or more of the partners are subject to unlimited and joint liability for the partnership obligations, and one or more are not responsible for debts and losses except up to the amount of the capital they have subscribed

Corporations are designated by name accompanied by words "Sociedad Anonima" or abbreviation "S.A." At least two stockholders are required for organization and continued legal existence of corporation. There is no restriction as to nationality or residence of Incorporators.

Property may be held in partnership, and the partnership must be recorded as an official document. Leasehold estates are considered as contracts and therefore must be public documents. Statutory estates are governed by either will or intestacy statute. Upon lack of a will or statutory assigns, property will escheat to the State. Title may be gained by prescription. Prescription may be expressly or tacitly waived as far as it has run but no waiver can be made of future prescriptive periods. In order to acquire by prescription, possession must be uninterrupted, held for the prescriptive period, (5 years), and not run by the virtue of another recorded title. Prescriptive period is suspended in favor of persons who are minors, deaf and dumb, demented, wards or married women; it is always suspended between spouses. Prescriptive periods, in which right to enforce is lost, vary according to the nature of the action. Ten years will suffice for prescription regardless of any incapacity

The following forms of ownership exist in Chile: Sole Ownership, Community Property, Joint Tenancy, CorporateOwnership, Partnerships, and Joint Venture. Tenancy in Common does not exist in Chile.

Against a title recorded in the registry of property the adverse possession period does not run except by virtue of another recorded title.

Title to personal property may be transferred either by public or private instrument. Conveyance of title after death can only be attained via written will or by court action. Adverse Possession exists after 10 years of continuous uncontested use.

The following must be recorded in the registry of properties: documents conveying or declaring the ownership of real estate and real rights; documents constituting, conveying, modifying or renouncing rights of usufruct, mortgage and certain other rights in real estate; and judgments declaring the ownership of real property. Until such documents are presented for record the tradition of the property is not deemed affected. Other documents relating to real property or rights therein, such as leases, attachments, etc., may be recorded so as to constitute notice to third parties.

The Registry of Properties was created by the real property regulations of June 24, 1857; fees decree 254 of May 20, 1931 as amended; C Com arts 20, 21; commercial registry regulations of August 1, 1866; Civil registry law 4808 of January 31, 1930 amended and its regulations D.F.L. 2128 of August 1, 1930. It mandates that all transactions having to do with real estate or real estate transactions must be recorded in the form of a public instrument. A public instrument is one written by a notary in his protocol book from which he issues certified copies. Contracts and deeds require authentication by a notary and are kept by in the office of the notary as official documents. Deeds executed in Chile must remain with the notary who executed the instrument. The Notary will then give a copy to the title holder. This copy will serve as a legal title in a court of law.

Titles are publicly registered at the national Registry of Property, which provides a chain of title abstracts and marketability of title.

A sale of real property and rights is not perfect until a public instrument is executed (See Sec. 8.8.). In private sales of real property, rescission may be asked within four years by the vendor if it is found that the price received is less than one-half the just value of the property, and by the buyer if the value is less than one-half the price paid. If a sale of real property is made at a certain price for a unit of area, the vendor must, if the area is found to be less than that stipulated, make up the difference or refund part of the price paid; if the area is found greater, the buyer must pay more; but in either cases if the difference exceeds 10% the sale may be annulled.

A sale is completed and binding when the vendor and vendee have agreed upon the thing sold and the price, and the price thereof. In the case of real property the sale is only completed when the property is registered.

Contracts for the sale of real property or for an interest in real property must be in writing. There are three essential elements of a contract in Chile. They are all parties to the contract must be legally competent, there must be mutual agreement or "a meeting of the minds."- a mutual willingness to enter into a contract, and the contract must be supported by consideration, i.e., something of value, be it money, a promise, property or services.

Real property listing and sales contracts must be drawn by an attorney or Notary. However, form contracts for leases can be used and notarized.

Property Taxes:

A single rate 20 per mil of assessed value of real property as overall national and municipal territorial taxes, including charges for public light, pavement of streets and certain municipal loan services was established in 1969. Value assessments are made every five years or more and at least once every ten years. General assessment as well as individual assessments may be made also.

Real estate taxes are payable in four installments due in April, June, September, and November, calculated on the valuation in force at the time of payment.

Law 17235 of November 10, 1969 as amended, established a single rate of 13.5 per mil of assessed value of real property as overall national and municipal territorial taxes. Value assessments are made every five years or more, and at least once every ten years. Property of less than the legal amount is usually exempted. Real estate in regard to agricultural activities is taxed at a rate of 4% to 10% according to approximate value while other real estate is taxed at flat rate of 7%. State tax on the transfer of title is based on the real consideration involved. The tax must be paid at the time the title is executed before the notary or, if executed outside of Chile, when it is authenticated in Chile. Value-added taxes are due on any real estate transaction.

The closing procedure is regulated by law and closing takes place typically 60 days after the contract of sale.

Land Use & Control:

There are controls on how a parcel of real estate may be used. Zoning is used to control growth and to separate land uses that are incompatible. In addition, public subdivision regulations exist to control how land can be converted into buildable lots. Covenants and deed restrictions do not exist in Chile.

Foreclosure sales are conducted by a judge after a property has been legally attached. Property must first be valued, unless value is agreed upon and undisputed. The property is sold to the highest bidder. Once the sale of the subject property is final, the debtor has no legal recourse.

Parties may agree to any rate not exceeding 50% of current banking interest, as determined every month by central bank.

Fixed rate loans are common in Chile with the average term being greater than ten years. Loans are typically 60%, but they do not exceed 75% of the value of the dwelling, and the borrower’s monthly household income must be at least four times the monthly loan repayment. Loans are most commonly taken out for twenty-year terms. The balance of a mortgage is generally indexed by the variation of the Chilean Consumer Price Index, and so the interest rate on mortgages, plus the commercial bank’s common 3% extra lending rate, are in real terms, indexed against inflation. Both banks and private lending institutions originate loans. Funds are brought into the housing finance market from pension funds by the purchase of a financial security instrument called a "letra hipotecaria" or LH. A "hipoteca" is a mortgage, and so a LH is a security issued on a residential mortgage loan.

Government subsidies are also available to stimulate the growth of home ownership.In 1994, about 30,000 families took part in the housing subsidy scheme. The average amount is 30% of the mortgage loan, but to qualify, families must have a minimum level of savings and can only get the mortgage from the state bank, the Banco del Estado.- Journal of Housing Research.

Acquisition costs

Property and ownership information

Transaction information

Real estate trade association

License requirements

Land description meters and bounds survey system

Rights and interests in land

Forms of ownership

Transfer of title

Recordation and transfer of title

Contracts

Mortgages

Financing and lending practices

Property taxes

Closing and escrows

Appraisal

Insurance

Land use control