Venezuela Property Ownership

In Venezuela property, ownership and transaction information is available from the office of the registrar in the area in which the property is located. There is a principle registry office in the capitol and in each state. In addition, there are numerous subordinate registry offices throughout the country. Principle offices house duplicate documents from subordinate offices. (Martindale 1994.) In addition, transaction information is published by at least one trade association.

Venezuela Transaction Information

There are several commercial sources that repackage and sell publicly available data. One of the most publicly available and well-known real estate trade magazines is Inmobilia (http://www.inmobilia.com). These sources provide up to date information regarding transfers of real property and transaction prices. MLS are widely available through the Internet.

Venezuela Trade Associations

Camara Inmobiliaria de Venezuela (Real Estate Chamber of Venezuela)
Address: Plaza La Castellana. Edf. IASA. Piso 5. Ofc. 502. Chacao. Caracas.Venezuela
Phone: (582) 265-8952
Fax: (582) 261-7321
E-mail: caminmobiliaria@cantv.net
Internet: http://www.camarainmobiliaria.org.ve/

FIABCI
Address: Calle París con New York, Ed. Themys Mari, P. 2, Of. 2-1. Las Mercedes. Caracas, 1060. Venezuela
Phone/fax: (582) 993-5248
Fax: (582) 993-2827
E-mail: fiabcive@viptel.com
Internet: http://www.inmuebles.com/Venezuela/fiabci/
The FIABCI is an international association of real estate professionals based in France.

Camara Venezolana de la Construccion (Venezuelan Chamber of Construction)
Address: Centro Profesional del Este, Piso 13, Ofic. 133, Calle Villaflor, Sabana Grande. Caracas, 1050. Venezuela
Phone: (582) 761-4011 / 761-4012 / 762-7259
E-mail: caracas@cvc.com.ve
Internet: http://www.cvc.com.ve/

Venezuelan Real Estate Managers Chamber
Address: Av. Díaz Moreno, Ed. Oficentro 10B, piso 4, Ofc. 4-D. Valencia, Edo. Carabobo. Venezuela.
Phone: (5841) 59-7206 / 58-9663 / 57-7019
Fax: (5841) 57-0704
E-mail: camincar@viptel.com
Internet: http://www.inmuebles.com/Venezuela/cic

Venezuela Land Rights

Another category of issues is rights and interests in land which includes property taxes, eminent domain, escheat, police powers, and types of estates. Full details regarding Venezuelan practice in this area are not available at this time. However, it is known that property taxes are levied and collected by municipalities. (del Castillo et al, 1994.) In addition, if one dies intestate and no heirs are found, the property will revert to the state. (Martindale 1994.) Finally, Venezuela does recognize both fee simple and leasehold estates.

Venezuela Forms of Ownership

The United States recognizes several forms of ownership which include but are not limited to severalty, tenancy in common, joint tenancy, partnerships, joint ventures, corporations and trusts. The available information on Venezuela covers a form of joint tenancy - community property. Unless otherwise provided by a prenuptial agreement, property of a marriage partnership is considered community property. Property can be considered separate if it was owned prior to the marriage or received by gift or inheritance during the marriage.

Venezuela Real Estate Info Summary

Title & Contracts in Venezuela

Similar to U.S. practices, Venezuela recognizes the transfer of title by the delivery of a deed, by conveyance after death and by adverse possession. All deeds must be written by hand. Typewritten documents from abroad will be recorded only after they have been recopied by hand. A deed must state the names, ages, professions and domiciles of the parties as well at the date of the instrument in words. It must provide a clear description of the property and refer to the deed by which the grantor acquired his/her rights. Two witnesses are required, and the deed must be acknowledged before the registrar. Real consideration must be stated. If fair consideration is not stated then the registrar may declare a value for the property for tax purposes. (Martindale 1994.) There is no dower or curtsey in Venezuela. If a person dies intestate, the ascendant is succeeded by his/her legitimate children and the legitimate descendants of those children. A surviving spouse will have a share equal to that of a child. In the event there are no heirs, the property goes to the nation. (Martindale 1994.) When real property is acquired by an instrument duly recorded, title by prescription arises after 10 years from the date of recording.

In Venezuela recording certain documents which will affect title and the quality of title is required. Documents or encumbrances which must be recorded include mortgages, instruments of conveyance of real estate, instruments creating or canceling easements and other rights in real estate, and leases for more than six years. There is a principle registry office in the capitol and in each state. In addition there are numerous subordinate registry offices throughout the country. Principle offices house duplicate documents from subordinate offices. (Martindale 1994.) Mechanics liens are not recognized in Venezuela, and title insurance is not used.

Contracts for the sale of real property or for an interest in real property must be in writing. In addition to the requirement that contracts be in writing, there are five essential elements for the contract to be valid.

1) The contract must include: first and last name, profession, and address of both parties (buyer and seller); a complete description and address of the real property; selling amount; date and payment plan and description.
2) All parties to the contract must be legally competent.
3) There must be mutual agreement or "a meeting of the minds." A mutual willingness to enter into a contract.
4) The contract must be for a lawful purpose, i.e., not contrary to law.
5) The contract must be supported by consideration, i.e., something of value, be it money, a promise, property or services.
When a contract is breached, the wronged party may choose to accept partial performance, rescind the contract or sue for specific performance or damages or both. It is common for real estate contracts to contain a provision for liquidated damages in case of default by a purchaser and specific performance in cases of default by a seller.

Property Taxes:

Local governments rely on property taxes as their greatest single source of income. Real property taxes support schools, libraries, police and fire departments as well as social service programs, parks and hospitals among many others. Property taxes are ad valorem, or according to the value of property. Local governments, typically counties, assess the value of each parcel of real estate for tax purposes. Each year a lien is placed on each taxable property by the county and is removed when real property taxes are paid. The property tax lien is superior to all other liens on the property.

In cases where a local municipal improvement is necessary that will benefit property owners within a limited area special assessments may be levied against real property.

State and local real property taxes are deducted from personal income when calculating income taxes.

Properties exempt from property tax include government owned property, schools, and most properties owned by and used for religious and charitable organizations.

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 Venezuela.

Venezuela Mortgages & Financing

In this South American country, mortgages have no effect unless they are recorded. They cover all real property and all improvements. There are three kinds of mortgages: legal, judicial and conventional. Legal mortgages are granted by an act of law. A vendor has a legal mortgage on real estate for the unpaid part of the selling price. Co-heirs and partners have a mortgage on common property, and wards have a mortgage on property of their guardians. A judicial mortgage concerns judgment liens which are levied equal to twice the amount of the judgment. Conventional mortgages are created by acts of the parties. Mortgages are ranked according to the date recorded. (Martindale 1994.) Hazard insurance is typically required with a mortgage. (Medina 1996.) Unlike the foreclosure proceedings in the U. S. where the property owner is given liberal redemption periods, the owner of a property in Venezuela is given 4 days to pay a final judgment. If he/she does not, the sale of the property is announced by posters and advertisements. The value of the property is assessed by three persons appointed, one by each party and one by the parties or the court. The property is offered at a public sale. No bid under 1/2 of the value will be accepted. In the event of no sale, the property will be offered for sale again with a lower no-sale threshold. This will continue until the property is sold at not less than 1/3 of the determined value, rented or removed from the market for six months to wait for market conditions to improve. (Martindale 1994.)
There are 16 mortgage banks in Venezuela. These banks provide loans for new construction and improvements. They represent about 7% of the total financial system assets. By the late 1980’s these banks began facing serious liquidity problems because of an inconsistent interest rate policy on the part of the central bank. (Library of Congress 1993.) A sale is consummated between the parties and title passes from the moment the parties manifest their consent in a legal manner. A sale may be absolute or subject to a condition subsequent or precedent. The price may be determined by the parties or a third party. The cost of conveyance is born by the purchaser (with the exception of brokerage commissions). The seller has the obligation of delivery and warranty. The property to be delivered must be described in the contract. A variation in size of 1/20th will allow the buyer to demand a price adjustment.