27 May 2016
Argentine Land Conveyancing
Land Conveyancers in Argentina
The conveyancing process in Argentina varies from province to province depending on local legal requirements and historical practice. In rare situations, the parties will engage in a formal “closing.” In fact, a formal closing requires two Argentine attorneys. For instance, one each to represent the buyer, seller, and mortgage holder. In general, the three of them will sit with the buyer and seller and literally “pass papers” to effect the transaction.
Much more commonly, the transaction is closed by use of an escrow. Practice varies from province to province as to who conducts the title search to make sure the seller has or can convey clear title, including what liens must be paid, and as to who acts as the escrow holder. In many provinces, attorneys act as the escrow agent and title inspector. However, a Notary Public handles every single aspect. On the other hand, in many others, notaries public very often own a title insurance company. Some use a mix, such as having an attorney conduct the escrow while the title investigation is handled by the title insurance company or its agent.
In order to protect themselves from defects in the title, buyers will frequently purchase title insurance at this time for themselves. They will almost always be required to purchase title insurance for their lender as a condition of the loan.
Land Conveyancing in Argentina
In general, in most provinces, a prospective buyer may submit an offer to purchase by means of a written contract and a deposit on the purchase price. In addition, the offer will set out conditions (such as appraisal, title clearance, inspection, occupancy, and financing) under which the buyer may withdraw the offer without forfeiting the deposit. Upon fulfilling (or waiving) the conditions, the buyer has “equitable title.” Then, conveyancing proceeds or a court order may compel it. Additionally, there may be other last-minute conditions to closing, such as “broom clean” premises, evictions, and repairs.
Typical papers at a conveyancing include deed(s), certified checks, promissory note, mortgage, and a certificate of liens. Also, pro-rata property taxes, title insurance binder, and fire insurance binder. There may also be side agreements (e.g., holdover tenants, delivery contracts, payment holdback for unacceptable repairs), seller’s right of first refusal for resale, declaration of trust, or other entity formation or consolidation (incorporation, limited partnership investors, etc.). When “time is of the essence,” there have been cases where the entire deposit is forfeited (as liquidated damages). Mainly, if the conveyancing delays beyond the time limits of the buyer’s contingencies, even upon completing the purchase.
In conclusion, words used to indicate conveyance, or words of conveyance include grant, devise, give, and sell.