How to Buy a Home in Chile

Chile, with its diverse landscapes and stable economy, is an attractive destination for expats from around the world. Whether you're looking to settle in the bustling city of Santiago or the picturesque coastal towns, buying a home in Chile can be a rewarding investment. However, the process can be complex, especially for foreigners. This guide aims to provide you with key information on how to navigate the Chilean real estate market, from finding houses for sale to understanding the legal requirements and potential pitfalls.

How do I find houses for sale in Chile?

There are several ways to find houses for sale in Chile. Online property portals are a popular choice, offering a wide range of listings across the country. Websites like Portalinmobiliario, Chilepropiedades, and Yapo.cl are commonly used. Local newspapers also have real estate sections. Additionally, hiring a real estate agent can be beneficial as they have extensive knowledge of the local market and can help negotiate prices.

Are there restrictions on foreigners owning property in Chile?

Chile is relatively open to foreign property ownership. There are no specific restrictions on foreigners buying property, except for certain areas near the borders due to national security reasons. However, foreigners must obtain a tax identification number (RUT) before they can purchase property. This can be obtained from the Servicio de Impuestos Internos (SII), the Chilean tax authority.

Does Chile have an MLS type system?

Chile does not have a Multiple Listing Service (MLS) like in the United States. Each real estate agency maintains its own database of properties. Therefore, it's important to work with a reputable agent or use multiple sources to ensure you're seeing a wide range of available properties.

Do brokers have licenses and how do I know if they are licensed?

Real estate brokers in Chile are not required to have a license. However, many belong to professional associations such as the Chilean Chamber of Real Estate (CChC). Membership in such organizations can be a sign of professionalism and adherence to ethical standards. Always do your due diligence when choosing a broker, including asking for references and checking their reputation.

What documents are required when buying a home?

Key documents required when buying a home in Chile include the title deed, a certificate of property taxes, a non-mortgage certificate, and a non-prohibition certificate. The latter two can be obtained from the Real Estate Registrar. It's also important to check the zoning certificate to ensure the property's intended use is permitted.

Do I need a lawyer when buying a home in Chile?

While not mandatory, it's highly recommended to hire a lawyer when buying property in Chile. A lawyer can help verify the property's legal status, ensure all necessary documents are in order, and assist with the closing process. Legal fees can vary, but typically range from 1% to 3% of the property's purchase price.

Do people typically buy a property with all cash or take out a mortgage?

Both options are common in Chile. While some buyers pay in cash, many opt for a mortgage. Mortgages in Chile can cover up to 80% of the property's value and have terms of up to 30 years. Note that as a foreigner, getting a mortgage might be more challenging and require a larger down payment.

Are there inspections that take place, and if so what is that process like?

Property inspections are not mandatory in Chile, but they are highly recommended. They can reveal potential issues with the property that might not be immediately apparent. The process typically involves hiring a professional inspector who will examine the property and provide a detailed report.

What are some of the pitfalls to avoid when buying property in Chile?

Common pitfalls include not thoroughly checking the property's legal status, not having the property inspected, and not fully understanding the terms of the sale. It's also important to be aware of potential language barriers and cultural differences in the negotiation process. Working with a local real estate professional and lawyer can help avoid these issues.