Documenting "free & clear" property, with exemption from taxes

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MortgageGuy
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Joined: Fri Jul 28, 2017 4:18 pm

Documenting "free & clear" property, with exemption from taxes

Post by MortgageGuy » Mon Jul 31, 2017 2:07 pm

Hi All,

I tried the search function, but wasn't able to find answers to my specific questions. I wasn't sure if this was a "real estate" or a "legal" question, but from glancing through topics in their respective forums, I figured my questions are more applicable to the legal section of AllChile.

I'm a mortgage broker in the USA. I have a client who's originally from Santiago. I needed to include his divorce decree in his document folder so that I could prove to underwriting what his monthly child support and alimony payments were.

However, the divorce decree reveals that my client was awarded a property in Chile. Normally, foreign properties wouldn't be brought up when somebody is purchasing a home in the USA, but it's specifically mentioned within the divorce decree, so now it's a factor in my client's new purchase in the USA. Specifically, the underwriter will want to make sure that my client's Chilean property is not an additional liability, which we'd have to factor in to the client's debt-to-income ratio.

Essentially, I need to prove that the Chilean property:

A) Has no mortgage on it
B) Is exempt from property taxes

It's my understanding that homeowner insurance isn't really a customary thing in Chile, so that's easy enough to explain. However, how do I prove there is no mortgage on the property and that it's also exempt from property taxes? My client says he has no documentation on the property here in the States, as it's a small family home that he inherited a few years ago, and hasn't been back to Chile since then. So any/all documentation about the property is actually IN Chile, IN the home itself. The only document he actually has here is the "title"...can I use that to somehow look up mortgage/tax info?

Is there another way to perhaps prove that the home has no mortgage and is exempt from property taxes rather than the client flying down to Chile? I'm hoping that since he has the title to the home, that we can somehow leverage that into getting us the information we need.

Any advice/guidance is appreciated! :)

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Re: Documenting "free & clear" property, with exemption from taxes

Post by admin » Mon Jul 31, 2017 4:20 pm

Send us an email. We can provide the documention you are looking for.

We have run in to this before in divorces in the states and other countries.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

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