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Paying for property/moving funds into Chile

Posted: Mon Jan 07, 2019 6:09 am
by onehappycloud
Hi, I'm new here and thanks for letting me in:)

I have a question, apologies if I overlooked any previous answers.

I’m buying a property in Chile and have faced a problem of transferring the funds into Chile.
The property agencies (Engel & Völkers) take care of everything else apart from the transactions. Now, I don't live in Chile (yet) and don't really need any back account. Just want to buy property. My bank confirms that I can do the transaction online and its easy.
The buying procedure in Chile is quite straight forward until the final point of when two parts are exchanging the legal papers/funds at the notary.
I do not wish to transfer the funds to the property owner until he signs the ownership to me. And the owner will not sign anything until he has the money. It seems that an Escrow account could be an option but I did not find anyone using it in Chile. I can not open a back account in Chile to move the funds to myself, as I don’t have a Chilean ID (never actually thought of it).
I found the house and it seems the owner will accept my offer. I have the funds.
(I have given a 'Poder' to someone in Chile, through the Notario to sign the administrative things of the property, such as Post firma de Promesa, etc)

I there any way to do it?
Grateful for any advice!

Kind regards,
/T

Re: Paying for property/moving funds into Chile

Posted: Mon Jan 07, 2019 7:48 am
by admin
ooooo, there is so much to unpack in that post.

let's start with the basics.

Do you have an attorney?

Your attorney, not the seller's, not the real estate agent, AN ATTORNEY THAT WORKS FOR YOU?

I am going to assume not, as your attorney should have explained all of this in detail.

Did you do a titile search? Do you understand the title search?

who is this person you gave a POA to? how long have you known them? is the POA properly limited?

That is all before even getting to transfering the money problem.

The seller get's the money when the title is fully registered, NOT when they sign the buy /sale agreement, or you could end-up with niether money nor property.

by the way, do you have a RUT number?

There is no such thing as an escrow company in chile.

In chile, Funds are placed in a bank counter check, then "escrowed" at the notary public with instruction for either the release to the seller or return to you when certain conditions are met. most importantly the seller does not get the funds until the title is fully registered in your name.


This is where the funds transfer problem comes in, for most foreigners. someone needs to have a checking account to recieve the funds, to convert to a bank counter check. That also means, typicaly complying with money laundering laws, when transfering a house worth of funds.

Re: Paying for property/moving funds into Chile

Posted: Mon Jan 07, 2019 10:56 am
by admin
answered this, then found your email. Sent you an email with more information.

Re: Paying for property/moving funds into Chile

Posted: Mon Jan 07, 2019 11:25 am
by Zenth
If you're from the USA, don't think of a notary in Chile as someone with a stamp working at the UPS store or the AAA. A Chilean notary is part legal clerk/paralegal, escrow agent, and government official. It's a profession.

Re: Paying for property/moving funds into Chile

Posted: Mon Jan 07, 2019 11:29 am
by Gloria
Zenth wrote:
Mon Jan 07, 2019 11:25 am
........ don't think of a notary in Chile as someone with a stamp working at the UPS store or the AAA.
:lol: :lol:

Re: Paying for property/moving funds into Chile

Posted: Mon Jan 07, 2019 7:28 pm
by onehappycloud
Thats a very knowledgeable reply, thank you.

Yes, I do have a lowyer, but not in Chile. He explained the general rules, hence, the PoA is properly written and limited to a specific property, specific tasks and specific price limit. I did get a RUT, as I realised its a must. I know about the title search and got the prices the local lowers take to do that.
So, I am at the point of money transfer.

The question is who owns that *bank counter check, then "escrowed" at the notary public with instruction for either the release to the seller or return to you when certain conditions are met. most importantly the seller does not get the funds until the title is fully registered in your name*? Must be a big trustworthy company or a bank itself, but they don't offer services like that in Chile. For the money laundering laws, the banks cannot open general 'orphans' accounts to receive the funds from elsewhere, even from the top trustworthy and reliable countries.

You are right in that 'someone needs to have a checking account to recieve the funds, to convert to a bank counter check. That also means, typicaly complying with money laundering laws, when transferring a house worth of funds'.
In my case it's easy, as my bank only allows to transfer the funds that have a 'secured source' and who are of course asking for some evidence where it goes to (buying property).
There must be, as in many international transactions, a clearly defined agreement between the buyer/seller: the seller signs a paper stating a full property registration with a condition that within xx days the money would be transferred. If not, the agreement is not valid. With a clausal of not being able to withdraw the statement within the same number or xx days. That would give both parties a guarantee.
Am I thinking wrong?
/T

Re: Paying for property/moving funds into Chile

Posted: Mon Jan 07, 2019 7:52 pm
by admin
yes.

Re: Paying for property/moving funds into Chile

Posted: Mon Jan 07, 2019 8:14 pm
by onehappycloud
Ok, we continue via email. Thank you again!

Re: Paying for property/moving funds into Chile

Posted: Mon Jan 07, 2019 10:15 pm
by at46
If you were in Chile, you could transfer to yourself via Banco de Chile transit account and get the money as a vale vista (certified cheque) or in cash. Also, via a fondo mutuo.

Re: Paying for property/moving funds into Chile

Posted: Mon Jan 07, 2019 10:37 pm
by onehappycloud
I don’t have an account in Chile. And it seems impossible to open one without a valid local ID

Re: Paying for property/moving funds into Chile

Posted: Tue Jan 08, 2019 8:58 am
by Gloria
onehappycloud wrote:
Mon Jan 07, 2019 10:37 pm
I don’t have an account in Chile. And it seems impossible to open one without a valid local ID
Where´s your common sense in all this? You don´t live in Chile, don´t have a bank account or have an ID, why bother to try to buy a property or even thinking of moving funds.....are you on drugs? What a joke!....and we are all laughing :lol:

Re: Paying for property/moving funds into Chile

Posted: Tue Jan 08, 2019 9:02 am
by onehappycloud
Hahaha... have you heard of ppl having properties in other countries they live in?