GIPE Newsletter (Nº 24.137) January, 9th 2025

SELLING PROPERTY:

PRECAUTIONS BEFORE AN EXCHANGE

A real estate exchange is a contract by which a property is exchanged instead of paying for it with money. It is common for an individual to transfer a plot of land to a developer in exchange for one or more future homes, although it can also involve the exchange of homes already built. It is an alternative to buying and selling that avoids resorting to external financing, but it is a complex contract that requires detailed planning and regulation of its conditions.

Key aspects to consider:

Requirements of the work:

• Detail specific characteristics of the final home, such as dimensions, distribution, equipment and quality of materials.
• Include the building permit and quality report as an annex.
• Establish specific deadlines for the start and end of the work, with penalties for delays, and define how the home will be delivered.
  

Non-compliance and guarantees:

Agree on solutions in case of non-compliance, such as:

• Compensation for differences between what was agreed and what was delivered.
• Termination of the contract, recovering the land and the work carried out, with compensation to the developer.
• Obligation of the builder to buy the land at a fair price.
  

Demand guarantees to ensure compliance with the contract, such as bank guarantees, personal guarantees, or mortgages on other assets.

Exhaustive contractual regulation and the requirement of guarantees are essential to protect the rights of the parties.

LEASES:

FINES FOR ABUSIVE CLAUSES

Consumer authorities have begun to sanction real estate agencies for imposing abusive commissions on tenants, especially related to management and contract formalization costs. With the Law for the Right to Housing, the Urban Leasing Law (LAU) was modified, establishing that said costs are the responsibility of the landlord, not the tenant.

Important details:

Tenant protection:

• The rule seeks to protect tenants as consumers, preventing them from paying for services they have not requested, since it is usually the landlord who entrusts the management to the real estate agency.
• However, tenants must pay for specific services that they have requested directly, such as advice or additional procedures.
  

Scope:

• The regulation applies only to residential leases, regulated by the LAU.
• It does not affect rentals of premises, luxury, seasonal or room rentals.

This regulation aims to balance the responsibilities between the parties and sanction practices contrary to consumer rights.

GIPE: Together we will be stronger