can anyone explaine me the "dólar informal" ex-change rate

[Bajo_cero2]

1. If I understood you correctly a new contract requiring a short term tenant to pay rent in US $ is void. Presumably the tenant can simply proffer the rental amount converted into pesos at the official rate. Is that correct?

Yes. However it is not automatic because the landlord will be very upset about that. If you have a 6 month contract with 4 month left, then the following negociation might happend:

Tenant) I am going to pay in pesos at the official rate.
Landlord) No way, you pay at 5 pesos or in dollars or you go home.
Tenant) We have a contract, if you don t accept the payment in pesos I am going to deposit at Court.
The landlord might try to kick you out. However you can call police.

So, to deal with the landlord in this way is a huge mistake. It is better to send a carta documento compeling to accept the payment in pesos. Then he cannot just go there when you aren t and change the key because you can enforce your re entry to the appartment and to prosecute him.

This is a stressful situation that not everybody might want to deal with. So, the best strategy is to use these arguments to negociate a fair contract in pesos for a new appartment.

Remember this: a landlord who rent to foreigner charges almost double the price they can get from an Argentine. So, they are also trying to get paid 5 pesos per dollar? It is almost 20 percent more. I am sure you can get a contract in pesos because you are paying a lot extra for a temporary rent. I pay 1400 pesos expensas included for a 2 ambientes appartment one block from Plaza Italia while I have seen ugly studios for 600 dollars. If you pay 5 pesos per dollar it means 3000 pesos. However, My appartment is too unexpensible, 2000 for what I got is more razonable.

2. If correct, is it only the case since the new financial laws went into effect at end of October? Or has that always been the law? In other words, if a contract calling for payment in US dollars was entered into before Oct, 2011 is it valid for the landlord to require payment in dollars nowadays?

No, it is like that since 7th of january 2002 when the Public Emergency and Exchange System Reform Act was enacted, law 25.561.

3. I presume sales of real estate may be negotiated and paid in $. Is this correct?
Thanks in advance.

More or less. It is difficult to explain, I ll do my best. Imagine a typycal movie about a trial. You have the prosecutor, the defendant as equals and the judge.

That s the way that works a real state selling-buying contract. Buyer and seller are both strong and they can negociate whatever they want. For example, to pay in dollars, pesos, half/half, to pay with a boat, whatever.

It means that you can offer pesos but I doubt that somebody is going to accept them and you cannout force then to accept them.

But when you rent an apartment for housing there are not two equals. The landlord is strong and the tenant is weak. That's why the law seeks to compensate this weakness giving advantages to the tenant or avoiding abuse from landlords, for example, prohibiting the contracts in dollars.

Is it clear?

 

[scarface]

More or less. When you say it is not "automatic" , you make it less clear. Of course 2 opposing parties can negotiate if they both choose to. The point is that a landlord cannot require a tenant to pay rent ( short term or long term rental) in dollars even if the contract recites payment must be in dollars. If the contract says rent is required to be paid in dollars, the tenant is within his rights to refuse and to offer pesos (presumably an amount based upon the official rate of exchange).
The procedure you mention, sending a "carta documento" compelling the landlord to accept the rent in pesos (converted from dollars at the official rate) sounds like a 'proffer" or legal tender, that is, a bona fide offer of the correct legal rent payment which accepted or not, satisfies the ternant's legal obligation to pay rent and thus prevents the landlord from claiming non-payment as a reason to evict.
Your recommendations about negotiating are surplusage. As I said above of course one may choose to negotiate, but it is good to negotiate from strength knowing your full legal rights.
As far as purchase, I understand dollars may legally be required.
Thanks again.

 

[Bajo_cero2]

More or less. When you say it is not "automatic" , you make it less clear. Of course 2 opposing parties can negotiate if they both choose to. The point is that a landlord cannot require a tenant to pay rent ( short term or long term rental) in dollars even if the contract recites payment must be in dollars. If the contract says rent is required to be paid in dollars, the tenant is within his rights to refuse and to offer pesos (presumably an amount based upon the official rate of exchange).
The procedure you mention, sending a "carta documento" compelling the landlord to accept the rent in pesos (converted from dollars at the official rate) sounds like a 'proffer" or legal tender, that is, a bona fide offer of the correct legal rent payment which accepted or not, satisfies the ternant's legal obligation to pay rent and thus prevents the landlord from claiming non-payment as a reason to evict.
Your recommendations about negotiating are surplusage. As I said above of course one may choose to negotiate, but it is good to negotiate from strength knowing your full legal rights.
As far as purchase, I understand dollars may legally be required.
Thanks again.

I clarify myself. If you send a carta documento you are protected against illegal eviction. In this country eviction is only possible through Court. If the landlord change the keys while you are not there, you can prosecute him and to get in back.

If he denied to receive the payment in pesos, then you open a bank account with a Court order and the payment is done there. He cannot evict you while the judge decides.

Regarding to buy real state in dollars, they cannot force you to pay in dollars however they can decide to sell only in dollars.

Today I read at Clarin about high end appartments in Olivos close to the river and the constructor offer them in pesos. It is simple, they start accepting pesos or they go to bankruptcy in a busisness where they are doing very well, it makes no sense.

The big deal here is to do not sign contracts in dollars.

Regards

 

[lela]

hello all, i was informed today by my land lady that she would have to charge my rent with the current 4.75 "dólar informal" ex-change rate.

hello all, thank you for all the comments, it worked well out! my land lady did agree to a "regular" dollar exchange and as well we are OK with the electricity / gas bills!
thanks for all the info provided!!! L