Selling Property Question

[sergio]

Has anyone sold a property with the buyer transferring money from their foreign account to the seller's foreign account? Isn't this risky since there is a gap between signing the escritura and the arrival of the money in the seller's account?

 

[GS_Dirtboy]

We do it all the time. There is no gap as the escritura (deed) is written so that it becomes effective (transferable) once the deposit is made and confirmed by the escribano. If it is done correctly there will be no risk to the seller.

GS

 

[sergio]

I have just been informed by a lawyer however that a clause making it effective once the money has been received is in fact not secure and any problem would result in a terrible legal problem. The lawyer is well versed in this and deals with international clients. Apparently there are seldom problems but there are no guarantees.....

 

[garryl]

Actually, the transaction is safer this way.

 

[sergio]

Actually, the transaction is safer this way.

Please explain.

 

[garryl]

Please explain.

Getting paid outside Argentina is much easier. It's riskier trying to move $ around, and into Argentina, not to mention the trouble.
I have never heard of any problem doing that. The buyer/seller in us or Europe is very careful, maybe more careful than the buyer/seller in Argentina.
They will not rob the property from you, I mean the law is more strict, you are dealing with an easier buyer.
It's a good thing. A foreign buyer who can transfer purchase fund to your foreign acc is considered a good thing. The buyer feels a lot less stressful too.
Imagine two Yankees buy and sell from each other for an apt in Argentina, they both feel better and easier.

 

[sergio]

The lawyer I talked to who is expert on this subject said that there is a chance of fraud. There is a gap between signing the deed and receiving the money. While there may be few incidents of fraud, the potential exists and dealing with it in court would be hell. I know this procedure is done and everyone has his / her own level of tolerance. Seems scary to me.

Two "Yankees" (not a flattering term when used here - like "Sudaca" in my view) have no reason to trust each other just because of their nationality. Things could go wrong and then how do you deal with it -- who has legal jurisdiction? The US? Argentina? What a disaster that would be.

 

[garryl]

The lawyer I talked to who is expert on this subject said that there is a chance of fraud. There is a gap between signing the deed and receiving the money. While there may be few incidents of fraud, the potential exists and dealing with it in court would be hell. I know this procedure is done and everyone has his / her own level of tolerance. Seems scary to me.

Two "Yankees" (not a flattering term when used here - like "Sudaca" in my view) have no reason to trust each other just because of their nationality. Things could go wrong and then how do you deal with it -- who has legal jurisdiction? The US? Argentina? What a disaster that would be.

There are a lot more could go wrong if a foreign buyer has to wire his money to an unknown place/person in order for the $ to reach Argentina, which was what I did. My real estate agent told me to wire it to someone in Hong Kong, how do you like to do that ? There is a chance that your lawyer does not do the recording (properly) after everyone is paid. Nothing is 100% safe.

 

[GS_Dirtboy]

The deed is written as a "deed of receipt." The deed is not executable unless the money is verified received by the escribano.