what's the deal with $USD in argentina?

[Bajo_cero2]

To the OP. I would advise caution against paying "too much" (more than 3-4 months) up-front, even though many short-term 6-month furnished apartments ask for 6-months rent prepaid up-front. I stupidly prepaid 12 months to secure a better price, but I then lost "leverage" on the owner to make repairs. Yes, "shit happens" with any apartment. And yes, one can enlist an attorney to pressure the owner to do things, but it's costly, time-consuming, and a hassle. I'm no expert, but I wish I had kept some of the cash (for future rent) in-hand.

To pay more than one month in advance is illegal. So, the best strategy, instead of asking him to make the repairs, is to send a carta documento telling him that you are going to ask the money back through Court. He will fix anything at once. Regards

 

[Bajo_cero2]

Correct me if I'm wrong, but weren't some -- not all -- of the articles from the Convertibility Law "abolished?" This is a copy of the updated law from the Banco Central in 2007. Has it changed since?

According to the 2007 version of the law (unless it was taken off the books entirely afterward), Article 10 (essential for Resolution 144/93 to remain in effect ) remains the same as it was when the Convertibility Law was passed in 1991.

Thus, if Article 10 is still on the books and Resolution 144/93 remains in effect (I see no resolution that "repeals" it), then demanding dollars for rent in contracts agreed upon by both parties is perfectly legal.

Am I wrong?

Yes.

The resolutions of the BC only regulates the way banks works.

A low hierarchy regulation (hierarchy: Contitution, Federal laws, state laws, administrative regulations) that is reglamentary of Federal law cannot remain valid is the principal law is abolished.

The article 10 you mentioned prohibits indexation clauses.

 

[joelie]

My husband and I were able to rent an unfurnished place WITHOUT a garantia by paying six months up front in US$ (this was about a year ago). It was a two-year contract, but we only wanted to say there for six months (apparently for local, unfurnished rentals there is no such thing as a 6 month contract, they all have to be two years. I've heard different ideas about this, so I really don't know what's legal or not, just what can be done, which is probably more relevant!). At the end of the six months we had to pay a 'fine' of one month's rent from breaking the contract (which was written in the contract - and for us it was worth it at the time). We had a very good relationship with the people we were renting from (probably coz we were so naive ;o) - no seriously, we have visited their house just for mate, and got on quite well with them) and didn't have any problems. There were some flaws with the apartment but nothing major so we didn't worry too much about it - and usually we would just deal with the portero for those problems anyway, not the owner. I think a lot depends on your attitude and your standards...and your expectations. Don't expect too much, and you won't be disappointed. )

Anyway - good luck. )

Oh yeah; I don't remember if our contract was in dollars or pesos, but I think when we got to a point of paying month by month, we had no problems paying in pesos (same for paying the 'fine' at the end).

 

[Lucas]

^ Hecha la ley, hecha la trampa.

 

[scarface]

Ahhhh - just remembered the ignore feature & breathed a sigh of relief.

To the OP, short-term rental contracts are written in dollars. If you bring a lot with you, you actually will probably have the ability to negotiate a price break to your benefit since dollars are now almost impossible to come by and a landlord would probably be very happy to have a tenant with dollars in hand. You can also exchange at a later date and certainly other expats are always looking for dollars.

After reading through this thread I think it is safe to say that Bajo Cero knows what he is talking about and that you don't.
Your attempt to prove that it is legal to demand dollars in payment of rental contracts because it is commonly done is absurd. That landlords continue to seek dollars from unwary tourists is zero evidence what the law is. It is, however, a commentary on the greed of some landlords.

 

[solerboy]

After reading through this thread I think it is safe to say that Bajo Cero knows what he is talking about and that you don't.
Your attempt to prove that it is legal to demand dollars in payment of rental contracts because it is commonly done is absurd. That landlords continue to seek dollars from unwary tourists is zero evidence what the law is. It is, however, a commentary on the greed of some landlords.

It really is a totally ludicrous statement to say that it is greed that drives landlords to demand dollars.

The peso is a volotile currency. Why should any business person not seek to protect their interest in any way they can.

I dont know Argentine law, but I studied business law in the UK.

A clear component of any contract is agreement. If someone offers a contract and you dont like the terms of the contract then you are perfectly entitled to decline to enter into thar contract. If after entering into that contract, your personal circumstances change (IE you can no longer get dollars at the price you would like), then this is your personal circumstance and should be of no concern to the other party in the contract.


To call landlords greedy is both wrong and patronising.

 

[TheBlackHand]

Owners will just increase the rent 20% if the rent is going to be paid in Pesos. Problem solved.

 

[scarface]

It really is a totally ludicrous statement to say that it is greed that drives landlords to demand dollars.

The peso is a volotile currency. Why should any business person not seek to protect their interest in any way they can.
I dont know Argentine law, but I studied business law in the UK.

A clear component of any contract is agreement. If someone offers a contract and you dont like the terms of the contract then you are perfectly entitled to decline to enter into thar contract. If after entering into that contract, your personal circumstances change (IE you can no longer get dollars at the price you would like), then this is your personal circumstance and should be of no concern to the other party in the contract.


To call landlords greedy is both wrong and patronising.

Your admission that you are ignorant of AR law doesnt excuse you from reading the entire thread before making accusations that others' statements are ludicrous. If you are ignorant of the law and you seek to do business here you would do well to consult a lawyer.
The AR law (text of which is cited above by Bajo_Cero) specifically provides that a contract provision reciting that payment must be made in foreign currency (not legal tender) is void. That means it is not legally enforceable. It is irrelevant that the parties previously agreed to the term of payment. That agreement is not allowed if either party later objects for any or no reason. A landlord can be forced to acceept pesos ( and at the legal rate of exchange).

If a busiinessman KNOWINGLY enters into an unenforceable agreement hoping that the other side is ignorant of the law and that he will be able to get dollars at a low price OR that he could not otherwise get, then I consider him greedy. His conduct is morally reprehensible.
If he doesn't enter such a contract knowingly, he may not be greedy, but it's an indication he's just ignorant and/or stupid and/or a bad businessman. To think otherwise is ....ludicrous.

 

[solerboy]

Your admission that you are ignorant of AR law doesnt excuse you from reading the entire thread before making accusations that others' statements are ludicrous. If you are ignorant of the law and you seek to do business here you would do well to consult a lawyer.
The AR law (text of which is cited above by Bajo_Cero) specifically provides that a contract provision reciting that payment must be made in foreign currency (not legal tender) is void. That means it is not legally enforceable. It is irrelevant that the parties previously agreed to the term of payment. That agreement is not allowed if either party later objects for any or no reason. A landlord can be forced to acceept pesos ( and at the legal rate of exchange).

If a busiinessman KNOWINGLY enters into an unenforceable agreement hoping that the other side is ignorant of the law and that he will be able to get dollars at a low price OR that he could not otherwise get, then I consider him greedy. His conduct is morally reprehensible.
If he doesn't enter such a contract knowingly, he may not be greedy, but it's an indication he's just ignorant and/or stupid and/or a bad businessman. To think otherwise is ....ludicrous.

I looked at the definition of the meaning of greedy and found the following

"Excessively desirous of acquiring or possessing, especially wishing to possess more than what one needs or deserves. ".

In order to determin whether the landlord is being greedy you would need to know all the costs and legal agreements surrounding the property being rented.

For instance, Does the landlord make an excessive profit ?, and also, does the landlord have expenses which they themselves have to pay in dollars, such as a mortgage or a higher landlord ?

Unless you have these facts you cant possibly say that the landlord is being greedy.

I never disagreed with your knowledge of Argentine law, but the word greedy is not relevant to whether they prefer to be paid in dollars or pesos.

 

[TheBlackHand]

No need to argue further. Problem solved.

Owners will just increase the rent 20% if the rent is going to be paid in Pesos. Problem solved.