# STEPS OF PROCESS OF BUYING OR SELLING A PROPERTY IN URUGUAY
Although each transaction has its particularities we describe below the steps involved in the process:
- The buyer chooses a property and agrees on the price.
- The buyer’s notary makes a preliminary contract (contrato preliminar) we denominate boleto de reserva in which all the transaction conditions are described. They are:a) Indentification of the buyer and seller parties who are bound to buy and sell.b) The property is indentified with its number of padron, surface, floorplans, etc.
c) The price and method of payment are established. The method of payment can be either in full, or in installments, with or without guarantees.
d) The buyer makes a deposit to the notary that is generally 10% of the agreed price. The seller gives the property documents to the notary.
e) A maximum period of time to finalize the contract is established. Within that timeframe, the notary will verify that the legal situation of ownership, tax and cadastral status are in perfect condition. If this is not in perfect conditions the contract is voided, deposit is returned and the legal documents of ownership are returned.
f) A fine is established in case that either part doesn’t comply (usually 10%).
- Once the boleto de reserva is signed, the notary:
Studies the titles and requests the ownership documents, cadastral and municipal certificates and other documents that prove the property and owners are in perfect conditions, without obligations, seizures, mortgages and liens. Then, the notary will create the compraventa contract that will be signed at the moment of payment and release of the property unless it was agreed on payment in installments. The document of ownership is inscribed in the registry of properties and this makes the owner legal.
# COSTS OF BUYING OR SELLING PROPERTY IN URUGUAY
Costs of buying property in Uruguay
Costs can vary from 8 to 9%
Real Estate Agent fees = 3% +IVA (22%) = 3,66%- Public Notary fees (including Montepios, FONASA and IRPF) = 3% + IVA = %3,66
- Inscriptions, Certificates and other registries = US$300 to US$800 approximately
- Taxes for Transfer of Ownership (ITP) = 2% of the fiscal value. The fiscal value is often a lot less than the market value.
Costs of selling a property in Uruguay
- Real Estate Agent fees = 3% +IVA (22%) = 3,66%
- Taxes for Transfer of Ownership (ITP) = 2% of the fiscal value. The fiscal value is often a lot less than the market value.
- Profit Tax. Is the 12% of the difference between the purchase value and the selling value. In case of obtaining the property before July 2007, the tax will be the lesser amount between 1.8% of the selling price or 12% of the difference between the purchase value and the selling value.
