When deciding to buy a property in Chile, the most common approach is to contact a local real estate agent and let them guide you through the search, negotiations, and paperwork. However, for foreign buyers, this practice can expose them to hidden liabilities, inflated commissions, or even liens on defective property titles. So, what can you do to safely buy a property in Chile as a foreigner?
The answer… Contact a real estate lawyer in Chile, like Becker Abogados. An experienced attorney can identify risks an agent might overlook, negotiate fairer terms, and protect your capital from day one. Having dedicated, and experienced legal counsel can make the difference between a successful investment and a costly disaster.
The Broker’s Goal vs. Your Lawyer’s Duty: A Fundamental Conflict of Interest
Real estate agents in Chile, like anywhere else, are naturally incentivized to close deals quickly. Their priority is connecting buyers and sellers, marketing properties, and closing sales. They earn their commissions when the sale closes, so their goal is to close the transaction quickly and smoothly.
In-depth research into legal taxes, prior claims, water rights, zoning anomalies, inheritance obligations, or compliance issues with foreign funds is rarely conducted. This is not their area of expertise.
By contrast, a real estate attorney, owes you, the client, a fiduciary duty. Their role is protective: They are responsible for uncovering hidden legal risks, negotiating protective contractual clauses, requiring disclosure from the seller, and ensuring the security of all legal issues.
A real estate agent might overlook minor defects in the title or expect them to be resolved later. The attorney is responsible for detecting and announcing them in advance, and might even reject a negotiated settlement. This conflict between the real estate agent’s desire to sell versus the attorney’s responsibility to protect is real and significant.
When you allow a realtor to lead in legal matters, you risk:
- Paying excessive broker commissions (often 2–4 % or more) on deals that later require expensive remediation.
- Overlooking title defects, encumbrances, or unresolved liens.
- Accepting transaction deadlines or clauses that benefit the seller.
- Entering contracts without key contingencies for due diligence.
By hiring a real estate lawyer in Chile first, you shift the power balance. The property search and negotiations become more grounded in legal certainty, and you avoid the trap of “falling in love” with a house before you’ve vetted its full legal condition.
How One Couple Avoided Legal Pitfalls and Excessive Commissions on a $1.2M Property
Consider the real case of Ellenore and her spouse (we anonymize their names for confidentiality). They initially started working with a local realtor in Santiago, drawn to a beautiful property in Lo Barnechea priced at USD 1.2 million. The broker was enthusiastic and confident, but they contacted Becker Abogados from the beginning, and this is how things turned out differently:
- Title Study: Becker’s legal team discovered a latent inheritance claim on part of the land that had not been registered properly. Without this insight, Ellenore would have inherited the litigation risk.
- Negotiated Seller’s Liability: Instead of accepting a simple sale contract, Becker inserted guarantees and escrow for any encumbrances discovered post-closing. The seller agreed to a holdback fund for up to 12 months of claims.
- Reduced Broker Fees: Many foreigners regard Chile realtor fees as fixed. But skilled legal negotiation can reduce them or tie them to specific outcomes. The lawyer renegotiated the broker commission structure tied to milestones rather than fixed percentages, ultimately saving tens of thousands of dollars.
- Guaranty Full Compliance with Foreign Fund Protocols: Because Ellenore was an international investor, Becker structured the investment path—covering fund transfers, compliance, and documentation—to avoid regulatory pitfalls and prevent delays.
- Final Title Registration: Upon closing, Becker oversaw full registration with the “Conservador de Bienes Raíces” (Registrar of Real Estate), ensuring that the property was properly inscribed in their name without residual claims.
Thanks to legal counsel of Becker Abogados, the couple avoided hidden liabilities, broker overcharges, and last-minute surprises, even on a premium property.
The Hidden Risks a Broker Won’t See: Our First Step Is Always a Deep Title Study
In Chile, property rights are formalized through registration in the Registrar of Real Estate (Conservador de Bienes Raíces), and defects often lie deep in prior records. A cornerstone of Becker’s approach is the comprehensive title study, and it’s not something most realtors do or know how to. Key elements of a robust title study include:
- Current Domain Certificate: Confirms the current registered owner and that the title remains valid.
- Certificate of Liens and Prohibitions: Discloses mortgages, liens, prohibitions, or court orders attached to the property.
- Historical Chain of Registration: Examining at least the past 10 years to detect prior claims or restrictions.
- Water Rights (Water Registry): In regions where irrigation or river access is relevant, water rights can be separated from the land. Missing water rights can render land worthless.
- Zoning, Permits, and Urban Planning Compliance: Ensuring that current and planned use complies with municipal and national regulations.
- Border or Security Restrictions: In rare cases, properties near national borders or security zones may face restrictions for foreigners or expat property purchase.
No realtor, however experienced, will typically coordinate all of this or interpret it in light of investment risk. That’s where a real estate lawyer in Chile comes in.
Don’t take unnecessary risks
Thinking of buying a home in Chile? Secure your investment from day one. Schedule a confidential legal consultation with Becker Abogados before you speak to a broker.
By insisting on trusted legal guidance before even contacting a realtor, you sidestep costly mistakes, hidden liabilities, and excessive commissions.
For foreign investors navigating unfamiliar terrain, a real estate lawyer in Chile isn’t an added cost: it’s essential protection.
