Rural land purchase minimum hectare law?

by Taylor
(Maricopa, AZ, USA)

Buying Rural Property in Peru

Buying Rural Property in Peru

Hi,


I would like to purchase between .25 and .5 hectares of rural jungle land from an property owner in Northern Peru.

Can I do this legally?

Is there a minimum purchase cost amount or land size minimum purchase laws?

It would cost $2,000 or under.

Thank you.

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Rural Land Purchase in Peru
by: David

Hi Taylor,

Buying some jungle property sounds great. We love the jungle!

However, the question of purchasing property legally in Peru is really complex and involves a number of factors.

We ourselves have decided never to buy property in the Latinamerican countries we have lived in (Ecuador, Bolivia, Nicaragua, and Peru).

That personal decision has been from observation of a tangled series of problems that people we have known have run into.

First of all, does the owner really have legal papers of ownership? There are likely 5 documents he needs to present to prove ownership. That will vary depending on the department and local authorities, so you would have to find out from them what documents prove legal ownership of the land. It is not rare to buy property, build on it, and then have someone show up with legal papers proving the property is not yours.

Second, in regard to the size of the property, each municipality has laws depending on what the property is zoned for. The closest general law the seems to apply to size of rural property is that there can only be one dwelling per hectare.

Also, a person with only a tourist visa has to apply for special permission to buy property in Peru. Without that, you will not own the property.

You definitely need to contact a lawyer before spending any money at all. Please see the page: http://www.expatperu.com/buying-property-in-peru.php

Our suggestion, which makes things much easier is: Make a written contract with the owner of the property that you will rent the piece of land for a specified period of time but not pay any actual money - you build what you want on it. At the end of that period of time, the land and building revert to the owner

During the time of the initial contract, you do not pay any rent, since the building you have constructed becomes the payment in lieu of rent - and you can actually be better off.

Example: (money figures are for illustration and only suggest actual prices in Peru)

You can afford S/. 500 soles per month if you were going to rent. You want a nice small home that is built to your tastes that will cost you S/. 15,000 soles (approx. $4,500)to build. The construction cost is equal to paying 30 months of rent.

You write the contract for 42 months. You build to your taste. You get to live in a much better house then you would find on the market spending less than you would have on rent and then have another year free of rent.

You have not lost money. The chances are way less of getting ripped off.

There are variations of this type of deal.

However... even with this type of contract, you need to find a very reputable lawyer or at least a notary public (notaria) to legalize your contract or other documents.

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