Obtain the Property Registry Certificate (CRI), the literal certificate of the selling company and legal representative’s powers
Agency: Property Registry (Superintendencia Nacional de los Registros Publicos – SUNARP)
The property registry certificate (CRI) contains the description of the property, the list of owners during the last 10 years, and the current charges or encumbrances over the property. When issued, a literal certificate is attached. The literal certificate of the selling company proves its existence and indicates the date of incorporation and insolvency, among other information as the articles of incorporation and the composition of the company’s board. The certificate of the legal representative’s powers proves that the seller has the faculties to dispose of the property and could act on behalf of the company.
Any natural or legal person can request the issuance of these certificates at the Registry Office or online through the Servicio de Publicidad Registral en Línea (SPRL) https://www.sunarp.gob.pe/seccion/servicios/ details / 0 / a3.html. The online certificates have the same legal validity as those issued at the registry, except for the CRI. Although the CRI could be requested online, the user must go to personally to the Registry since the document requires a double signature.
The expedition of the CRI takes an average of 3 days, while the literal certificate of the selling company and the legal representative’s powers take an average of 1 day. To obtain the certificates, you must fill out an application form and pay the corresponding fees.
The cost of the certificates is updated every year, according to the UIT.
Time and cost: 3 days, PEN 118.02 (1.61% of 1 UIT (Property Registry Certificate) + 0.12% of 1 UIT per page – around 5 pages – (literal certificate of the selling company) + 0.60% of 1 UIT (legal representative’s powers))
A lawyer conducts the study of the titles and drafts the sales contract
Agency: Lawyer
Although it is not mandatory by law, for a property transaction under the case study assumptions, it’s a common practice to hire a lawyer. A lawyer conducts a study of the past titles and the history of the owners to carry out the transaction. The lawyer will draft the sale contract that has to be presented before the notary, once signed by the parties.
The documents required by the lawyer for the study of the title and the drafting of the sale contract are the following:
- Property Registry Certificate (CRI) (obtained in procedure 1);
- Legal representative’s powers (obtained in procedure 1);
- Literal certificate of the registration of the selling company (obtained in procedure 1)
- Original and copy of the national identification documents (DNI) of the legal representatives;
- Affidavit of self-assessment (formularios Hoja Resumen (HR) y Predio Urbano (PU));
- Proof of payment of property tax for the entire year in which the transfer occurs;
- Proof of payment of municipal taxes;
- Consult the Unique Taxpayer Registry (RUC) of the selling company on the SUNAT website http://www.sunat.gob.pe/.
Time and cost: 2 days, PEN 5,475.53 (PEN 5.145 (around 0,5% of the property value for lawyer fees))
Payment of Transfer tax (“Impuesto de Alcabala”)
Agency: Tax Service Administration (Servicio de Administración Tributaria de la Municipalidad Metropolitana de Lima – SAT).
The Transfer tax (Alcabala) must be paid at the Tax Service Administration (Servicio de Administración Tributaria, SAT). The tax agency SAT is connected with the notaries through the internet (https://www.sat.gob.pe/TF/default.asp) to facilitate the payment of municipal taxes (including the transfer tax called Alcabala). The payment can be made on behalf of a client by the notary instantaneously, and no physical visits or wait time is involved in this process. Nevertheless, the payment mentioned above may also be executed in Notaries with debit and credit card, or bank transfers since late 2008, due to notaries have been allowed to connect to SAT system through satellite connection. As soon as the transaction clears, the notary prints the receipt and hands it to the client.
The payment can be made at https://www.sat.gob.pe/TF/default.asp. This reform started back in 2005 under the name “NotarioSAT” to enable the electronic payment and processing of Alcabala. In mid-2009, 71 out of 104 notaries in Lima participated in this program. The program is web-based and easy to access.
The alcabala tax and its applicable rate are regulated by Chapter II (Articles 21-29) of Supreme Decree 156-2004-EF (Consolidated Text-TUO of the Municipal Taxation Law).
Additionally, the seller must pay income tax on capital gains (not included in the case study) before the National Superintendency of Customs and Tax Administration (SUNAT), as established in Supreme Decree 179-2004- EF (Income Tax Law) and its subsequent amendments.
Proof of the payment of the alcabala and rent taxes is a requirement for the notary to raise the purchase and sale deed to a public deed and request the registration of the sale to the Public Registries.
Time and cost: Less than 1 day (online), PEN 31,593.16 (3% of the property value if the property excess 10 UIT. The first 10 UIT of the property value is not affected by Alcabala tax.)
The notary public executes and notarizes the public deed
Agency: Notary Public
The notary executes the public deed based on the sales contract drafted by the lawyer and signed by the parties. The notary will require all documents previously obtained by the parties plus (i) Financial payment method, (ii) Proof of payment of the alcabala tax; (iii) Proof of payment of income tax.
As a preventive measure, the buyer can authorize the notary to extend a blocking request at the Public Registry. This measure protects the purchaser from any third-party filings before the public deed is officially filed for registration. The blocking of the Registry expires after 60 working days as of registration and is usually requested in cases of more complex transactions.
The participation of the notary in the preparation of the public deed is mandatory by law following the Supreme Decree 010-2010-JUS (Single Text – TUO of the Regulation of Legislative Decree 1049, Legislative Decree of Notaries).
Notary costs are not regulated, and therefore the rate may vary from one notary to another (between 0.1-0.25% of property value)
Time and cost: 1 day, PEN 1,916.43 (0.1-0.25% of property value (Notary’s fees))
The public deed is filed for registration with the Property Registry
Agency: Property Registry (Superintendencia Nacional de los Registros Publicos – SUNARP)
The notary who carries out this act or one of his authorized employees can file the public deed with the property registry.
If the Notary is not in the same jurisdiction of the Property Register, he may engage, by request of the parties and under their exclusive responsibility, a Notary with the same Notarial Jurisdiction as that of the Property Register.
The Public Registry (SUNARP) allows all owners to know at any time the status of the transaction at https://enlinea.sunarp.gob.pe/sunarpweb/ pages / access / frmTitulos.faces.
According to the Regulation Public Registry Resolution N° 032-2010 of February 25, 2010, in the cases of simple transfers (“compra-venta simples”) the Public Registry must record it in a maximum of 48 hours at no extra cost; According to the said Resolution in order to be considered as a simple transfer, the operation must fulfilled the following requirements: (i) the operation must be related about a unique parcel properly registered, (ii) the procedure can only involves one electronic entry, and (iii) the seller must appear as owner in the Public Registry.
When the client submits the transfer to SUNARP, SUNARP checks and verifies if the sale falls into this category. It then assigns the work to the relevant “seccion” (composed of one registrador, 2 assistants and one apprentice). Some “secciones” are specifically assigned to this type of transactions. Also, standard minutes have been published on the website to promote their use. The legal framework of Peru does not allow providing incentives for employees. Regular registration of the public deed in the Property Registry takes a maximum of 35 working days, but during the first 7 days of this term, the Public Registry is obliged to issue a notice regarding the situation of the public deed filed for registration.
Time and cost: 2 days, PEN 3,319.34 (0.81% of 1 UIT + 1.5/1000 of the property value for properties up to PEN 35.000 or 3/1000 of the property value for properties exceding PEN 35.000)
Update of the owner information in the Registry of the Municipality
Agency: Tax Service Administration (Servicio de Administración Tributaria de la Municipalidad Metropolitana de Lima – SAT).
The buyer must go to the municipality SAT to update the change of ownership.
The change of ownership must be updated at the Municipality SAT. This registration is necessary so that taxes and fees for such property are issued in the name of the new owner. To carry out the process, the buyer must submit:
- National identification document (DNI) of the owner (previous or current) or its legal representative;
- Legal representative’s powers;
- Original (only for exhibition) and copy of the supporting document that certifies the transfer of the property.
The deadline to make this declaration is the last business day of the month following the execution of the transfer.
The procedure is regulated by subsection b of Art. 14 of Supreme Decree 156-2004-EF (Single Text – TUO of the Municipal Tax Law).
Time and cost: 1 day, no charge
