A Guide to the 'Ley 27157' for Regularizing Unregistered Building Constructions

As a licensed Peruvian real estate broker specializing in Arequipa, I often encounter foreign investors and expatriates who are captivated by the stunning properties and vibrant culture of our White City. However, a common and critical challenge many face, often unknowingly, involves properties with unregistered or partially registered constructions. This issue can lead to significant legal complications, impede property sales, and devalue your investment.

Fortunately, Peru offers a robust legal framework, primarily through Ley 27157, to address these situations. This law, fully known as the "Ley de Regularización de Edificaciones, del Procedimiento para la Declaratoria de Fábrica y del Régimen de Unidades Inmobiliarias de Propiedad Exclusiva y de Propiedad Común," is an indispensable tool for formalizing your property's true value and legal status.

This guide, rooted in practical experience and a deep understanding of Peruvian real estate law, will walk you through the process of regularizing unregistered building constructions under Ley 27157, specifically tailored to the Arequipan context.

What is Ley 27157 and Why is it Essential?

Ley 27157 was enacted to provide a legal pathway for property owners to formalize constructions that were built without the necessary municipal permits or without having their "Declaratoria de Fábrica" (Declaration of Construction) registered with the Superintendencia Nacional de los Registros Públicos (SUNARP). It's a pragmatic response to the widespread informal construction practices that have historically occurred across Peru.

In essence, if your property's public record (Partida Registral) at SUNARP does not accurately reflect all existing structures on the land – perhaps an extension was added, a second story built, or the entire house was constructed without formal declaration – then your property has an unregistered construction issue.

Why is Regularization Crucial for Expats and Investors in Arequipa?

Legal Security and Peace of Mind: Unregistered constructions are a ticking time bomb. They expose you to potential municipal fines, demolition orders, and insurmountable legal hurdles. Regularizing ensures your investment is legally sound, protecting you from future disputes.
Increased Property Value: A property with a fully registered "Declaratoria de Fábrica" accurately reflecting all its constructions commands a significantly higher market value. It's an asset that's easier to appraise and, therefore, easier to sell or use as collateral.
Facilitation of Transactions: Without a clear and accurate title, selling your property becomes exceedingly difficult, if not impossible. Banks will not approve mortgages for buyers, and even cash buyers will be deterred by the legal risks. Regularization clears the path for smooth, legal, and profitable transactions.
Access to Financing: Need a loan for further improvements or wish to use your property as collateral? Peruvian banks require a fully registered and accurate "Declaratoria de Fábrica" to assess and secure any financing.
Permit for Future Modifications: You cannot obtain permits for future expansions, renovations, or even major maintenance without a properly registered "Declaratoria de Fábrica" reflecting the existing structures.

It's vital to understand that while Ley 27157 provides the foundational framework, the specific conditions for regularization, especially for simplified procedures for older constructions, are often updated by subsequent laws and decrees. For example, specific deadlines have historically been set for constructions built prior to certain dates (such as December 31, 2016, or later, depending on the current legislation) to qualify for a simplified regularization process. Always confirm the latest applicable deadlines and specific procedural nuances with a local expert, as Peruvian law is dynamic and these special provisions can change.

Step-by-Step Guide to Regularizing Your Construction under Ley 27157

Navigating this process requires precision, patience, and professional guidance. Here’s a detailed breakdown:

Step 1: Initial Assessment and Document Gathering

Before initiating any formal procedures, you need to compile all existing documentation related to your property and understand its current legal status.

Property Title (Escritura Pública): Your public deed, duly registered with SUNARP, proving your ownership.
Identity Documents: Your Carné de Extranjería or valid passport. For Peruvian spouses, their DNI.
Predial Tax Receipts (Autovalúo): Proof of payment of annual property taxes. These documents, issued by the municipality, list the declared construction area. Any discrepancy between this and the actual construction is a red flag.
Previous Plans (if any): Even unapproved or outdated architectural plans can be helpful for your architect.
Utility Bills: Recent water and electricity bills can confirm the property's existence and use.

Step 2: Engage a Qualified Architect or Civil Engineer

This is the most critical step. You cannot proceed without the expertise of a registered Peruvian architect or civil engineer. They will be responsible for preparing the comprehensive technical documentation required. Ensure they are "colegiado" (registered and in good standing with their respective professional association).

Key Deliverables from Your Professional:

Memoria Descriptiva (Descriptive Report): A detailed description of the property, its boundaries, area, existing constructions, materials, and current use.
Planos de Ubicación y Localización (Location and Site Plans): Maps showing the property's exact location, boundaries, and its relationship to surrounding properties and streets.
Planos de Arquitectura (Architectural Plans): Comprehensive floor plans, elevations, and sections that accurately reflect the actual existing construction, including dimensions, distribution, and structural elements.
Planos de Estructuras (Structural Plans): Detailed plans indicating the structural system, foundations, columns, beams, and slabs. Crucial for multi-story buildings or complex designs.
Planos de Instalaciones Eléctricas y Sanitarias (Electrical and Plumbing Plans): Schematics for the property's electrical and water/drainage systems.
Informe Técnico de Verificación (Technical Verification Report): This is the cornerstone document. Signed and stamped by the professional, it certifies that the existing construction meets all relevant municipal and national building codes, safety standards, and structural integrity requirements. This report is what Ley 27157 uses to formalize the construction.

Local Context (Arequipa): When selecting your architect, prioritize those with proven experience in Arequipa. Familiarity with specific municipal ordinances, especially for properties within or near the Zona Monumental (Historic Center), is paramount. Properties in areas like Yanahuara, Cayma, Selva Alegre, or Sachaca, while generally less restrictive than the Historic Center, still adhere to specific district regulations that local architects understand intimately.

Step 3: Notary Public Involvement

Once your architect has prepared and signed all the technical documents, they must be presented to a Notary Public. The Notary's role is to formalize the "Acta de Verificación" (Verification Act).

The Notary will review the architect's Informe Técnico de Verificación and associated plans. They ensure that all legal requirements have been met and that the documents are valid and properly executed.
The Acta de Verificación is a public instrument that legally attests to the existence and characteristics of the construction based on the architect's findings. This formal act is indispensable for SUNARP registration.

Estimated Costs: Notary fees in Arequipa can vary based on the complexity and declared value of the construction. Expect fees to range from S/ 800 to S/ 3,000+ (approximately $220 - $800+ USD). This is separate from the architect's fees.

Step 4: Registration with SUNARP

With the notarized "Acta de Verificación" and all supporting technical plans in hand, the Notary Public will submit these documents directly to SUNARP for registration.

Review Process: SUNARP's registrars will meticulously review the submitted documentation against your property's existing public record. They will ensure there are no legal impediments or discrepancies.
Declaratoria de Fábrica Registration: If everything is in order, SUNARP will register the "Declaratoria de Fábrica" in your property's public record (Partida Registral). This legally acknowledges all existing constructions on your land.
Independización (if applicable): If your property involves multiple independent units (e.g., apartments, commercial spaces), the process might also include "Independización," creating separate public records for each unit.

Timeline: SUNARP typically takes between 7 to 15 working days for the registration process, assuming no observations or requests for clarification. Any observations will extend this timeline.

SUNARP Fees: These are calculated based on the declared value of the construction being registered. A common rate is 3 per mille (0.3%) of the value, plus fixed administrative fees. For example, a construction valued at $100,000 might incur SUNARP fees of around S/ 1,000 - S/ 1,500 ($270-$400 USD).

Special Considerations and Local Context/Warnings (Arequipa)

Historic Properties (Zona Monumental): Arequipa's UNESCO World Heritage Historic Center has extremely strict regulations. Any regularization or modification of properties within this zone, or even within certain buffer zones, requires prior approval from the Dirección Desconcentrada de Cultura de Arequipa (DDC Arequipa), in addition to municipal permits. This adds significant complexity, time, and cost. Your architect must have specialized experience in historic preservation.
Municipal Fines: While Ley 27157 offers a path to regularization, if the municipality discovers your unregistered construction before you initiate the process, you could face fines. Proactive regularization often mitigates these, but it's not a guarantee against all penalties.
Property Tax (Impuesto Predial) Impact: Regularizing your construction will increase the official cadastral value (autovalúo) of your property. This is a direct consequence of enhancing your property's legal and market value, and it will result in higher annual Impuesto Predial payments to the municipality. Factor this into your long-term investment calculations.
"Declaratoria de Fábrica" vs. "Conformidad de Obra": Understand the distinction. Ley 27157 helps you register a "Declaratoria de Fábrica" for existing constructions, often those built without permits. A "Conformidad de Obra" (Certificate of Completion) is issued by the municipality for new constructions that did follow all permit processes from the outset.
Deadlines and Amendments: Always verify the latest deadlines and specific procedural nuances, as Peruvian law can be dynamic. While Ley 27157 provides the general framework, specific deadlines for simplified procedures are often updated by subsequent decrees.

Estimated Costs and Timelines (Arequipa Specifics)

Architect/Engineer Fees: Highly variable based on the size, complexity, and age of the construction. For a typical residential property, expect S/ 3,000 - S/ 10,000+ (approx. $800 - $2,700+ USD). Properties in the Zona Monumental will command higher fees due to specialized requirements.
Notary Fees: S/ 800 - S/ 3,000+ ($220 - $800+ USD).
SUNARP Fees: S/ 500 - S/ 2,000+ ($135 - $540+ USD), depending on the declared construction value.
Municipal Fines (if applicable): Can range from a few hundred soles to several thousand, depending on the severity and duration of non-compliance.
Total Time: From initial architect engagement to final SUNARP registration, a realistic minimum is 2-4 months for straightforward cases. Complex properties, especially those requiring DDC Arequipa approval, can easily take 6 months to over a year.

Safety Checks

While "tools" in the traditional sense don't apply, ensuring the integrity of the process is paramount:

Verify Professionals: Always confirm that your chosen architect/engineer is actively "colegiado" (registered and in good standing) with their professional association (e.g., Colegio de Arquitectos del Perú (CAP) or Colegio de Ingenieros del Perú (CIP)). You can often verify their status online through the respective college's website.
Legitimate Notary: Ensure the Notary Public is officially registered and licensed. The Superintendencia Nacional de los Registros Públicos (SUNARP) and the Colegio de Notarios del Perú maintain lists of active notaries.
Documentation: Keep meticulous records of all communications, signed contracts, receipts, and copies of all submitted documents at every stage.
Payment Schedules: Do not pay large sums upfront. Agree on clear payment milestones tied to specific deliverables (e.g., x% upon plan completion, x% upon notarization, x% upon SUNARP registration).

⚠️ Legal Notice: Consult a Local Lawyer.

This guide is intended for informational purposes only and does not constitute legal advice. Peruvian real estate law is complex, nuanced, and subject to frequent updates. The specifics of your property and situation will require individualized legal counsel. A qualified Peruvian real estate lawyer is an indispensable partner for navigating the intricacies of Ley 27157, especially for foreign investors, complex properties, or in cases involving potential disputes. Do not proceed with any legal or property transaction without engaging an independent, experienced legal professional in Peru.

Regularizing your unregistered construction under Ley 27157 is not merely a bureaucratic task; it's an essential investment in the security, value, and future of your Arequipan property. It transforms an informal asset into a fully legitimate and marketable one, offering you true peace of mind.

Need assistance navigating the intricacies of property regularization in Arequipa? Contact ArequipaRealEstate.com today. Our team of experienced brokers and legal partners can connect you with the right professionals to ensure your investment is secure and fully compliant with Peruvian law.