A Glossary of Essential Peruvian Real Estate Terms for Expat Buyers

Navigating the real estate landscape in a new country, especially one with a distinct legal framework like Peru, requires a precise understanding of local terminology. As your dedicated real estate broker in Arequipa, we understand the importance of clarity and due diligence for expat buyers. This glossary provides essential Peruvian real estate terms, explained in detail with a focus on practical application and legal implications for foreign investors.

Essential Peruvian Real Estate Terms

1. S.U.N.A.R.P. (Superintendencia Nacional de los Registros Públicos)

   • Translation: National Superintendency of Public Registries.
   • Explanation: This is the cornerstone of property ownership and legal security in Peru. S.U.N.A.R.P. is the official government body responsible for registering all real estate titles, mortgages, liens, and other encumbrances. When a property is registered with S.U.N.A.R.P., it becomes a matter of public record, providing legal certainty to the ownership.
   • Due Diligence: The absolute first step in any property acquisition in Arequipa is to verify the property's registration at S.U.N.A.R.P. by obtaining and reviewing its Partida Registral. This process confirms the true legal owner and reveals any hidden debts or restrictions. Do not proceed with any transaction without this critical verification.

2. Partida Registral

   • Translation: Property Registration File/Folio.
   • Explanation: Every registered property in Peru has a unique Partida Registral number at S.U.N.A.R.P. This digital or physical file contains the entire legal history of the property, including its dimensions, previous owners, sales prices, mortgages (hipotecas), easements (servidumbres), and any legal disputes or encumbrances (cargas y gravámenes).
   • Due Diligence: Requesting a copy of the Partida Registral is paramount. Your lawyer will meticulously review this document to ensure the seller's clear title, the absence of undeclared debts, and that the property's physical description matches its legal registration. Discrepancies here are a major red flag.

3. Notario Público

   • Translation: Public Notary.
   • Explanation: The Notary Public plays a far more significant role in Peru than in many common law countries. They are highly trained legal professionals authorized by the state to authenticate legal documents, contracts, and deeds. All real estate transactions, from the initial Minuta to the final Escritura Pública, must be elevated to a public deed before a Notary to be legally valid and registrable at S.U.N.A.R.P.
   • Process: The Notary ensures all parties are identified, that they understand the terms of the transaction, and that all legal requirements are met. Their seal and signature give the document public faith, making it legally enforceable. Choose a reputable Notary in Arequipa, often recommended by your legal counsel.

4. Escritura Pública

   • Translation: Public Deed.
   • Explanation: This is the definitive legal document that formalizes the transfer of property ownership in Peru. It is prepared and authorized by a Notario Público based on the Minuta (private sales agreement). Once signed by all parties and the Notary, it is then presented to S.U.N.A.R.P. for registration, officially transferring title.
   • Legal Warning: A Minuta alone does not transfer ownership. Only the Escritura Pública, duly registered at S.U.N.A.R.P., provides full legal title and protection. Ensure your full name, passport details (or Carné de Extranjería), and the property's details are precisely correct on this document.

5. Minuta (de Compraventa)

   • Translation: Private Sale Agreement / Draft Deed of Sale.
   • Explanation: This is the initial private contract, typically drafted by a lawyer, that outlines the terms and conditions of the property sale between the buyer and seller. It includes the property's description, sale price, payment schedule, responsibilities of each party, and any specific clauses (e.g., conditions for closing). This document serves as the essential blueprint for the Escritura Pública.
   • Process: Both parties sign the Minuta, often with an initial deposit (arras). Once all conditions are met, this document is then formally elevated to an Escritura Pública by a Notario Público.
   • Practical Tip: Ensure your Minuta is comprehensive and reviewed by your independent Peruvian lawyer. It should protect your interests, especially regarding potential defaults or unexpected issues.

6. Impuesto de Alcabala

   • Translation: Transfer Tax.
   • Explanation: This is a municipal tax levied on the buyer for the transfer of real estate ownership. The current rate is 3% of the sale price. However, the first 10 Unidades Impositivas Tributarias (UIT, Tax Units) are exempt. The UIT value changes annually (for 2024, 1 UIT is S/5,150 PEN, approximately USD $1,350 at an exchange rate of S/3.8 PEN/USD). So, if a property is sold for USD $150,000, the tax would be calculated on USD $150,000 minus 10 UIT (approx. USD $13,500), then 3% of that difference.
   • Responsibility: This tax is always paid by the buyer. It must be paid before the Escritura Pública can be registered at S.U.N.A.R.P.
   • Local Context: In Arequipa, this tax is paid to the Provincial Municipality of Arequipa (Municipalidad Provincial de Arequipa).

7. Impuesto Predial

   • Translation: Property Tax.
   • Explanation: This is an annual municipal property tax levied on the assessed value (valor autovalúo) of the property. Rates typically range from 0.2% to 1% of the assessed value, depending on the property's value tier.
   • Responsibility: The seller is responsible for all Impuesto Predial payments up to the date of the sale. The buyer assumes responsibility from that point forward. Always verify that previous years' Impuesto Predial payments are up to date during due diligence.
   • Local Context: This tax is paid to the district municipality where the property is located (e.g., Yanahuara, Cayma, Arequipa Cercado).

8. Cargas y Gravámenes

   • Translation: Encumbrances and Liens.
   • Explanation: This term refers to any legal burdens or restrictions on a property. These can include mortgages (hipotecas), judicial orders for embargo (embargo), easements (servidumbres), or other legal claims that affect the property's clear title or use.
   • Due Diligence: A thorough review of the Partida Registral by your lawyer will reveal all cargas y gravámenes. It is crucial that the property is free of these or that any existing ones are explicitly dealt with and cleared before purchase. Never assume they will simply "go away."

9. Certificado de Parámetros Urbanísticos y Edificatorios (CPUYE)

   • Translation: Urban and Building Parameters Certificate.
   • Explanation: This official document, issued by the relevant district municipality, specifies the zoning classification (Zonificación) of a property and outlines the specific urbanistic and building regulations applicable to it. This includes maximum height, permissible land use (residential, commercial, mixed), setbacks, and density.
   • Practical Advice: If you plan to build, renovate significantly, or change the use of the property, obtaining this certificate is essential. It tells you what you can and cannot legally do with the land or existing structure.
   • Local Context: In Arequipa, properties within the Historic Center have very strict CPUYE rules due to their protected status (UNESCO World Heritage Site), often limiting external modifications and requiring specific construction materials like sillar.

10. D.N.I. (Documento Nacional de Identidad) / C.E. (Carné de Extranjería) / R.U.C. (Registro Único de Contribuyentes)

    • Explanation:
      • D.N.I.: National Identity Document. The standard ID for Peruvian citizens.
      • C.E.: Foreigner's Card. This is your official residency ID in Peru if you are a resident expat. For property transactions, a valid passport is typically sufficient for non-residents, but a C.E. simplifies many processes.
      • R.U.C.: Unique Taxpayer Registry. Even non-resident foreign investors will likely need an R.U.C. number to handle tax obligations related to property ownership (like Impuesto Predial if you pay directly, or if you rent out the property). It’s obtained from SUNAT (Peruvian Tax Authority).
    • Practical Steps: Ensure all your identification documents are current and readily available. If you plan to live in Peru long-term or engage in any commercial activity, obtaining your C.E. and R.U.C. is highly recommended.

Local Context/Warning: Historic Properties in Arequipa

Arequipa's stunning Historic Center is a UNESCO World Heritage site, famous for its white sillar (volcanic stone) architecture. While acquiring a historic property can be incredibly rewarding, it comes with specific legal and architectural constraints. Properties within the protected zone are subject to strict regulations regarding renovations, modifications, and even color schemes, enforced by the Municipality and the Ministry of Culture. Any proposed changes must be approved, which can be a lengthy process. Due diligence for these properties must include a thorough review of their historical classification and any existing permits or restrictions, beyond the standard S.U.N.A.R.P. checks. Work with architects and lawyers specialized in heritage properties.

⚠️ Legal Notice: Consult a Local Lawyer. This glossary provides general information and should not be considered legal advice. Peruvian real estate law is complex and subject to change. It is absolutely imperative that you engage a qualified, independent Peruvian real estate lawyer for any property transaction in Arequipa. Your lawyer will conduct the necessary due diligence, draft and review all contracts, and ensure your investment is legally secure.

Ready to explore real estate opportunities in Arequipa with confidence? Visit us at ArequipaRealEstate.com for expert guidance and to find your perfect property.