A Checklist of Questions to Ask the Seller Before Making an Offer on an Arequipa Property

A Checklist of Questions to Ask the Seller Before Making an Offer on an Arequipa Property.

A Checklist of Questions to Ask the Seller Before Making an Offer on an Arequipa Property

As a foreign investor or expat considering purchasing real estate in Arequipa, Peru, the adage "knowledge is power" transforms into "due diligence is security." Entering the Peruvian property market without a comprehensive understanding of a property's history, legal standing, and physical condition can expose you to significant financial and legal risks. This authoritative guide, crafted by ArequipaRealEstate.com, outlines a crucial checklist of questions you must ask the seller before making an offer, ensuring you are equipped with the foundational information necessary for a safe and informed investment in the "Ciudad Blanca."

This initial inquiry is your first line of defense, designed to uncover potential red flags and guide your subsequent legal and technical verifications.

Section 1: Property Ownership & Legal Status – The Foundation

The first and most critical area of inquiry concerns the property's legal ownership and any encumbrances that might affect its transferability.

  1. Who is (are) the registered owner(s) of the property?

    • Purpose: To verify that the person or entity selling the property is legally entitled to do so. This is fundamental.
    • Safety Check: Request identification documents (DNI for Peruvian nationals, Passport for foreign nationals) for individual sellers. If it’s a company, ask for its RUC number and the Poderes (Powers of Attorney) of the legal representative.
    • Follow-up: This information will be cross-referenced with the Partida Registral (Registration Entry) from S.U.N.A.R.P. (Superintendencia Nacional de los Registros PĂșblicos) – Peru's public registries – by your real estate lawyer.

  2. Are there any existing encumbrances, liens, mortgages, or legal disputes on the property?

    • Purpose: To identify any financial burdens or legal claims against the property that could complicate or even prevent a clear title transfer.
    • Safety Check: Insist on a Certificado de GravĂĄmenes y Cargas (Certificate of Liens and Encumbrances) from S.U.N.A.R.P. This official document is essential and will show any registered debts, mortgages, or restrictions.
    • Local Context: In Arequipa, as in all of Peru, a property should ideally be free of cargas (charges) and gravĂĄmenes (encumbrances) for a straightforward transaction.

  3. Is the property fully registered with S.U.N.A.R.P.? What is its Partida Registral number?

    • Purpose: Unregistered properties are extremely risky and should generally be avoided by foreign investors due to the complexities of establishing clear title. The Partida Registral is the property's unique legal identification in the public records.
    • Necessary Tool: The Partida Registral number is your key to accessing the property's complete legal history at S.U.N.A.R.P.

  4. If the seller is acting on behalf of the owner, do they possess a valid Poder (Power of Attorney)?

    • Purpose: To ensure the representative has the legal authority to sell the property.
    • Safety Check: The Poder must be granted via a Public Deed (Escritura PĂșblica), registered with S.U.N.A.R.P., and explicitly grant the power to sell the specific property. Generic powers of attorney are insufficient. Your lawyer must review this carefully.

Section 2: Property Documentation & Permitting – Verifying Legality

Beyond ownership, verifying the legality of the property's construction and its official documentation is paramount.

  1. Do you have the Copia Certificada del Testimonio de Escritura PĂșblica (Certified Copy of the Public Deed) of the property?

    • Purpose: This is the original legal document establishing ownership for the current seller.
    • Safety Check: While your lawyer and the Notary will independently verify the chain of title through S.U.N.A.R.P., having the seller provide their Copia Certificada del Testimonio from their acquisition demonstrates they have their fundamental ownership document in order.

  2. Is the Declaratoria de FĂĄbrica (Declaration of Construction) registered and up-to-date with S.U.N.A.R.P. and the Municipalidad Provincial de Arequipa?

    • Purpose: This document legalizes the physical construction. It describes the built area, number of floors, and distribution. Any additions or modifications must be reflected here.
    • Local Warning: Many older Arequipa properties, or those with informal additions, may have a Declaratoria de FĂĄbrica that doesn't match the current physical reality. This is a significant red flag, as it means parts of the property are "illegal" and will need to be formalized (a costly and time-consuming process) before you can fully register your ownership or get a loan.

  3. Do you have Licencias de ConstrucciĂłn (Building Permits) for any recent renovations or additions?

    • Purpose: To ensure all construction work complied with municipal regulations.
    • Local Context/Warning: For properties within Arequipa's historic center (Centro HistĂłrico), declared a UNESCO World Heritage site, any construction, renovation, or even significant maintenance requires special permits from the Ministry of Culture (DirecciĂłn Desconcentrada de Cultura de Arequipa) in addition to municipal permits. Failing to have these can lead to fines, forced demolition, or serious delays in future projects.

  4. Can you provide the Certificado de ParĂĄmetros UrbanĂ­sticos y Edificatorios (Urbanistic and Building Parameters Certificate)?

    • Purpose: This document, issued by the municipality, specifies the property's zoning, permitted uses (residential, commercial, mixed), maximum buildable height, and other urbanistic regulations applicable to the lot.
    • Practical Use: Crucial for understanding what you can legally do with the property, especially if you plan future expansions, modifications, or a change of use.

Section 3: Financial & Tax Status – Avoiding Hidden Costs

Outstanding financial obligations can quickly become your problem if not identified before the sale.

  1. Are all Impuesto Predial (Property Taxes) paid up-to-date with the Municipalidad Provincial de Arequipa?

    • Purpose: To ensure no outstanding municipal taxes are owed.
    • Safety Check: Request copies of the Recibos de Pago (payment receipts) for the last five years. Any unpaid taxes will become your responsibility upon purchase if not settled by the seller.
    • Verifiable Detail: Property taxes in Peru are typically paid quarterly or annually, based on the Valor AutoavalĂșo (municipal tax assessment value).

  2. Are all utility bills (electricity, water, sanitation, internet, gas) paid up-to-date?

    • Purpose: To avoid inheriting unpaid utility debts, which can sometimes be tied to the property address.
    • Safety Check: Request copies of recent bills showing "saldo cero" (zero balance) from local providers like SEAL (electricity) and SEDAPAR (water/sanitation).

  3. Are there any outstanding maintenance fees or assessments for common areas (if applicable, e.g., apartment building)?

    • Purpose: For condominiums or apartment buildings, understand any shared costs and ensure the seller is current on their obligations to the building administration.

  4. What is the Valor AutoavalĂșo (Municipal Tax Assessment Value) of the property?

    • Purpose: This value is used by the municipality to calculate annual Impuesto Predial and also plays a critical role in the Alcabala (transfer tax).
    • Verifiable Detail: The Alcabala is a transfer tax, typically 3% of the sales price or the Valor AutoavalĂșo (whichever is higher), after a deduction of 10 UITs (Unidades Impositivas Tributarias). (1 UIT is S/ 5,150 in 2024, subject to annual adjustment). This deduction is substantial and significantly reduces the taxable base for most residential transactions.

Section 4: Property Condition & History – Understanding Your Investment

Beyond legalities, the physical condition of the property directly impacts its value and your future expenses.

  1. How old is the property? When were major renovations, repairs, or additions made?

    • Purpose: To gauge potential wear and tear and identify the age of critical systems.

  2. Are there any known structural issues (e.g., significant cracks, water leaks, subsidence)?

    • Purpose: To identify potential costly repairs.
    • Local Context/Warning: Arequipa is situated in a high seismic zone. Understanding the property's age and construction quality is crucial. A professional structural engineer's inspection is highly recommended, especially for older adobe or sillar (white volcanic stone) constructions, which are common in neighborhoods like the Centro HistĂłrico or Yanahuara.

  3. What is the condition of the electrical and plumbing systems? When were they last updated?

    • Purpose: Older Peruvian properties often have outdated systems that may not meet modern safety standards or handle contemporary electrical loads, requiring costly upgrades.

  4. Have there been any pest infestations (e.g., termites, woodworm) or issues with the roof/drainage?

    • Purpose: To identify potential damage and future maintenance needs. Arequipa's relatively dry climate minimizes some of these risks compared to other regions, but they are not absent.

  5. What utilities are connected (electricity, water, sewage, internet, gas) and who are the providers?

    • Purpose: To confirm basic services and understand the infrastructure.
    • Practical Use: Confirming the type of hot water system (solar, electric, gas) is useful, as solar water heaters are very popular and efficient in sunny Arequipa.

Local Context/Warnings for Arequipa Real Estate:

  • S.U.N.A.R.P. Verification is Non-Negotiable: Never solely rely on a seller's verbal answers or documents provided by them. All legal and registration information must be independently verified by your Peruvian real estate lawyer through S.U.N.A.R.P.
  • Notary Public's Critical Role: In Peru, the Notary Public (Notario PĂșblico) is not just a witness; they are a public official responsible for ensuring the legality of the transaction, verifying identities, and formalizing the Escritura PĂșblica (Public Deed). Choose a reputable Notary who performs thorough due diligence.
  • Informal Constructions (Construcciones sin Licencia): Be extremely wary of properties where additions or modifications have been made without municipal permits or without updating the Declaratoria de FĂĄbrica in S.U.N.A.R.P. Formalizing these can be an expensive, time-consuming bureaucratic nightmare, potentially impacting your property's value, ability to obtain financing, and future resale.
  • Historic Properties in Arequipa: As mentioned, properties in the Centro HistĂłrico or those declared Patrimonio Cultural (Cultural Heritage) are subject to strict regulations from the Ministry of Culture (DirecciĂłn Desconcentrada de Cultura de Arequipa). Any modifications require special permits, which can limit development potential and architectural changes. Ensure the seller discloses any existing restrictions.
  • "Poderes" (Powers of Attorney): If dealing with a seller's representative, your lawyer must meticulously review the Poder to ensure it is valid, registered, and explicitly grants the power to sell the specific property under appropriate terms. Fraudulent Poderes are a known risk that rigorous legal verification can mitigate.

Step-by-Step Action Plan:

  1. Compile Your List: Use this checklist as your primary tool during initial discussions.
  2. Engage the Seller: Ask these questions clearly and directly, requesting detailed answers.
  3. Request Documentation: Insist on physical or digital copies of all relevant documents mentioned (Public Deed, tax receipts, utility bills, Declaratoria de FĂĄbrica, permits, Certificado de GravĂĄmenes y Cargas, Certificado de ParĂĄmetros UrbanĂ­sticos).
  4. Do Not Rely on Answers Alone: Treat the seller's responses as initial information. Never proceed without independent verification by your chosen legal and technical professionals.
  5. Engage Professionals Early: Before making any offer, secure the services of an experienced Peruvian real estate lawyer and, for condition assessment, a qualified architect or engineer specializing in local construction.

This rigorous approach, especially for foreign investors, is not just a recommendation—it's a fundamental requirement for a secure and successful property acquisition in Arequipa. Well-established neighborhoods like Yanahuara, Cayma, and Vallecito, known for their modern infrastructure and residential appeal, often present clearer documentation, but due diligence remains universally essential across all districts.

⚠ Legal Notice: Consult a Local Lawyer.

The information provided in this article is for general informational purposes only and does not constitute legal, financial, or real estate advice. Real estate laws and regulations in Peru can be complex and are subject to change. It is imperative that you consult with a qualified and experienced Peruvian real estate lawyer and other relevant professionals (e.g., accountants, structural engineers) before making any investment decisions or signing any documents related to property acquisition in Arequipa, Peru. ArequipaRealEstate.com is not responsible for any actions taken based on the information presented herein.

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