Common pitfalls to avoid when viewing properties in Arequipa
Common pitfalls to avoid when viewing properties in Arequipa.
Common Pitfalls to Avoid When Viewing Properties in Arequipa
As a licensed Peruvian real estate broker specializing in Arequipa, I've guided countless foreign investors and expats through the property acquisition journey. While Arequipa offers unparalleled beauty, a vibrant culture, and attractive investment opportunities, the property viewing process, if not approached with diligence, can lead to significant complications. This guide outlines the most common pitfalls and provides practical, legally sound strategies to navigate them effectively.
Your viewing is more than just an aesthetic appraisal; it's a critical phase of due diligence. Approach each viewing as a meticulous investigation.
Phase 1: Pre-Viewing Due Diligence – Laying the Groundwork
Before you even step foot on a property, crucial groundwork must be laid. Skipping this phase is a common and costly mistake.
Pitfall 1: Trusting Verbal Assurances Over Documented Reality
Often, sellers or their representatives provide information verbally about a property's status. While good faith is presumed, legal reality is dictated by official documentation.
Step-by-Step Instruction:
- Request Key Documents Pre-Viewing: Before scheduling a physical visit, request copies of essential property documents.
- Initial Verification: Conduct an initial review of these documents.
Necessary Tools:
- Internet access for initial research.
- Email for document exchange.
Peruvian Context & Safety Check:
- S.U.N.A.R.P. Partida Registral (Property Registration Record): This is the single most important document. It provides official details on:
- Ownership: Who legally owns the property, as registered with the National Superintendency of Public Registries (S.U.N.A.R.P.).
- Encumbrances: Any liens, mortgages, easements, or judicial embargoes affecting the property.
- Area and Boundaries: Official registered dimensions and legal description.
- History: Previous owners and transaction records.
- Warning: A property that isn't properly registered with S.U.N.A.R.P., or has discrepancies in its Partida Registral, is a massive red flag. Do not proceed without clear and updated registration.
- Declaratoria de Fábrica (Declaration of Construction) / Título de Fábrica (Construction Title): This document confirms that the existing construction (house, apartment building) is legally registered with the municipality and S.U.N.A.R.P., and corresponds to approved building plans. Unregistered constructions are common but problematic for legal certainty and future transactions.
- Hoja de Resumen (HR) and Predio Urbano (PU) (Municipal Property Tax Forms): These municipal documents confirm the property's declared value for tax purposes and its classification. They also indicate if annual property taxes (Impuesto Predial) are up to date. Be aware that any outstanding property taxes transfer with the property to the new owner.
Pitfall 2: Neglecting Neighborhood and Zoning Research
A property's value and suitability are heavily influenced by its surroundings and legal zoning.
Step-by-Step Instruction:
- Research Zoning Regulations: Understand if the area is zoned for residential, commercial, or mixed-use. This determines what can legally be built or operated on the property. You can obtain this information from the Municipality of Arequipa's Urban Development department.
- Evaluate Local Amenities & Infrastructure: Assess proximity to schools, hospitals, markets, public transport (such as the Sistema Integrado de Transporte - SIT), and green spaces.
- Investigate Future Development Plans: Check with the Municipality of Arequipa for any planned road expansions, infrastructure projects, or zoning changes that could impact the property's value or quality of life in the area.
Peruvian Context & Safety Check:
- Arequipa's Diverse Neighborhoods: Areas like Yanahuara, Cayma, and Cerro Colorado are highly sought after for their family-friendly environments, green spaces, and typically larger homes, often commanding higher prices. The Historic Center, while a UNESCO World Heritage site and incredibly beautiful, comes with strict renovation rules and limitations due to its protected status. Areas like Miraflores or parts of Mariano Melgar might offer more affordable options but with different infrastructure and amenities.
- Seismic Considerations: Arequipa is in an active seismic zone. While modern construction adheres to strict national building codes (Norma Técnica E.030 Diseño Sismorresistente), older properties or those with unpermitted additions may not meet these standards. Research the seismic history and general soil conditions of specific micro-zones if possible.
- Noise and Traffic: Areas near major avenues (e.g., Ejército, La Marina, Goyeneche) or commercial zones can experience significant noise and traffic, especially during peak hours. It is advisable to visit properties at different times of the day to get a realistic sense of the environment.
Phase 2: On-Site Viewing – What to Scrutinize
This is where your detective hat truly comes on. Beyond aesthetic appeal, you're looking for structural integrity, functional systems, and compliance.
Pitfall 3: Overlooking Structural and Infrastructural Integrity
Many issues are hidden beneath a fresh coat of paint. A quick walk-through is insufficient.
Step-by-Step Instruction:
- Exterior Inspection:
- Roofs: Look for missing tiles, signs of water damage (stains on eaves or walls), or poor drainage. Arequipa's intense sun and occasional heavy rains can be harsh on roofing materials.
- Sillar Facade: Arequipa's unique white volcanic rock (sillar) requires specific maintenance. Check for cracks, erosion, crumbling mortar, or poor repair work.
- Walls: Check for large cracks (hairline cracks are common, but major ones indicate structural issues), dampness, or peeling paint. Pay attention to walls facing the elements.
- Foundations: Look for any visible signs of subsidence, major cracking, or differential settlement, especially in properties built on slopes.
- Interior Inspection:
- Dampness/Mold: Check ceilings, corners, and behind furniture for signs of moisture, which can indicate leaks, poor ventilation, or rising damp.
- Electrical System: Are there modern circuit breakers (a tablero eléctrico with llaves térmicas)? Are outlets grounded (tomacorrientes polarizados)? Older Peruvian homes often have outdated and potentially unsafe electrical wiring, which can be a significant hazard and require costly upgrades.
- Agua y Desagüe (Water and Drainage): Test all faucets, showers, and toilets. Check water pressure and look for visible leaks under sinks and around toilets. Ensure proper drainage in sinks, showers, and exterior areas. Check for signs of sewage backup or foul odors.
- Flooring: Look for unevenness, missing tiles, buckling, or signs of water damage, especially near bathrooms and kitchens.
- Doors and Windows: Check for proper function, security (locks, sturdy frames), and signs of drafts. Are they aluminum, wood, or PVC?
- Pests: Look for signs of termites (comején), rodents, or other common household pests, especially in wooden structures or dark, damp areas.
Necessary Tools:
- Flashlight: Essential for inspecting dark corners, under sinks, attics, and basements.
- Measuring Tape: For verifying room dimensions against your needs or registered plans.
- Camera/Smartphone: Take detailed photos and videos of everything – good features and potential issues.
- Pen and Notepad: To jot down observations, questions, and areas for further investigation.
Pitfall 4: Ignoring the Legal and Zoning Fit
What you see might not always be what's legally permitted.
Step-by-Step Instruction:
- Compare Physical Layout to Plans: If available, meticulously compare the property's physical layout and construction to the Declaratoria de Fábrica or other registered plans. Any discrepancies are crucial.
- Confirm Permitted Use: Ensure the property's current use (e.g., residential home) aligns with its official zoning and permits. Converting a residential property to commercial use, or vice-versa, requires municipal approval and can be complex.
Arequipa Context & Safety Check:
- Historic Properties: If viewing a property in the Historic Center (a UNESCO World Heritage site), be aware that any modifications, even minor ones (e.g., changing a window, painting a facade, or internal structural changes), require specific approval from the Dirección Desconcentrada de Cultura de Arequipa. This process can be lengthy, restrictive, and requires specialized architects. Ensure any existing renovations on a historic property were properly permitted.
- Unregistered Additions: It's common in Peru for homeowners to build ampliaciones (additions, expansions, or significant modifications) without officially registering them with the municipality or updating their Declaratoria de Fábrica and S.U.N.A.R.P. records. These unregistered constructions create a discrepancy between the physical reality and the legal documentation. This will cause delays and complications during the purchase process, potentially requiring the seller to formalize the addition (a process called saneamiento) before the sale can proceed, or requiring you, the buyer, to assume this responsibility (which we strongly advise against). Always ensure the physical reality matches the legal documentation.
Pitfall 5: Failing to Question Utility Connections and Permitting
Understanding the utility setup and history is vital for future living costs and legal standing.
Step-by-Step Instruction:
- Ask for Utility Bills: Request recent electricity (from SEAL - Servicio Eléctrico Arequipa Limitada), water (from SEDAPAR - Servicio de Agua Potable y Alcantarillado de Arequipa), and, if applicable, natural gas (from Quavii) bills. This helps assess typical consumption and confirms active, legal connections.
- Inquire About Permits: If any recent major renovations, additions, or demolitions have been made, ask to see the corresponding municipal permits (licencias de construcción o demolición).
Peruvian Context & Safety Check:
- Outstanding Debts: Ensure there are no outstanding utility debts tied to the property. While these debts are generally personal to the previous owner and do not directly transfer with the property, they can cause service interruptions if not resolved by the seller prior to your occupancy. Always verify current payment status.
- Illegal Connections: Be wary of properties with suspicious utility connections, unmetered services, or unusually low bills, as this could indicate illegal hookups (conexiones clandestinas) that would be your responsibility to rectify with significant fines and service disruption if discovered.
Phase 3: Post-Viewing Follow-Up – Consolidating Your Findings
The viewing doesn't end when you leave the property.
Pitfall 6: Rushing the Decision or Negotiations
Impulsive decisions are rarely good investments.
Step-by-Step Instruction:
- Consolidate Notes and Photos: Immediately after viewing, review all your observations systematically. Organize photos and notes, perhaps creating a pros and cons list.
- Consult Professionals: Discuss your findings with your legal counsel (an independent Peruvian real estate lawyer) and, if necessary, a trusted architect or civil engineer for a more detailed assessment, especially if structural or permit issues are suspected.
- Do Not Be Pressured: Real estate is a significant investment. Take your time to make an informed decision. A reputable broker will respect your need for due diligence.
Arequipa Local Context/Warning: The Unregistered "Ampliación" and Sillar Maintenance
As noted earlier, one of the most common pitfalls unique to Peru, and particularly Arequipa with its older housing stock, is the widespread existence of unregistered ampliaciones (additions or modifications). A seller may have added a bedroom, built a second floor, enclosed a patio, or significantly altered the internal layout without updating their Declaratoria de Fábrica or their S.U.N.A.R.P. registration. This means the physical structure does not match the legal documentation. This will cause delays and complications during the purchase process, potentially requiring the seller to formalize the addition (a process called saneamiento de fábrica) before the sale can proceed, or requiring you, the buyer, to assume this responsibility (which we strongly advise against, as it can be costly and time-consuming). Always ensure the physical reality matches the legal documentation.
Additionally, properties featuring the iconic Arequipeñan sillar (white volcanic rock), while beautiful and historically significant, require specific maintenance. Sillar can be porous and, if not properly sealed or maintained, can be susceptible to erosion, dampness, and require specialized cleaning to preserve its integrity and appearance. Inspect sillar walls carefully for signs of deterioration or improper repairs, especially after heavy rains.
Financial & Tax Considerations (Briefly)
When considering the total cost of acquiring property in Arequipa, remember to factor in:
- Impuesto Predial (Annual Property Tax): Paid to the municipal government, based on the property's assessed value.
- Alcabala (Property Transfer Tax): A 3% tax on the transfer value exceeding 10 Unidades Impositivas Tributarias (UIT). For 2024, the UIT is S/ 5,150, meaning the first S/ 51,500 of the transaction value is exempt. This tax is paid to the Municipality by the buyer at the time of transfer.
- Notary and Registration Fees: Essential costs for legalizing the public deed (Escritura Pública) and registering the transaction with S.U.N.A.R.P. These fees vary based on the property value and complexity of the transaction.
All official transactions in Peru are conducted in Peruvian Soles (PEN), although prices are often quoted in USD for foreign investors. Be aware of exchange rate fluctuations and ensure your financial planning accounts for this.
⚠️ Legal Notice: Consult a Local Lawyer. This article provides general information and guidance based on Peruvian real estate practices. It is not a substitute for professional legal advice. Always consult with a qualified, independent Peruvian real estate lawyer and, if necessary, a certified architect or civil engineer before making any property investment decisions in Arequipa. They can provide specific advice tailored to your situation and ensure all legal requirements are met.