BOLIVIA CREATES NEW OBLIGATIONS IN THE REAL ESTATE SECTOR
The Government of Bolivia passed the Supreme Decree No. 4732, of June 1, 2022, which aims to prevent “terms and practices that are abusive commercial” in contracts for the future sale of real estate, directly linked to the sector of real estate development and sales.
The DS 4732 June 1, 2022, in its article 1 states: “The present Supreme Decree is to establish provisions for the regulation, prevention of unfair terms and abusive commercial practices in contracts related to the future sale, sale with reservation of ownership or other forms of real estate, in the framework of the Law N° 453, 4 December 2013, General of the Rights of the Users, and Users and consumers and Consumers”.
In addition, the scope of application of the Decree is for the “entire agreement pop-up of a legal relationship that the subject is related to the future sale, sale with reservation of ownership or other modalities commonly known as pre-sale, of a property of any kind, including plots of land, houses, lots, burial, parking lots, warehouses, shops and other real estate offered under such arrangements”.
Contracts emerging from the relationships described above shall have a mandatory certification issued by the Ministry of Justice and Institutional Transparency through the Vice-ministry of Defense of the Rights of the User and the Consumer, who determines that such contract does not contain unfair terms.
REQUIREMENTS FOR CERTIFICATION
To get the certification, the contract must contain:
- Identification of the owner of the property;
- Identification of the promoter, broker, builder, or another in charge of the sale, as appropriate;
- Identification documents that prove the ownership of the property on which the project will be implemented object of the contract and/or documents with the power of disposition of the property;
- Accreditation of the right owner of the property, "folio real" and the public deed of the property and the other, in which the project will be implemented, subject of the contract;
- Document with the power of disposal of the immovable property and transfer of rights, without limitation;
- Clause that permits the buyer to transfer the property or do any kind of assignment of rights or accessories;
- Duty clause of the immediate delivery of the property title to the buyer upon payment of the agreed sale price. This obligation must be set explicitly, as well as the sanctions for non-compliance;
- Express provision of non-unilateral modification of the price of sale agreed upon between the parties;
- Clauses that are not disproportionate without to the user and user, consumer or consumer.
- Date of start of the work, as appropriate;
- Date of delivery of the property subject of the contract;
- All payments made by the user or a user, consumer or consumer must perform as part of the agreed sale price, as well as payments for other concepts;
- The surface of the real estate and its technical characteristics;
- Any obligation existing on the property, including taxes;
- Plans authorized and construction permits granted by the Autonomous Government, Municipal, real estate projects;
- Document management territory approved by the Autonomous Government, Municipal, to lots;
- Clause establishing the percentage of common areas;
- Other requirements that may be requested.
PRACTICES ABUSIVE COMMERCIAL
The decree identifies eight types of abusive commercial practices in the framework of the Law 453:
- Subscribe to contracts not certified, in accordance with what is established in the Decree.
- To bid on the prospective sale, sale with reservation of ownership or other forms of pre-sale, real estate, uncredited specific faculties of the disposal on the property granted by means of a public instrument by the owner.
- Failure to meet the deadline of delivery agreed in the contract.
- Non-compliance to the technical characteristics of the property or other agreed terms and conditions; (e) The requirement of any other charge not covered in the contract.
- The breach of deals relating to the common spaces, accessories and other commitments.
- Unilateral modification of the use of the common areas offered;
- Sale of construction and other that do not have the authorization of the Self-Government of the municipality.