Importance of Using an Ethical Lawyer when Buying in BA

In the paid surveys that I conducted before purchasing here, I found that many foreigners were cheated by their lawyers or realtors. One of the questions I asked foreigners that purchased here in Argentina was, “what mistakes did you make”, “how were you cheated”, “what would you do differently”. A large percentage of them told me that they were incorrectly charged a phantom tax or fee by their realtor or lawyer.

Many lawyers would charge various taxes and fees to the buyer which was not correct. There is a stamp tax ("impuesto de sello") that is 3.6% of the declared purchase price.  

Keep in mind the stamp tax is split 50%/50% between the buyer and seller but you must request this when you make your offer if you already own more than one property.  The sellers sometimes do not want to split it and ask you to pay for it as a condition of selling the property. 

It is ESSENTIAL to use an ethical attorney that knows and understands the laws. Keep in mind here in Argentina that every single real estate purchase must go through a special attorney called a “notario publico”. Basically this notory public is a lawyer with a few more years training. They are specialized in dealing with real estate transactions. There are many lawyers here but I’ve found that many don’t fully understand the laws or they do understand the laws but don’t follow them.

Part of the reason that the title system is so stable here in Argentina is because every purchase and sale goes through a notario publico and a centralized office that documents every single property purchase and sale.  If there is a lien on the property, an ethical escribano will spot it immediately.

Every single real estate transaction must have a Notary Public that handles the sale.  And a very important fact is YOU as the BUYER have the right to select the attorney to be used for the purchase so make sure you use an ethical attorney.

When I decided to get serious about forming a consulting business and purchase significant amounts of real estate in Argentina, I interviewed many escribanos. One important thing I needed was that the lawyer could speak English fluently. Not only for me but for my future clients as well. It was essential that he/she could communicate with my clients. I found an excellent lawyer that was classy, had a great reputation, been in practice many years, respected by his peers,  and was ethical.

These notario publicos aren’t cheap here in Buenos Aires. The ones I interviewed that spoke fluent English charged between 2.5% up to 3% of the purchase price. It is not like in the USA or Europe. Here the deal can’t get done without the escribano so it’s very important that you use a skilled lawyer. There are many escribanos that might charge a lower fee but they will charge fantom fees or taxes later. Built into that percentage that they charge is the title and document fees that we as Americans pay separately in the USA outlined on the title papers.

Many escribanos claim to have a lower fee of 1.5% but then add on other fees like registration fees with the government, filing fees, Power of Attorney document fees, translation fees, etc.  We use the best attorneys in Buenos Aires that are totally fluent in English that have solid reputations (

one is the ex-presidents of the Bar Association in Buenos Aires).    We use these lawyers because they are the best in their field.   The Escribanos that we use include ALL fees inclusive of registration fees, all power of attorney documents, official English translations, getting your CDI number for you.   Others claim to be much cheaper but add on many additional fees.

I can’t emphasize enough the importance of using a great lawyer (notario publico). It 

is the single most important part of the buying process. I’m quite amazed by the problems that some of my clients have had. Many clients have come to me after they have initiated the purchase process or after they have purchased. I have many times discovered that their attorney was incompetent or dishonest. Most of my clients can’t speak Spanish and most attorneys here do not speak English. It always amazes me that someone would purchase property in a foreign country without being able to fully communicate with their attorney.

There are attorneys that may be cheaper but there is a price to pay for using a great attorney with a solid reputation that speaks perfect English. Would you go to Europe and buy a property with someone that could not speak English? Exactly. Don’t make the same mistake here. Use an attorney that has a solid reputation that speaks English if you are not completely fluent in Spanish.

Another piece of important advice – stay focused at all times.  Use common sense.  Buying property in a foreign country can be exciting but do not make any decisions or act in a way that you wouldn’t act in your own home country.  Common sense should always prevail no matter where you are at.  Always ask yourself if you would act in a similar fashion in the USA, UK, Asia or wherever you are from.   Would you use an attorney that didn’t speak English in the USA on an all cash deal?   Don’t let the fact that you are in a foreign country change your common sense.   There is very little or no room for errors when you are dealing with financial transactions in Argentina that are paid 100% in cash.

I could spend hours telling story after story of people that have used bad lawyers that cheated them or that did not know or understand the laws.  Remember that these lawyers do not get paid until you close on a property and hand over the cash to the seller so that many times motivates many unethical lawyers to push through on deals that should not go through.  The same thing applies to many realtors here in Buenos Aires.   The main reason why many selected their attorneys was because they tried saving a few hundred dollars on legal fees.  Do not make the same mistake.  Make sure you use an ethical and skilled attorney that you can fully communicate with. 

And it's never a good idea to use a lawyer that the realtor or seller is recommending.  You as the buyer are the one that has the right to select the lawyer to be used by both parties for the closing so make sure you select a reputable and ethical lawyer.