InstitutionalNewsNew Technical Provisions for Title Registers

June 2, 2021

On 31 March 2021 the National Directorate for Registration of Titles defined a unified approach to the requirements for real estate transactions that are usually processed in the Registries of Titles (RT). For the most part they already existed formally or were implemented through the customary practice of the RTs.

The following are relevant and novel aspects:

 

1- TECHNICAL PROVISION DNRT-DT-2021-0002: “Reception and Handover Policies before the RT”.

Effective from 01 May 2021

1.1 – Cross-use of documents. When depositing an application for registration of any real estate transaction, it is possible to use documents contained in another file of the RT already closed, e.g. a company meeting minutes, copy of identity cards, marriage certificates, etc., so that the applicant does not have to procure the originals of these documents again from the different private and public issuing entities. However, such cross-use is only allowed if the documents have not been deposited with the RT for more than 6 months.

1.2 – Non-withdrawal of title. RT may attach the original of the title deed to files received from the real estate court (determination of heirs, partition of community property, etc.) when it is on file, so that the owner does not have to go through the process of withdrawal/deposit of the title deed.

1.3 – Enforcement of boundary delimitation for purchasers of plots in housing projects. Owners of large tracts of land in which they have housing/tourist projects consisting of sales of plots of land and who leave it up to the purchaser to demarcate their plot (e.g. Casa de Campo), may, by a simple communication, authorise the RT to issue all the titles resulting from each of these demarcations without having to withdraw/deposit their original title for each demarcation request.

 

2- TECHNICAL PROVISION DNRT-DT-2021-0001: “General Requirements of the Registration Procedure”.

Effective from 01 May 2021.

2.1 – In acts under private signature (sales, mortgage loans, etc.) the signatures may be legalised by a notary public of the parties’ choice, instead of the locality in which the property is located. This is the great novelty; it was compulsory to use the notary public of the locality of the property, which substantially increased the cost of real estate transactions, in addition to the difficulty of travelling to the place of the property to sign such acts.

2.2 – In the case of deeds in which the notary certifies the content of the document and the signatures, which affect a real estate registration right, he must be from the locality of the real estate. “Affecting” refers to any act of disposal of the right of ownership, credit, lease, easement, etc.).

  • The last relevant aspect is the formal definition of processes and requirements that had been implemented by custom in practice. These include updating title data, leases without a long duration, right of use, usufruct, seizure by the Public Prosecutor’s Office, labour privilege, declaration of the spouse’s own property and opposition to transfer due to money laundering.

 

By Jeanny Aristy
Senior Associate

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