The Secret World of Uruguay’s Property Market

Buying in Uruguay is nothing like you’re used to back home in the U.S., Canada, or Europe. Unless you’ve already bought real estate in Latin America, forget everything you think you know about buying property, before you set out to stake your claim on this emerging real estate market.

Sizing up a property

The first thing you need to know is how real estate agents measure the size of a property in Uruguay. Usually when agents talk about homes or condos they list the space in terms of internal space and external space (which can include a terrace). But sometimes they count the internal and external space as one square meter (not square foot) figure. The internal space of a property is normally measured by the square-meter value of the floor plus the square-meter value of the walls. In other words, everything that’s under the roof. The external space (usually a terrace) is the area of the floor without a roof. Tip: As a rule of thumb, the external space of a property costs the builder about half as much as the internal space to build.

Be sure that you understand exactly what they are counting as square meters when you buy.

Real Estate Agent's Commissions

Generally the buyer pays the real estate agent 3% (plus VAT at 22% of the 3% tax) for commission. The seller also pays the realtor a commission of 3% (plus VAT at 22% of the 3% tax). The commission can be negotiable, especially if the property is a large parcel, but it is unlikely to get a discount on a small property or home.

Closing costs including the real estate agent's commission will range between 8% and 9%.

Uruguayan real estate terms

If your Spanish is good you have a head start, but here are a bunch of terms real estate agents will through about that you’ll need to understand.

• Chacra: A larger lot of between one and five hectares. A chacra may or may not include infrastructure.
• Estancia: An estancia is a ranch, but can sometime refer to a ranch house. If the term is referring to a house, it always means there is a larger piece of land going with the property.
• Terreno: A property that can be a small amount of land or a large property.
• Apartamentos, departamentos, or condominios: All different ways to say condominium.
• Estudio: An office.

What’s included with your property

Make sure to check what’s included in the purchase of your new condo or home. Some items that may not be included can be pretty abstract—parking spaces in condos, light fixtures, toilet seats, etc.—so don’t assume anything.

Keep an eye out for next weeks “How to…” article for a step-by-step guide to buying property.