BOLETO:

The Boleto (a binding pre-contract) is a document normally prepared by the escribano. This is an intermediary step where the seller receives at least 30% of the agreed sale price, allowing them to secure a replacement property for the one to be sold. It is most commonly used when the signing of the title deed transfer is scheduled many months down the line. The boleto is basically the point of no return for both the buyer and the seller. If the buyer backs out, they lose the 30% down payment. If the seller backs out, not only do they have to return that 30% but they must also pay another 30% in compensation. But, unlike the reserva, the boleto also gives the prospective buyer the legal right to enforce the property sale (although any resulting lawsuit might take years). The boleto involves more risk for the buyer than the seller as they are paying 30% of the total price for a legally enforceable document but no physical possession nor title of the property.

ESCRITURA:

The Escritura is the actual closing date when all parties get together to sign the official deed transfer.  The buyer can now take possession of the property. All taxes on the property must be fully paid up at the time of transfer.

The agreed sum is paid in cash at this time or a transfer to a foreign bank account is set up and verified at a second meeting. (It is important to note that the payment required for the escritura does not need to be made in pesos. In fact, most owners will only accept US dollars or transfers to their accounts held abroad). The buyer does not have to be physically present to sign the transfer deed if a third party is authorised by a Power of Attorney to sign in their place. It is important at this point to have requested and obtained updated floor plans that reflect actual construction. Failure to do this may result in the new buyer having to pay the unpaid taxes of the previous owner. This also guards against any unlawful construction done to the property that could lead to problems in the future with the municipal government.