Bill Bulletin No. 18.241-03

Project Objectives:

• To professionalise the property brokerage sector.
• To increase protection for buyers, sellers and tenants.
• To improve transparency regarding property listings, contracts and commissions.
• To prevent crimes (money laundering, fraud) linked to the property market.
• To facilitate oversight by the State and the competent authority.

Scope and definitions:

Scope: estate agency transactions relating to the sale, purchase, letting, management and mediation of property carried out by natural or legal persons in Chile.

Key definitions:

• Estate agent: a licensed individual who acts as an intermediary in property transactions in return for remuneration.
• Estate agency / Estate agency firm: a legal entity that organises, advertises and markets properties and employs estate agents.
• Principal: the person commissioning the sale or letting (the owner).
• Client/Counterparty: the buyer or tenant.
• Brokerage contract: a written contract governing the mandate, commission, exclusivity, duration and obligations.
• Brokerage activity: any action taken to find a counterparty and facilitate a transaction.

Regulatory authority and register

• Responsible body: Superintendency of Securities and Insurance (SVS) or the establishment of a National Register of Estate Agents within the Superintendency of Insolvency and Business Recovery / Ministry of Housing (as designated).
• Compulsory national register: any person practising as a estate agent must be registered; the agency must be registered as the responsible body; annual renewal and public disclosure.
• Registration requirements (individuals): Tax Identification Number (RUT), criminal record check, professional qualification or minimum certification (see below), civil liability insurance, identified bank account, anti-money laundering training.
• Registration requirements (legal entities): Tax Identification Number (RUT), authorised representatives (registered estate agents), procedures manual, liability insurance, anti-money laundering compliance, minimum capital depending on size.

Authorisation and professional training

• Qualification: compulsory course (minimum 120 hours) on property law, contracts, professional ethics, anti-money laundering, data protection and town planning regulations. Certification issued by an accredited body and a requirement for registration.
• Continuing professional development: 16 hours per year to maintain registration.
• Incompatibilities: public officials responsible for supervising planning permissions and judges may not practise as estate agents, except in exceptional circumstances.

Duties and responsibilities of the estate agent and the agency

• Duty to provide prior and accurate information: to provide a written property profile (identification, encumbrances, structural condition, town planning status, certificates, charges, service charges, debts, land registry and municipal documentation).
• Mandate document/brokerage contract: must be in writing; must include the parties’ details, price, commission (percentage or fixed amount), method of payment, exclusivity (if applicable), term and powers. Maximum exclusivity period: 180 days (unless otherwise agreed upon with justification and mutual consent).
• Express prohibitions: charging a commission before the transaction is actually completed without legal justification; misleading advertising; concealing encumbrances; acting in a conflict of interest without full disclosure and written consent.
• Safekeeping of funds: if advance payments or deposits are received, there is an obligation to deposit them into a trust account or a separate account in the principal’s name at a bank; a record of transactions must be kept.
• Confidentiality and data protection: compliance with Act 19.628 (data protection) and privacy regulations; written consent for the processing and transfer of data.
• Obligation to cooperate with the authorities: to provide information and documentation to the authorities and to facilitate audits.

Contracts and advertising

• Advertising: all offers must state the price, commission and the condition ‘subject to confirmation’, and display the registration number and name of the responsible estate agent. Advertising that omits essential information is prohibited.
• Brokerage contract: must be signed by the principal and the broker; in the case of a verbal mandate, there is a maximum period of 15 calendar days to ratify it in writing; failure to do so will result in the commission not being recognised.
• Transparency regarding commission: this must be stated in the offer and the contract; in sale and purchase transactions, the payment and allocation of commission must be made clear (whether it is paid by the buyer, the seller or shared between them). Clauses preventing the client from taking action against the estate agent for undue charges are prohibited.

Duty of care and conflict of interest

• Obligation to verify ownership and encumbrances: the estate agent must provide a title deed and a report on encumbrances; if they fail to do so and cause loss, they are liable.
• Conflicts of interest: the estate agent or agency must disclose whether they are acting as a buyer, a partner or have a close relationship; the transaction must be carried out with the client’s informed written consent and with alternative offers.

Prevention of money laundering and terrorist financing

• Mandatory AML/CFT policy: assess the risk of unusual transactions; customer identification (KYC), verification of the identity of beneficial owners, reporting of suspicious transactions to the Financial Intelligence Unit (UAF) and retention of records for 10 years.
• Prohibition on cash transactions exceeding a threshold (e.g. UF 10) without reporting and verification.
• Administrative and criminal penalties for failure to report.

Sanction regime

• Proportional administrative sanctions: warning, administrative fine (UF 10–1,000 depending on the severity), temporary suspension of registration, cancellation of registration.
• Civil liability: compensation for damages to clients.
• Criminal liability: arising from offences, fraud, money laundering or deception; referral to the Public Prosecutor’s Office.
• Sanctioning procedure: preliminary investigation, right to a fair hearing, reasoned decision and the possibility of administrative and judicial appeal.

Consumer protection and dispute resolution mechanisms

• Right of withdrawal/rectification: a buyer or seller affected by misleading advertising or concealed information may withdraw from the transaction and claim compensation for damages within a reasonable timeframe (e.g. 30 days from discovery).
• Mandatory complaints register: agencies must have a complaints-handling system in place, with a maximum response time of 15 days.
• Fast-track arbitration mechanism: establishment of a specialised arbitration body for brokerage disputes with fixed time limits (60–120 days) and the possibility of enforcing the award through the courts.
• Access to sanctions and publications: serious administrative sanctions will be published in the public register.

Digital innovation and public register

• Public platform (portal) containing a register of estate agents and agencies, a history of sanctions, and property details including key documents (title deed, floor plan, encumbrance status).
• Use of electronic signatures and digital copies of contracts, with traceability and safekeeping requirements.

Transitional measures and implementation

• Compliance period: 12 months from publication for registration and fulfilment of requirements; 24 months for full adaptation (AML/CFT systems and platforms).
• Subsidised training programmes: accredited courses for the regularisation of existing estate agents.
• Review clause: regulatory review after 3 years to make adjustments in line with market impacts.

Basic outline of contractual obligations

• Parties, subject matter, property price, commission (percentage or fixed amount), method of commission payment, term of the mandate (start/end dates), exclusivity (yes/no and maximum duration of 180 days), broker’s obligations (provision of information, verification, safekeeping of funds), principal’s obligations (provision of documents, accurate information), dispute resolution clause (specialised arbitration), AML/CFT clause (cooperation), broker’s signature and registration.

Evaluation and oversight indicators

• Indicators: average time taken to resolve complaints; % of registered brokers; number of sanctions imposed; average time taken to record transfers in company ledgers; % of transactions with KYC verification.
• Random audits by the authority, annual reports and publication of statistics.