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'Rentals and Escribanos...' Real Estate

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Rentals and Escribanos...

This forum post has messages dated from 01/31/12 through 02/06/12, please be sure to read all the messages. If you feel it is old or outdated, please follow up with a question or comment and someone may be able to update it, or reply with newer information if you have it.


Forum Post
01/31/12 14:31
TotalUruguay.com
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Rentals and Escribanos...

Thank author of this post/commentIn the "notes" section, Cándida, asked this question which I will post here so more can comment on it:

"Iĺl like to know if itś usual that an 'escribano' ask a fee about 1 month rent to arrange a rental. There was this nice house and when I talked with the owner he sent me to his escribano. This is finally not my escribano, so why should I pay?"

I answered, but hopefully someone has a more complete answer.

A normal real estate agent commission for a 1 year rental is 1 months rent. I've not used an escribano for doing a contract, so I don't know the normal fee for that.

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Comment #1
02/01/12 05:07
Ciudad Vieja
Thank author of this post/comment"Escribano"

We paid 10% fee to our immobiliario for a 6-month rental. He used an escribano to handle the deposit (2 months rent) and, presumably, paid them a fee out of his commission. I don't know what he paid them. And, if this makes a difference, the 10% fee was based on the actual rent (+ 10% tax), not including gastos comunes, internet fees, etc. Just the actual rent.

I would guess that the owner is by-passing an immobiliario and using just an escribano. So the escribano is taking this opportunity to collect the whole fee.

How long is the rental contract? If it one year, then the one-month fee seems reasonable.


Comment #2
02/01/12 06:48
TotalUruguay.com
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Gold Member
Thank author of this post/comment"Real Estate Commissions"

The "standard" real estate commissions for rentals are:

1 month rent for 1 year contracts

1/2 month rent for 6 month contracts

and 10% of a month for shorter terms.

As far as the escibano. Why not call a different escribano and ask how much to prepare a rental contract. If the price is much less tell the owner you'll have your escribano write the contract.

Additionally all rental deposits are required by law to be deposited in the Banco de la Hipotacaria.

The advantages:

- The money can only be removed with the signature of both parties, so you can be sure your deposit will be refunded. ie: it's a DEPOSIT and not working capital for the owner.

- You earn "interest" on the deposit (actually, I think it is an indexed kind of thing so the increase is based on inflation or something).

The disadvantages:

- The account has to be in Pesos. You have to pay the bank a commission to deposit it (like 5%).

- It is often a long wait in line.

Disadvantages of not using it:

- You might have a hassle getting your deposit back. I rented two places with cash deposits to the owners (2 months rent for a 3 month rental, and 3 months rent for a 6 month rental). On the second one the owner was doing to hold my deposit for a month or so after I moved to wait for the final electric bill. My real estate agent calculated an estimate of the bill.. to be about US$20 for my portion and the owner was going to keep US$1350 to secure that. My real estate agent suggested I would keep the keys and that resulted in the immediate refund of my deposit.

- For the owners, there are horrendous penalties in the rental laws for abusing the deposit provisions. Obviously there is no "tenants union" type groups active...

For short term rentals it is probably not too big a deal, if you can afford to lose the deposit. You'll probably also more likely to be hit with cleaning fees and other nickel and dime things when you move out.

The maximum deposit allowed for residential properties is 5 months rent. Some owners ask for him, and I think those that agree are simply training them that N. Americans are suckers willing to pay too much for stuff.

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Comment #3
02/06/12 14:04
Montevideo
Thank author of this post/comment"What the price should be"

Hey guys, I talked today with an escribano and he explains that you should be required to pay the making of the contract. He also told me that usually is half month the price. He suggest that if the escribano asks more than you should talk with the owner and divide the price: you the half and he/she the other half. Now you know!

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