The Paraguayan Congress accepted the creation of the “National Unified Registry” (Registro Unificado Nacional-RUN), which will replace the old cadastral system. However, the new law passed only the first step through the Paraguayan Senate for the first reading, and now they will vote again about the final text.
Why did the Paraguayan legislators want to renew the country’s property cadastral system?
In theory, buying or selling property in Paraguay is simple. However, knowing who the actual owner was, the possible loans and the real estate conditions were always questionable, and it was not easy to find the exact answers and certificates. This created a complex situation in the case of older buildings or properties with complex ownership issues (for example, heritage).
The Lower House voted to create the National Systems of Unified Registry (RUN) and Cadastral System. The Supreme Court of Justice (CSJ) will supervise the new authorities.
Meanwhile, the Senators of the opposition parties opposed the creation of the new system because they believed it would only increase legal uncertainty and harm Paraguay.
The most controversial point during the debate was Article 126 of the law, which the Chamber of Deputies deleted because it allows the registration of deeds without a certificate of ownership of the property without describing its conditions.
On this point, it is questioned whether the registration of a property can be carried out without the certificate of the property’s conditions. However, it must be taken into account that this article provides a mere option for the user, who, precisely because of the risk involved in carrying out a registration under these conditions, must pay a fee twice as high as that foreseen for an ordinary registration,’ said the magistrate in the text read out by Hugo Meza from the Colorado party.
What is RUN in Paraguay?
The National Unified Registry (RUN) project proposes merging the General Directorate of Public Registries (DGRP), the National Cadastre Service (SNC), and the Department of Surveying and Geodesy. Representatives of the executive, legislative, and judicial branches presented it at the end of August 2024.
One of its objectives is to solve the problems of overlapping real estate titles and the complexity of various procedures by merging these three entities. However, Ultima Hora points out that legislators and specialists presume legal uncertainty as a weakness of the recently approved project.
Do you want to buy property or invest in Paraguay? Ask for a consultation about the related legislation and conditions here. It is better to know all the details before making your decision.
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