What Happens to a Property That Isn't Regularized
The bank cannot finance it. If your buyer needs a mortgage, the appraiser will rule out the property, and the bank won't provide financing. Your pool of potential buyers is limited to those who can pay in cash, which lowers the price and prolongs the waiting period.
It isn’t covered by insurance. In the south, given the harsh winters, having a property without insurance coverage is no small matter.
It complicates inheritance. Your children or heirs will have to regularize the property first before they can complete any legal procedures. More time, more cost, more family conflict.
It makes you ineligible for subsidies. MINVU subsidies, CONAF grants, and home improvement programs—all require the property to be in good standing.
How do you regularize a house on a plot of land in southern Chile?
The process has five main steps:
1. Verify the land — ensure it has its own parcel number, is currently registered with the Real Estate Registry, and has no outstanding debts or pending litigation.
2. Apply for the CIP at the DOM — the Certificate of Preliminary Reports tells you which regulations apply to your plot and what you can regularize.
3. Hire an architect — who assesses feasibility, prepares plans and a descriptive report, and obtains the necessary approvals from the SAG and the Regional Ministry of Housing (Seremi de Vivienda) when the land is rural.
4. Submit the application to the municipality — along with plans, forms, and payment of municipal fees. The process takes between 2 weeks and 2 months, depending on the municipality.
5. Final inspection — a municipal inspector verifies that the completed structure matches the approved plans. With that document in hand, your home is legally recognized.
Is your home less than 90 m²?
It may qualify for the Ley del Mono (No. 20,898), a simplified and more affordable process. In rural areas of southern Chile, there are additional requirements depending on the origin of the subdivision, so it’s important to review this with a professional who is familiar with local regulations.
How much does it cost?
Regularizing a 100 m² house in southern Chile costs, on average, between $1,200,000 and $1,800,000, including architect’s fees, engineering costs, and municipal fees.
Failing to regularize it could cost you much more: a sale that falls through, an insurance policy that won’t pay out, or an inheritance that becomes complicated.
Building in the south takes hard work. Protect your investment by keeping your paperwork in order.
If you own a house on a plot of land and aren’t sure if it’s legally compliant, write to us. We’ll provide free guidance and connect you with architects who are familiar with the regulations in the Los Lagos Region.
The south is a place to stay. Make sure everything is in order.
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