In southern Chile, it’s common: a piece of land passed down from parents to children “by word of mouth,” a plot purchased years ago with a simple promise, or land occupied for decades without proper documentation. The result is always the same—you can’t legally sell, mortgage, or bequeath it. The legal tool to resolve this situation is Decree-Law 2,695.
What does Decree-Law 2,695 allow?
It allows anyone who has possessed a property peacefully, continuously, and exclusively for at least 5 years to apply to the Ministry of National Assets (Bienes Nacionales) to regularize their possession. At the end of the process, you obtain a title deed registered with the Real Estate Registry (Conservador de Bienes Raíces) and your own property tax ID (rol) with the SII: the property is legally registered in your name.
Main Requirements
- Physical possession of the land for 5 years or more (fencing, crops, construction, payment of bills: all serve as evidence).
- No pending lawsuits regarding the property.
- The tax appraisal must not exceed the legal limits (the vast majority of rural parcels qualify).
- Provide proof of the origin of possession: purchase agreement, payment receipts, statements from neighbors, etc.
Steps in the Process
- 1. Submit an application to the Ministry of National Assets (Bienes Nacionales) with the case file.
- 2. Survey and map: a professional surveys the actual boundaries of the land.
- 3. Legal publications and the third-party objection period (this is where poorly prepared cases fall through).
- 4. Decision and registration with the Real Estate Registry (Conservador de Bienes Raíces).
The entire process typically takes 12 to 24 months. One year after registration, title becomes final and enforceable.
Can you do this on your own?
Formally, yes—but in practice, applications submitted without legal guidance are rejected or take an eternity to process due to errors in proof of possession, poorly defined boundaries, or improperly addressed objections. Our recommendation is to work with attorneys specializing in real estate. At Parcelas Patagonia, we work with Osiadacz Abogados, a law firm with experience in title regularization in southern Chile, which offers a free evaluation to determine if your case qualifies before initiating any proceedings.
The Ultimate Reward
A regularized plot of land sells at the true market price (a plot without a title is sold at a loss, if it sells at all), provides access to subsidies and loans, and ensures your estate is in order for your family. And once your paperwork is in order, you can list it for free on Parcelas Patagonia with the “documentation in order” badge.