Financial glossary for real estate

A fideicomiso is a trust arrangement under Argentine law in which a fiduciante (trustor) transfers assets or funds to a fiduciario (trustee) to be managed for a specific purpose and for the benefit of fideicomisarios (beneficiaries). In real estate development, fideicomisos are widely used to ring-fence project funds from the developer's other assets, providing a degree of protection for investors and buyers.

A specific type of real estate fideicomiso in which participants contribute to the actual construction cost rather than paying a fixed price. The final unit value reflects the real cost of construction, which can vary. This structure is common in Argentina because it allows projects to proceed during periods of economic uncertainty, with buyers sharing both the cost risk and the potential benefit of cost efficiency.

The UVA is an Argentine inflation-adjustment unit created by the Central Bank in 2016. Its value is updated daily based on the CPI (consumer price index). UVA-indexed mortgages and payment plans adjust the outstanding balance and monthly payments in line with inflation. This means the real value of the debt remains more stable over time, but nominal payments will increase as inflation rises.

The CAC (Cámara Argentina de la Construcción) index measures the evolution of construction costs in Argentina. It is published monthly and is widely used in real estate contracts to adjust payment installments in line with the actual cost of building. When a contract states that payments are "CAC-indexed," it means each installment is recalculated using the latest published index figure.

A boleto de compraventa is a private purchase agreement that precedes the formal escritura (public deed). It is a legally binding contract between buyer and seller that establishes the terms of the sale, including price, payment schedule, and delivery conditions. While it does not transfer title, it creates enforceable obligations for both parties. In off-plan sales, the boleto is typically the primary document during the construction phase.

The escritura pública is the formal notarized deed that transfers legal ownership of a property. It is executed before a notary (escribano) and registered in the public property registry. Until the escritura is signed, the buyer does not hold legal title, even if they have been living in the property. Escritura costs (which include notary fees and transfer taxes) are typically shared between buyer and seller according to local practice.

Real estate crowdfunding in Argentina refers to platforms and structures that allow multiple smaller investors to participate collectively in a development project. These vehicles are typically structured as fideicomisos or sociedades and are regulated by the CNV (Comisión Nacional de Valores) when they involve public offering. Investors receive a proportional stake in the project's outcome. This resource describes the concept only and does not constitute investment advice.

Buying "en pozo" (literally "in the ground") refers to purchasing a property before or during construction, before the building physically exists. The buyer commits at an early stage, typically at a lower price than the finished unit would command, in exchange for accepting the risks associated with the construction phase. Pozo sales are a fundamental mechanism of Argentine real estate finance, as they provide developers with pre-sale revenue to fund construction.

In Argentine real estate, surface area is typically quoted in two ways: metros cubiertos (enclosed, roofed area) and metros totales (total area including semi-covered spaces like balconies, terraces, and parking). Pricing is usually based on covered square meters, but total area is relevant for understanding the full usable space. Buyers should clarify which measurement is being used when comparing properties or evaluating pricing.

ABL is a municipal tax in Buenos Aires and other Argentine cities that covers street lighting, sweeping, and sanitation services. It is levied on property owners and calculated based on the fiscal value of the property. When evaluating the ongoing costs of owning a property, ABL is one of the recurring municipal charges that buyers should factor into their calculations alongside expensas (building maintenance fees) and other taxes.