Chile publishes Law No. 21,718 to expedite real estate projects
The Government of Chile has published Law No. 21,718, which amends the General Law of Urbanism and Construction, in addition to a series of regulatory provisions.
The new law, introduced on November 29, 2024, aims to expedite the process of real estate projects by reducing the number of administrative steps, increasing transparency, and establishing a more severe liability regime for the intervening agents that do not comply or that generate damages for the development of real estate projects.
This law was supplemented by Circular No. 511 of the Urban Development Division (DDU) of the same date, which established the terms for the entry into force of each indicated amendment, which could range from 45 days to 6 months from the publication of the law.
Key new regulations include the following:
Construction permit applications
- Deadlines for the granting of construction permits: The Municipal Works Directorates (DOM) maintain a 30-day deadline to respond to the applicant regarding a permit application for standard projects. A 60-day deadline is included for larger housing projects for which occupancy load is equal to or greater than 1,000 people.
If a favorable report from an independent reviewer is submitted, the above deadlines are reduced by half. - Introduction of the concept of negative administrative silence: In cases where the DOM does not respond to the applicant within the established term, the applicant may invoke a negative administrative silence and have the application rejected in order to initiate the procedure before the corresponding Regional Ministerial Secretariat of the Ministry of Housing and Urban Development (SEREMI MINVU).
- Replacement of construction permits by affidavits for certain types of construction works: This includes the possibility of carrying out a series of minor works, which, taking into account a series of aspects indicated in the General Ordinance of Urbanism and Constructions (General Ordinance), may be carried out without the corresponding building permit, provided that builders use an affidavit issued by competent professionals, comply with urban and technical standards, and follow the procedure established. Such a procedure must never be more burdensome for the applicant than the regular building permit procedure.
Transparency and access to information
- Mandatory publishing: The DOM must publish a list of permits, authorizations, and affidavits issued by the Directorate of Works monthly. This information must be made permanently available to the public.
Toughening of the professional liability regime
- Architects and other related technical professionals: The subsidiary’s responsibility towards the builder is subject to a joint responsibility between independent reviewers and architects for infringements on actions within their competence.
Interagency coordination and improvements
- Basic services: Sanitation and energy service providers must respond to necessary requests within ten days in order to move forward with construction projects, counted from the date of the request.
Specific works and flexibilities
- Priority public projects: Simultaneous execution of health, education, and sports works on the same property is allowed, provided that urban planning regulations are respected. In addition, the law includes the establishment of a specific registry within each DOM for projects involving several permits.
- Revision of urban planning regulations: Regulations on subdivisions, lots, and boundary modifications are adjusted to ensure they strictly comply with regulatory plans and do not affect third parties.
Claims and appeals procedures
- Claims before SEREMI MINVU: A detailed procedure is established for individuals to file claims before the SEREMI MINVU in the event of the DOM’s refusal to grant permits or authorizations. Similarly, concerning those projects that comply with the established requirements, the authority is empowered to order the DOM to grant the permits and authorizations without further processing and within five working days.
Additional modifications
- Minimum property frontage: The concept of minimum property frontage is introduced as a new urban planning rule to subdivision and urbanization applications.
- Deadlines for administrative proceedings: Real estate conservators will have a maximum of 20 days to resolve applications for registration within the various registries, and, in the case of observations, the term will be ten days from the date of the reinstatement, which will significantly reduce waiting times.
Going forward
Specific reforms introduced by the new law, such as sworn statements, must be implemented with the corresponding General Ordinance regulating such matters.
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