New Regulation to Boost Housing and Mortgage Loans in Argentina

Joint Resolution 2/2025, issued by the Ministries of Justice and Economy, marks a key step in the implementation of Decree 1017/2024, with the aim of:

  • Revitalizing the mortgage loan market
  • Boosting the real estate sector
  • Contributing to the country’s economic recovery

Here are the most relevant aspects of this regulation, which modernizes the real estate financing system:

Divisible Mortgages

  • Allow the establishment of mortgages on properties that will be subdivided, such as buildings under construction within a horizontal property regime.
  • The mortgage can be created as divisible or be converted into a divisible one later.
  • Once the property is subdivided and the units are transferred to buyers, the loan and the collateral are proportionally distributed among them.

Mortgages on Surface Rights

  • Mortgages are authorized on buildings constructed by those who are not owners of the land.
  • This allows for project financing by securing the loan with the surface right, encouraging the development of new constructions.

Registration of Preliminary Sales Agreements

  • The registration of preliminary sales agreements and contracts for future units (under construction or planned) is allowed under horizontal property or other land subdivision regimes.
  • Registration may be done in the Property Registry or in entities authorized by the National Securities Commission (CNV), provided there is prior registration impact.
  • This grants public registry notice (per Article 1170 of the Civil and Commercial Code), giving priority to the good-faith buyer over third-party creditors.

Additionally:

  • Coordination is established between the involved ministries and local authorities to ensure implementation of the regime nationwide.
  • The CNV must publish an updated list of authorized entities to register these agreements, with public access to the information of each property.

In summary, this new regulation increases legal certainty, transparency, and efficiency in Argentina’s real estate financing system, adapting it to the current market’s real needs.