Changing a property's title after the owner's death

After the death of a property's titleholder in Peru, the heirs cannot sell, formally rent out or mortgage the property until the succession is completed and the change is recorded at SUNARP. There are two routes for the process: notarial and judicial.

Testate vs. intestate succession

• Testate: the deceased left a will (by public deed or sealed). It's verified through SUNARP's Will Registry.
• Intestate: there is no will. If all heirs are spouse, ascendants or descendants and they agree, it's processed through notarial intestate succession, regulated by Law 26662 (notarial competence in non-contentious matters). If there are minors, absentees or oppositions, it goes to the Judiciary.

Step-by-step procedure before a notary

1. Documentation the notary requires

• Death certificate.
• DNI of the deceased (cancelled by RENIEC).
• Marriage certificate if applicable.
• Birth certificates of the heirs.
• Property's partida registral (from SUNARP).
• HR and PU of the autoavalúo for the current year.
• Proof of no Predial debt or detail of the debt.

2. Start of the procedure

The notary requests negative certificates from the Will Registry and the Intestate Succession Registry (both at SUNARP) to confirm no prior procedures exist.

3. Mandatory publications

For intestate succession, a notice is published in El Peruano and in a high-circulation newspaper. The idea is for any interested party to be able to oppose within statutory deadlines.

4. Protocolary act of declaration of heirs

If there's no opposition, the notary issues the protocolary act declaring the heirs. If there was a will, instead the comprobación and protocolización are carried out.

5. Recording at SUNARP

The declaration — or the protocolized will — is recorded at the Intestate Succession Registry and at the Property Registry through a new entry linking the property to the heirs.

6. Inventory and partition (when applicable)

If heirs want to adjudicate the property to a single person or split the assets, a public deed of division and partition is signed. That's what actually changes title in the property's registry record.

Typical costs in soles

| Item | Indicative range | | ------------------------------- | ------------------------------- | | Notarial intestate succession | S/700 – S/2,500 | | Newspaper publications | S/300 – S/900 | | Division and partition deed | 0.5% – 1.5% of value | | SUNARP registry fees (Property) | approx. 0.81% of recorded value | | Optional legal advice | S/800 – S/3,000 |

For a property worth S/350,000, the full change usually runs between S/4,500 and S/9,000, not counting prior tax debts.

Taxes: what you should know

• Peru does not apply an inheritance tax as such. There's been no Inheritance Tax since 1979.
• The Impuesto Predial must be regularized at the municipality. Heirs take on the historical debt.
• If the property is later sold, the gain is taxed as second-category Income Tax (5% on the gain), unless it qualifies as a single home under the rules of the applicable supreme decree.
• A sworn declaration of transfer must be filed at the municipality to update the autoavalúo under the new owners.

Special cases worth anticipating

Sociedad de gananciales regime

If the property was acquired during marriage under sociedad de gananciales, 50% goes directly to the surviving spouse and only the other 50% becomes part of the estate.

Mortgage with life insurance

Bank mortgages and Fondo MiVivienda loans usually include life insurance that cancels the balance upon the holder's death. It's essential to request the cancellation certificate from the bank and record the lifting of the mortgage at SUNARP before recording the division and partition.

Inheritance with minors or heirs abroad

Here the procedure usually goes to the Judiciary. If there are heirs outside the country, they must grant power by apostilled public deed, recorded at SUNARP's Powers and Mandates Registry.

Risks of not regularizing

• The property cannot be sold, mortgaged or pledged as guarantee.
• Predial debt and municipal arbitrios keep growing.
• Undeclared heirs may appear and start an inheritance petition.
• In adverse possession proceedings, third parties may claim peaceful possession if the family doesn't occupy the property.

Final recommendations

• Start with an updated partida registral of the property and verify negative certificates at SUNARP.
• Ask the notary for a closed quote that includes publications, kárdex and registry fees.
• Don't stop paying the Impuesto Predial while the procedure advances: the municipality charges the property, not the holder.
• Consider division and partition from the start if heirs want to adjudicate the home to a single person.

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