Types of purchase

Buying a lot in a developer trust (fideicomiso) in Argentina

By Nico F. · Updated October 12, 2026 · Leer esta nota en español

General information, not legal, immigration or tax advice. Rules, exchange rates and prices change and every case has its own details. Before you pay, sign or apply for residency, check the current rules with an Argentine notary (escribano), lawyer or accountant.

Quick answer A fideicomiso is Argentina's version of a trust. In a real estate fideicomiso, the buyer of a lot is usually an adherent (adherente) who pays a trustee (fiduciario), the party listed as owner of the land until it is transferred. What you buy can be the lot itself or rights in the trust, and that difference depends on the contract you sign. The trust's assets are a separate estate from those of the trustee, the settlor (who may be the developer), the beneficiary and the final recipient (art. 1685), and the trust's debts are paid only from those assets. Art. 1687 leaves open the trustee's personal liability under the general rules. If those assets are not enough to pay the trust's obligations, there is no bankruptcy: unless the contract provides other resources from the settlor (fiduciante) or the beneficiaries, a court-supervised liquidation applies (art. 1687). Before paying, it is wise to read the whole contract, check in the title report who is listed as owner and what encumbrances there are, and consult a notary.

What is a real estate fideicomiso and how is it used in lot developments?

In a fideicomiso, one person (the settlor, fiduciante) transfers or agrees to transfer assets to another (the trustee, fiduciario), who manages them for the benefit of a beneficiary (beneficiario) and hands them over at the end to a final recipient (fideicomisario) (Civil and Commercial Code, art. 1666). In a lot development, the land and the contributions of the adherents make up the trust's estate, and the trustee builds the works and delivers the lots. The labels "cost-based fideicomiso" (fideicomiso al costo) or "real estate fideicomiso" come from the market: the Code does not define them. What matters is what each contract says.

Who is who?

Settlor (fiduciante): the party who contributes the assets. Sometimes this is the developer.
Trustee (fiduciario): the party listed as owner who manages the trust. The trustee must act with the prudence of a good businessperson, render accounts at least once a year and cannot keep the trust's assets (arts. 1674 to 1676).
Beneficiary (beneficiario): the party who receives the benefits. It can be the settlor, the trustee or the final recipient.
Final recipient (fideicomisario): the party who receives the assets when the trust ends. It cannot be the trustee (art. 1672).

The buyer of a lot can be an adherent settlor or a beneficiary by assignment of rights, or can sign a purchase agreement (boleto) with the trustee as seller. It is important to know which of those positions you hold.

What are you really buying: a lot or rights in the trust?

It depends on the contract. Registrable assets, such as a lot, are registered in the trustee's name with a note that its ownership is fiduciary (arts. 1682 and 1684). Until the final transfer, the adherent usually has contractual rights in the trust, not ownership. If instead you sign a purchase agreement with the trustee, you hold a boleto, with the protections of art. 1170 (priority over attachments by third parties if its conditions are met, among them having paid 25% of the price) and, if payment is in installments, of Law 14.005 (the right to the deed once 25% is paid, at a fixed price). See what a purchase agreement protects and lots in installments (in Spanish).

How is the deed for the lot signed?

When the trust closes, the trustee must deliver the assets, sign the necessary documents and cooperate with the registry filings (art. 1698). Enforceability against third parties depends on registration (art. 1893). In practice, the lot is deeded from the trustee to the adherent or to the beneficiary the contract names. The steps of the deed are in how to sign the deed for a lot (in Spanish). For a general view of the process and the cost, see the guide to buying land in Argentina and the cost of buying land in Argentina.

What happens if the developer doesn't finish or goes bankrupt?

If the developer is only the settlor: the trust's assets do not answer for the developer's debts, except for actions for fraud or ineffectiveness in bankruptcy (art. 1686).
If the trustee goes bankrupt: the trustee ceases to be trustee and a substitute is appointed under the contract or by the judge (arts. 1678 and 1679). The assets remain separate from the trustee's own estate (art. 1685).
If the trust cannot pay its debts: there is no bankruptcy. Unless the contract provides other resources from the settlor or the beneficiaries, a liquidation applies, handled by the judge, with a procedure based on the insolvency and bankruptcy rules (art. 1687). Where the buyer ranks among the creditors and beneficiaries depends on the case.
If the trustee encumbers the lots: the Code allows the trustee to dispose of or encumber assets if the trust's purposes require it, and any limits the contract provides must be registered and cannot be asserted against good-faith interested third parties (art. 1688). That is why you have to read the registry.

If the land is still in the developer's name and not the trustee's, the trust may own nothing. The title report shows this: see the title report and title of a lot.

Does consumer protection law cover me?

The law covers anyone who acquires goods as the final user, for their own benefit or that of their family or social group (Law 24.240, art. 1; Civil and Commercial Code, art. 1092). Someone who buys a lot to live on has a strong argument; someone who buys to resell or invest has a weaker one. The two rulings cited in this article concern buildings, not lots. In 2021 the National Civil Court of Appeals, in a case about a building with facts predating the current Code, held the trustees liable, with their personal assets, for construction defects. Without deciding whether the buyers were consumers, it held that art. 40 of the consumer law does not apply when the damage comes from breach of the main obligation of the direct provider, and decided under ordinary law. It is an open question, and the contract should be reviewed with a lawyer.

How does it differ from an installment lot plan?

In an installment plan, the buyer signs a purchase agreement and pays until the deed. In a fideicomiso, the buyer also takes on a structure: a trustee who holds title, a trust contract and sometimes a "cost-based" price, which is not fixed in advance. In a 2018 ruling, the National Civil Court of Appeals said that the risky and speculative (aleatory) nature is inherent to the "cost-based" model, and for that reason held that the clauses limiting the trustee's liability were not abusive, although it confirmed delivery of the unit. That is why it is worth knowing whether the price is fixed or open.

What should you check before signing?

The full trust contract: term, the trustee's powers, beneficiary clauses, and whether you are an adherent or a buyer by purchase agreement.
The title report, which should show the trustee's fiduciary capacity and the encumbrances (arts. 1684 and 1688).
Who the trustee is, their track record and earlier projects.
Whether the trust contract is registered (art. 1669).
The approval of the subdivision and the permits: see approved subdivisions: what it means and how to verify it (in Spanish).
Whether the price is fixed or "cost-based", and what happens if it rises.
Delivery and deed dates, and what triggers the deed.
Accounting at least once a year (art. 1675).
Whether there is a surety bond or completion guarantee: the Civil and Commercial Code does not require one (it only requires the trustee to hold civil liability insurance for damage caused by the trust's assets, art. 1685, which does not cover a failure to complete the project), and provincial and municipal subdivision rules are checked separately.
Clauses that limit the trustee's liability or penalize delays.
The terms for reservations and refunds.
If the lot is rural and the buyer is a foreigner, the status of Law 26.737: see Argentina's rural land law and foreigners.
That a notary or lawyer reviews everything before you pay.

Have lots in a fideicomiso gone wrong before?

In September 2024 the Río Negro press reported a criminal case in Bariloche for fraudulent administration, brought by a private complainant and linked to lots in a development structured as a fideicomiso. The defense argues there is no crime and that the dispute is civil. These are allegations, not convictions, and the article cited does not report its current status. For other fraud patterns see land scams in Argentina and their red flags, buying land from the owner in Argentina and how to verify a lot (in Spanish).

Sources

Civil and Commercial Code of the Nation, arts. 1666 to 1707 (fideicomiso), 1092, 1170 and 1669 (in Spanish): infoleg.gob.ar
Law 24.240, Consumer Protection (in Spanish): infoleg.gob.ar
Law 14.005 as amended by Law 23.266 (in Spanish): argentina.gob.ar
National Civil Court of Appeals, Chamber A, November 23, 2021, "Cereijo, Joaquín y otro c. Administración Gómez Vidal SA y otros" (in Spanish): rpba.gov.ar
National Civil Court of Appeals, Chamber L, November 3, 2018, cost-based real estate fideicomiso, commentary (in Spanish): javierquarantayasoc.com
Case over lot sales in a Bariloche fideicomiso, Diario Río Negro, September 12, 2024 (in Spanish): rionegro.com.ar