Thursday, July 16, 2009

July 1
We finalized the price for the land this morning and spent the rest of the day arranging for a wire transfer of the money. I took two trips to Los Organos where the closest fax machine was available, several international phone calls and several e-mails to get things done. George spent most of the day with us but also with the lawyer drawing up the contract and getting copies of the supporting documents. He didn't return to El Nuro until about 10:30 p.m.
July 2
I confirmed that the money was successfully transferred into our account in Peru and then took off for Talara to get the cashier's check from the bank. We then came back to the lawyer's office to finalize the contract. It is customary to have a private contract of sale between the seller and buyer and a separate contract reflecting a lower price (and therefore incurring lower taxes) that becomes public record. There is a risk of discovery in that Georg will have to prove to the tax authority how he came by the income from the sale. We opted to have only one contract, totally above board, not wanting there to be any hassles or confusion between the authorities and the gringos.
We then went over to the notary who certified the contract. I gave Georg the check and the deal was done. We now have possession of an acre of land in Peru. In the documentation we have a fifteen year history of the land and its possessors. Ten years is the landmark time frame as it is generally considered enough to claim ownership. In the years to come, we will have to be able to prove possession of the land by asking for an inspection, paying taxes, maintaining photos and a presence.

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