In March, Decree 332/2001 implemented the Programmed Savings Contract and Right of Habitation.

The decree establishes a financing mechanism by which individuals interested in buying real-estate for housing purposes can open a special savings account in a financial organization for between six months and three years, in order to save the initial down payment. During this time they can inhabit the real estate, while paying rent. Upon completion of the programmed savings contract, by using the down payment the lessee has the option of buying the property.

The programme has been welcomed by the financial sector and the construction industry, both of which believe that the decree will help boost the property market.

For further information on this topic please contact Luis Carlos Neira at Holguin Neira y Pombo Abogados by telephone (+57 1 312 2473) or by fax (+57 1 312 2513) or by e-mail ([email protected]).

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