Laritza Diversent, Translator: BW, Translator: Haydee Diaz
This past November 2nd, the Cuban government published the Legal Decree
Number 288 that modified the "General Law of the Home", and permitted
the buying and selling of real estate between private parties, until
then it was prohibited by national legislation.
The new law took effect the 10th of November and generally permits
owners: Cubans and foreign permanent residents in the country to dispose
freely of their real estate.
However, it keeps as a legal requirement, the possibility of owning only
one family home and another located in a vacations or summer area. With
respect to the exchanges, donations, and trading, it establishes that it
can be formalized before a notary public of the municipality where the
real estate is located, prior to registration in the Property Registry.
The real estate registry started to operate in Cuba in the middle of the
19th century. In the 60s, it came to a standstill with the creation of
the General Housing Law, ending legal sales. It was reopened in 2003,
due to the requirements of foreign investment. Currently, it constitutes
an indispensable requirement to carry out transfers of ownership.
The legal decree also eliminated the existing permit that owners had to
obtain from the Municipal Director of the Home, to trade and donate
their real estate. Also, it repealed the method of losing a building
(confiscation), in cases of transfers of property, construction,
expansion, and illegal rehabilitation of houses.
Nevertheless remaining in force are the restrictions of freedom of
residence, which impose migratory rules for the capital and for zones of
high significance for tourism undergoing a special administrative
regimen, as is the case with Old Havana, in the capital, Veradero, and
Matanza.
The Legal Rules permit compensation in the case of a difference in the
values of the real estate that is traded, which was forbidden before.
Also, they reestablish the rights of heirs who are able, in every case,
to be awarded the housing, if and when they have no other property.
Previously, the beneficiary dweller acquired the property, otherwise,
the law recognized the cohabitant.
It maintains the confiscation for leaving the country, but it permits
family members to acquire the real estate for free. Before, the state
sold the confiscated houses, or some of them, to the co-owner or
cohabitant who could show they had lived for 10 years with the emigrant
owner. Also, they could not dispose of the housing during the four years
before their departure, a restriction that was eliminated.
It imposed the payment of taxes for the Transfer of Real Estate for
those who acquire the housing and for the sellers, through Personal
Taxes. The taxes on the purchase are based on 4% of the value of the
home and are paid in Cuban pesos.
In general, the new law eliminated a series of prohibitions that
prevented Cubans from exercising the powers of disposal arising from
their ownership. However, it keeps some restrictions pertaining to
freedom of movement within the national territory, which impedes the
full realization of this right.
On the other hand, it simplifies a series of bureaucratic obstacles.
However, the paperwork and the time it takes to exercise this right will
be hardly reduced. The state does not have the adequate infrastructure
and the conditions for the provision of legal services with the
efficiency and the quality that the new regulations require.
Translated by: BW, Haydee Diaz
November 14 2011
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