Unfair terms in real estate contracts in Peru: examples and what to do

When these rules apply

The unfair-terms rules on this page come from Peru’s Consumer Protection Code (Ley 29571). They apply when you buy from a real estate provider. Indecopi’s guide on real estate products and services defines it this way:

“Será considerado un proveedor inmobiliario, quien se dedique a la venta de inmuebles de manera habitual y con la finalidad de permanecer en el mercado inmobiliario, sin importar si se trata de una persona natural o jurídica.”

(A real estate provider is anyone who sells property habitually and intends to stay in the market, whether an individual or a company.)

If you buy from a private owner selling once, the same guide says “la norma que regula la compra es el Código Civil, en lo referido a las cláusulas del contrato en general” (the Civil Code governs the contract terms). This page does not cover that case.

The basics (what an adhesion contract is, absolute versus relative ineffectiveness) are in adhesion contracts and unfair terms. Here we go straight to real estate examples.

The general rule

A developer’s contract is almost always drafted by the developer. Article 49.1 says:

“En los contratos por adhesión y en las cláusulas generales de contratación no aprobadas administrativamente, se consideran cláusulas abusivas y, por tanto, inexigibles todas aquellas estipulaciones no negociadas individualmente que, en contra de las exigencias de la buena fe, coloquen al consumidor, en su perjuicio, en una situación de desventaja o desigualdad o anulen sus derechos.”

(In adhesion contracts, terms not individually negotiated that, against good faith, put the consumer at a disadvantage or cancel their rights are abusive and unenforceable.)

If the developer says you negotiated the clause, it has to prove it. Article 49.3 says the provider that claims this “asume la carga de la prueba” (bears the burden of proof).

Examples from the law: clauses that never count

Article 50 lists the “cláusulas abusivas de ineficacia absoluta” (abusive clauses with absolute ineffectiveness). The sample clauses on the left are written by us to show how each letter can look in a real estate contract. They are not quotes from real contracts.

One nuance on termination. Indecopi’s guide describes termination as “la decisión del proveedor de poner fin al contrato, como consecuencia del incumplimiento por la otra parte” (the provider’s decision to end the contract because the other party failed to perform), with admin fees and penalties “siempre y cuando hayan sido previamente informados por el proveedor” (only if the provider disclosed them in advance). A clause allowing termination because you stopped paying is not the same as one allowing termination at will.

On early repayment the law is clear twice over. If the developer itself finances the price, article 77.3(e) gives you the right to repay early, in full or in part, “sin que les sean aplicables penalidades de algún tipo o cobros de naturaleza o efecto similar” (with no penalties or similar charges of any kind). Indecopi’s guide repeats it: early repayment “no puede estar afecto al cobro de penalidades, multas o cobros de naturaleza similar” (cannot be subject to penalties, fines or similar charges).

Examples from the law: clauses that depend on the case

Article 51 gives an open list of clauses that are abusive “atendiendo al caso concreto” (depending on the circumstances). Three fit the sector well:

• Currency change. “The price may be restated in dollars at the developer’s choice.” Letter (f) covers clauses letting the provider “cambiar unilateralmente en perjuicio del consumidor el tipo de moneda con la que fue celebrado el contrato” (change the contract currency unilaterally, to the consumer’s detriment).
• Hurdles to complaining. “All claims must be filed in person at head office, after paying for an inspection.” Letter (d) covers “cargas económicas o procedimientos engorrosos para efectuar quejas ante el proveedor” (fees or cumbersome procedures to complain) or to get a faulty product repaired.
• Disproportionate obstacles. Letter (a) covers any clause imposing “obstáculos onerosos o desproporcionados” (costly or disproportionate obstacles) to exercising your contract rights.

Examples from Indecopi’s guide

Indecopi’s guide does not use the word “abusive”, but it sets rules that clash with common clauses:

• Changing what was agreed. “El proveedor no puede modificar unilateralmente las condiciones pactadas sin consentimiento del consumidor.” (The provider cannot change the agreed terms unilaterally without the consumer’s consent.) A clause letting the developer change finishes, area or terms at will goes against that rule.
• Surprise deductions. “El proveedor debe informar previamente al consumidor sobre los montos que serán retenidos bajo el concepto de gastos administrativos o penalidad en caso de incumplimiento, precisando a cuánto ascienden.” (The provider must tell the consumer in advance how much it would withhold as fees or penalties, and state the amount.) Article 78.1(h) also requires the contract to state the “supuestos en los cuales se aplican penalidades y el monto de las mismas” (when penalties apply and how much they are).
• Claims after handover. The guide says “los errores o defectos pueden ser advertidos al momento de la recepción del inmueble por parte del consumidor, o de manera posterior” (defects can be spotted at handover or later), and that the provider “no puede alegar que los defectos no le fueron comunicados, como causal de exoneración de responsabilidad administrativa” (cannot argue it was not told about the defects to escape administrative liability).

Clauses that are on no list

The lists are not the end of it. A clause that is not in article 50 or 51 can still be abusive if it meets the article 49.1 definition. Three cases where this is our reading, not a written rule:

• Keeping your money when the developer fails. Article 77.2(f) says that in off-plan sales the provider must return “el íntegro de los pagos adelantados efectuados por todo concepto a sola solicitud del consumidor” (all advance payments, at the consumer’s simple request) if the sale is not carried out for reasons attributable to it. A clause saying “the reservation payment is non-refundable in all cases” clashes with that. Our reading is that it falls under article 50(h), which makes abusive the clauses “contrarias o violatorias a normas de orden público o de carácter imperativo” (contrary to public-order or mandatory rules).
• The handover record as a waiver. “Once the record is signed, the buyer waives all claims.” Article 79 gives you the right to state your approval or objection in writing at handover, and the guide says defects can be spotted later. Our reading is that such a waiver clashes with articles 50(e) and 50(f).
• A delivery date the developer moves on its own. Article 78.1(g) requires the contract to state “plazo, fecha o condiciones expresas de entrega del inmueble” (the delivery period, date or express conditions). A clause letting the company push that date back at will is not on the lists. Our reading is that it can be abusive under article 49.1. What you can demand when delivery is late is in what happens if a developer is late delivering your home.

What to do

Before you sign. Get the full contract and read it against the examples above. If a clause worries you, ask in writing for it to be changed. Clauses specific to off-plan purchases (risk, area, price adjustments) are in off-plan purchase contracts.

If you already signed. An abusive clause is unenforceable (art. 49.1). What happens to the rest of the contract is explained in adhesion contracts and unfair terms. Complain to the company in its libro de reclamaciones (complaints book) and quote the clause and the letter of the law. If that does not solve it, go to Indecopi. Article 52.1 says “las cláusulas abusivas ineficaces a que se refiere el presente Código son inaplicadas por la autoridad administrativa” (the administrative authority disapplies abusive clauses), and 52.2 leaves the court or arbitration route open. The complaint channels for real estate are in our guide to buying a home in Peru, and the step by step in how to file a complaint with Indecopi.

What this page does not cover

We did not review Indecopi decisions or court rulings on real estate contract clauses, or the fines a developer can face for using them. We do not cover purchases from private sellers (the Civil Code governs), rental contracts, bank mortgages, or the Techo Propio and Mivivienda programmes. Reservation payments, arras, late delivery and the handover record each have their own pages.