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Real Property Law
Huge improvements have been made in the real property system of El Salvador. However, some problems remain, mainly from inefficiencies of the cadastre system. That creates situations such as risk of double title.
A law on territory order or zoning is needed. The lack of a reliable judicial system creates uncertainty. Long judicial procedures discourage investments in real estate and make it difficult to execute real estate guarantees.
The real property lease law provides extensive protection to tenants, whereas landowners’ interests are often unprotected.
Securitization of real estate guarantees or titles is legally permissible but does not occur because of a lack of economic incentives. A bill on asset securitization is currently pending in the Legislative Assembly.
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