WHAT IS EVICTION AND WARRANTY IN BOLIVIA?
One of the seller’s obligations under a purchase agreement is to provide a warranty against eviction of the asset subject to the contract. This article explains in detail the legal framework for eviction and warranty in Bolivia.
Eviction and warranty liability in Bolivia means that, at the time of executing the contract, the seller guarantees the buyer’s legal possession of the property. If a third party asserts a claim or a preferential right, the seller is obligated to reimburse the purchase price and protect the buyer’s ownership and enjoyment of the property, provided the buyer acted in good faith. According to Professor Manuel Osorio, eviction is the loss or disturbance suffered by the purchaser of an asset—or a real right over it—due to legal defects predating the acquisition. If the transaction was onerous, the transferor is liable for the resulting harm or interference.
Regarding the obligation of eviction and warranty in Bolivia, Articles 625 and 626 of the Bolivian Civil Code distinguish between total eviction and partial eviction. Below, we explain each concept.
WHAT IS TOTAL EVICTION?
In line with Osorio’s definition, Bolivian law considers total eviction to be the universal, complete loss or disturbance suffered by the acquirer of an asset—or a real right over it—due to pre-existing legal defects.
According to Juan Pablo Aburto and Íñigo de la Maza in their article “Lack of Legal Conformity and Buyer’s Protection,” total eviction may occur in the following situations:
- The property sold belonged to another person, and the rightful owner claims it.
- The property is subject to a mortgage unknown to the buyer or one that the seller was obliged to discharge but failed to, resulting in the mortgage holder taking possession.
- The property is subject to a repurchase agreement or a resolutory condition, such as when the seller owes part of the purchase price and the previous owner seeks to rescind the sale, reclaiming the asset through judicial ruling for a cause predating the sale.
Article 625 of the Bolivian Civil Code provides that a buyer suffering total eviction may demand the seller to compensate for damages, reimburse the purchase price, and cover the legal costs and expenses incurred in the eviction proceedings.
WHAT IS PARTIAL EVICTION?
WARRANTY AGAINST HIDDEN DEFECTS IN BOLIVIA
Among the seller’s obligations is the warranty against defects, which requires them to address faults in the asset until it meets contractual, legal, or customary standards.
For the warranty to apply, the following conditions must be met:
- The defect must be of a certain nature and severity.
- The defect must be hidden.
- The defect must have existed prior to the sale.
- The defect must have been unknown to the buyer at the time of purchase.
Our law firm provides specialized legal services in eviction, warranty, and contract enforcement cases. Contact us today for professional assistance.
Frequently Asked Questions (FAQs)
What is eviction in a purchase agreement?
It is the total or partial loss of ownership rights over an acquired asset due to a pre-existing right of a third party, recognized by a court.
What rights does the buyer have in the case of total eviction?
The buyer may demand reimbursement of the purchase price, compensation for damages, and payment of all legal costs incurred in the process.
When does the warranty for hidden defects apply?
It applies when the defect is serious, existed before the sale, was not visible, and was unknown to the buyer at the time of the agreement.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
