GOOD FAITH POSSESSION OF REAL ESTATE IN BOLIVIA: DEFINITION AND PRACTICAL EXAMPLES

WHAT IS REAL ESTATE POSSESSION AND HOW IS IT APPLIED IN BOLIVIA?

Possession is the actual control that a person exercises over a property, with the intention of owning it or holding another real right over it. It can be exercised directly or through another individual. In Bolivia, the law presumes possession in favor of the person who currently controls the property, unless proven otherwise.

WHAT IS GOOD FAITH POSSESSION AND HOW DOES IT APPLY IN BOLIVIA?

Good faith possession occurs when the possessor believes they have acquired the property from its legitimate owner. Good faith is presumed by law, and anyone alleging bad faith must provide evidence. Moreover, only the initial good faith is considered — that is, the belief held at the time the property was acquired.

PRACTICAL EXAMPLES OF GOOD FAITH POSSESSION IN BOLIVIA: REAL CASES

CASE 1: PURCHASE OF PROPERTY WITH A FRAUDULENT DEED

María purchases a plot of land in Santa Cruz from a seller who provides her with an apparently legal deed. Over the years, she builds a home and pays taxes, unaware that the document was fraudulent. Later, the true owner appears and demands the return of the land.

Legal consequence: María qualifies as a good faith possessor, as she was unaware of the legal issue at the time of purchase. She may claim certain rights, such as compensation for improvements made to the property.

CASE 2: INHERITANCE AND CONTINUITY OF POSSESSION

Carlos inherits a house from his father, who had possessed it for more than 10 years without opposition. Although the property was never registered under his father’s name, Carlos continues living in it and performing acts of ownership.

Legal consequence: As a successor, Carlos can add his father’s possession period to his own, strengthening his claim if he seeks to formalize ownership.

CASE 3: BUILDING ON LAND WITH PERMISSION FROM A FALSE OWNER

Pedro receives authorization from someone claiming to be the property owner to build a house on vacant land in La Paz. Years later, he discovers that the person had no legal ownership.

Legal consequence: If Pedro acted in good faith, he may defend his possessory rights and seek compensation for the improvements made.

LEGAL LIMITATIONS AND RESTRICTIONS ON GOOD FAITH POSSESSION IN BOLIVIA

• Possession cannot be acquired over assets excluded from commerce (e.g., public property).
• Possession does not arise from mere detention (e.g., a tenant cannot claim ownership).
• Acts of tolerance do not confer possession (e.g., living in a house with the owner’s permission without intent to own).

Good faith possession in Bolivia protects individuals who acquire property without knowledge of prior legal issues. However, verifying the authenticity of documents and consulting a specialized attorney is always advisable. If you need to regularize your situation, our law firm can assist you through every stage of the legal process.