7 February, 2020

LatinAlliance El Salvador, Lawyers and Notaries, notifies clients and friends of the following relevant news:

AMENDMENT TO ARTICLE 100 OF THE MUNICIPAL CODE

Last month, the Legislative Assembly approved Decree 542, which modifies article 100 of the Municipal Code, in the following sense:

In the Real Estate and Mortgage registries of the Republic, no document will be registered in which a transfer or encumbrance appears on real estate, in any title whatsoever, if it is not presented to the Municipal Solvency registrar, on the object or real estate of transfer or encumbrance.

The Municipal solvency must be in force at the time of the presentation of the legal instrument in the respective Registry.

The deeds in which a commercial company is constituted, or in which said deeds are modified or in which the company is dissolved, will not be registered in the Registries of Commerce either, without presenting to the Registrars of Commerce the municipal solvency of the partners or of company, as the case may be.

The reform has already entered into force and is enforceable as of February 06, 2020.

For more information, contact us at LatinAlliance El Salvador, Lawyers and Notaries, to the following emails: msutter@latinalliance.comcosta@latinalliance.convillalobos@latinalliance.co