Bill
The National Executive Branch has submitted to Congress a bill entitled the “Private Property Inviolability Act”, which proposes substantial reforms in matters of expropriation, evictions, rural land, wildfires, and real estate registries. It is one of the most comprehensive legislative initiatives in recent years regarding property rights.
Below is an overview of the proposed reforms:
Chapter I – Reform of the Expropriation Regime (Law No. 21,499)
Stricter concept of public utility
The bill requires that declarations of public utility be interpreted restrictively and identify, in a specific and concrete manner, the purpose pursued. In addition, expropriation will only be admissible when it is suitable, necessary, and proportionate, and when no less harmful means are available to achieve the objective. This three-pronged proportionality test significantly raises the threshold of justification required from the State.
Compensation: market value and loss of profits
The reform expressly incorporates loss of profits (loss of earnings) as a compensable item, provided that it is a direct and immediate consequence of the expropriation, is supported by objective evidence, and does not result in duplication of damages.
The value of the asset will be determined as of the date prior to any act, fact, or public announcement related to the expropriation, thereby closing a gap that historically affected expropriated parties. Such value will be adjusted by the Consumer Price Index (CPI) plus a reasonable interest rate until full payment is made.
Ownership will not be transferred without prior full payment of compensation. The bill expressly enshrines the “prior payment” rule in statutory law.
Indirect (regulatory) expropriation
Article 51 is amended to include indirect or regulatory expropriation. This applies where the State adopts measures that, without formally transferring ownership, substantially deprive the owner of the use, enjoyment, or disposal of the asset in a non-temporary manner, producing effects equivalent to expropriation. This constitutes a legislative adoption of the U.S. “regulatory taking” doctrine.
Temporary occupation
Extraordinary temporary occupation is limited to a maximum of 60 days, extendable once for up to an additional 30 days under objectively verifiable exceptional circumstances (such as health emergencies, armed conflicts, or natural disasters). It may not be repeated on the same grounds.
Chapter II – Reform of the Eviction Process (Civil and Commercial Procedural Code and Civil and Commercial Code)
Summary proceedings and immediate eviction of trespassers
All eviction proceedings will follow summary procedures. The most significant change is the introduction of immediate eviction against trespassers: the court may order the immediate restitution of the property within 5 days, subject to a sworn guarantee, where the claimed right appears prima facie valid.
Judicial inspection within 72 hours
In cases such as non-payment, property damage, abusive use, or trespassing, the court must order a judicial inspection within 72 hours of the first ruling, with the participation of the Public Defender and identification of occupants.
Writ of eviction: new powers
New Article 686 bis authorizes court officers to request police assistance, enter premises, break locks, and appoint a custodian of movable assets, even if the property is vacant. It also allows actions to be carried out on non-business days and hours.
New Article 1222 of the Civil and Commercial Code
For residential leases, landlords must formally demand payment from tenants granting a minimum period of 3 calendar days (currently 10). Once this period expires, or the lease is terminated for any reason, the tenant must return the property and the landlord may initiate summary eviction proceedings.
Chapter III – Informal Settlements Regime (Law No. 27,453 – RENABAP)
The bill substantially amends Law No. 27,453 by eliminating expropriation as a mechanism for regularizing informal settlements. While maintaining the objective of socio-urban integration, it shifts toward alternative legal tools such as administrative adverse possession, urban development agreements, and declarations of abandonment.
The provisions establishing the state land trust are repealed (Sections 3, 4, 5, 7, 11, 14 bis, 15, and 18). Ongoing proceedings will continue under the previous regime.
Chapter IV – Rural Land: Foreign Ownership (Law No. 26,737)
The most significant reform restricts the scope of prohibited subjects: limitations on foreign ownership will primarily apply to foreign states and their entities (including state-owned enterprises and sovereign funds), rather than to private foreign individuals or entities.
Controls over private foreign investors are substantially relaxed, although the prohibition against the use of intermediaries as a means of unlawful simulation remains in force. Exceptions require demonstrating that the transaction does not pose risks to national security, defense, or sovereignty.
Chapter V – Fire Management (Law No. 26,815): Native Forests
The prohibition on changing land use in areas of native forests affected by fires is maintained, in accordance with land-use classifications (Law No. 26,331). Additional obligations regarding prevention, investigation of causes, and environmental restoration are introduced, while prior restrictions on non-native forests are eliminated.
Chapter VI – Modernization of the Real Estate Registry (Law No. 17,801)
The reform enables the digital filing of registrable documents using digital signatures (Section 288 of the Civil and Commercial Code and Law No. 25,506), and allows the use of advanced cryptography, distributed ledger technologies, and blockchain for property registration, ensuring immutability and permanence.
Among the institutional innovations, the following are created:
- Federal Council of Real Estate Registries: to harmonize provincial registries
- Federal Digital Network for Injunction Records: enabling nationwide consultation of injunctions
- Single Federal Real Estate Window: a web portal for requesting certificates, reports, and copies from any registry remotely
If approved by both chambers of the Argentine Congress, the law will enter into force the day following its publication in the Official Gazette, except for Chapter VI, which will become effective 180 days after publication.
Conclusions
The three-pronged proportionality test aligns Argentine law with European and U.S. standards, opening new avenues for challenging expropriations.
The inclusion of loss of profits and retroactive valuation prior to public announcement are key changes for investors in real assets.
Regulatory expropriation is a novel concept in Argentine law and raises questions regarding its scope in environmental, urban planning, and price control regulations.
The reduction of the notice period in residential evictions (from 10 to 3 days) and the introduction of immediate eviction against trespassers mark a paradigm shift in landlord-tenant relations.
The reform of Law No. 26,737 is particularly relevant for investment funds and foreign investors in the agricultural sector, shifting the focus from the nationality of capital to the state nature of the investor.
The digitalization of the Real Estate Registry and the Single Federal Window represent high-impact tools for real estate transactions and structured finance.
