Navigating the Final Walkthrough in Cusco & the Sacred Valley: Your Pre-Closing Checklist Before Signing the 'Escritura Pública'

For expats investing in the vibrant real estate market of Cusco and the Sacred Valley – whether it's a rustic plot in Urubamba, an ancient home in Ollantaytambo, or a bustling AirBnB in the Cusco historic center – the final walkthrough is more than just a formality; it's your last, critical defense. Unlike more regulated markets, Peru’s real estate landscape demands vigilance, particularly when acquiring rural land or properties with tourism investment potential. Before you commit to signing the Escritura Pública (public deed) and officially take possession, a comprehensive inspection ensures that what you're buying is exactly what you agreed upon, free from unexpected complications, and ready for your vision.

This detailed guide provides a robust checklist tailored to the unique challenges and opportunities of real estate in this revered Andean region.

Why a Final Walkthrough is Crucial in Peru’s Real Estate Market

In many international real estate transactions, the final walkthrough is often a quick check for general cleanliness and obvious damage. In Peru, and especially in the Sacred Valley, its importance is amplified due to several factors:

• "As-Is" Transactions & Limited Recourse: While contracts can specify conditions, consumer protection laws are less robust than in some Western countries. Once the Escritura Pública is signed, reversing the sale or seeking compensation for undisclosed issues can be arduous and expensive.
• Infrastructure Variability: Utilities (water, electricity, sewage) can be less reliable or have different standards than what expats are accustomed to. A thorough check ensures functionality and identifies potential hidden costs, especially in rural areas where municipal services might be limited or absent.
• Boundary & Land Use Ambiguities: For rural plots in areas like Urubamba or Calca, historical land use, informal agreements, and less precise cadastral mapping can lead to boundary disputes if not meticulously verified against the partida registral (property registration document) and its associated planos (survey plans).
• Archaeological & Cultural Heritage Impact: Proximity to ancient sites (common across the Sacred Valley and Cusco) means stringent building codes and restrictions enforced by local municipalidades (municipalities) and the Ministry of Culture, which unauthorized construction can violate.
• Expedited Possession: Often, sellers expect quick closing, but rushing this final inspection can lead to costly oversight.

Your Comprehensive Final Walkthrough Checklist

Engage your trusted local real estate agent, lawyer, and ideally, a local builder or architect who understands regional construction practices, especially for properties intended for renovation or development.

I. Property Condition & Fixtures (For Built Properties & Land Improvements)

1. Exterior Assessment:

   • Roof: Inspect for loose tiles (tejas), leaks, or obvious damage. Note the common use of teja andina (Andean tile) and traditional clay tiles, which have specific maintenance needs, especially before or after the rainy season.
   • Walls & Foundation: Look for cracks, dampness, or signs of settling, especially critical in seismically active regions like Cusco. Pay attention to traditional adobe walls in rural homes, which have unique structural and maintenance characteristics.
   • Drainage: Confirm gutters, downspouts, and general property grading direct water away from the structure. Effective drainage is crucial, as intense rainfall during the wet season (typically November to March) can cause significant issues.
   • Fencing & Gates: Ensure all perimeter fencing (e.g., traditional stone walls, adobe walls, wire fences) is intact and secure, especially for agricultural land or properties requiring security.
   • Driveways/Access Roads: Verify the condition of any private access roads or paths. Are they passable in all weather, particularly during the rainy season when unpaved roads can become challenging? Is the access legally documented as an easement?

2. Interior Assessment (If Applicable):

   • General Cleanliness & Agreed-Upon Repairs: Confirm the property is clean and vacant (unless agreed otherwise). Verify all repairs specified in your purchase agreement have been completed to a satisfactory standard.
   • Walls, Ceilings, Floors: Check for new cracks, water stains, mold, or pest activity (termites, rodents, especially common in older structures or rural settings).
   • Windows & Doors: Test functionality of all windows and doors. Check locks, hinges, and ensure they close securely. Security grates (rejas) are common in urban and rural areas – ensure they are sound and properly installed.
   • Plumbing Systems:
     • Run all faucets (hot and cold), flush all toilets.
     • Check for leaks under sinks, around toilets, and in shower areas.
     • Assess water pressure – it can vary significantly, especially in rural areas or older buildings in Cusco's historic center.
     • Verify water heater (terma) functionality.
     • For rural properties, understand if the water source is municipal, a private well, or communal irrigation (acequia), and verify its condition and legal rights (derechos de agua). If a septic system is present, inquire about its last service and condition.
   • Electrical Systems:
     • Test all light switches and power outlets. Consider bringing a small outlet tester.
     • Check the main breaker box (caja de luz) for any tripped breakers or signs of unusual or unsafe wiring.
     • In older properties (common in Cusco historic center or traditional Sacred Valley homes), wiring can be outdated. Look for exposed wires or temporary fixes. Voltage stabilizers are often necessary due to power fluctuations in the region to protect electronics.
   • Appliances (If Included): If major appliances (stove, refrigerator, washing machine) are part of the sale, test each one for full functionality.
   • Security Systems: If present (alarms, cameras), test them. Confirm codes or transfer procedures.

II. Land & Boundaries (Paramount for Rural & Investment Properties)

This section is particularly critical for properties in Urubamba, Ollantaytambo, Calca, and other Sacred Valley rural locations, where land boundaries can be less clearly defined than urban plots.

1. Physical Boundary Verification:

   • Walk the entire perimeter of the property.
   • Identify all boundary markers (hitos or natural features) and ensure they align with the planos (survey plans) in your partida registral. Do not skip this step – boundary disputes are a common issue that can lead to significant legal challenges.
   • Look for any signs of recent encroachment by neighbors (new fences, plantings, structures).

2. Access & Easements:

   • Verify legal and physical access to the property. Is it via a public road, or a private easement? If an easement, ensure it is clearly documented in your property records and not obstructed.
   • For rural properties, confirm year-round access, considering the rainy season's impact on unpaved roads.

3. Water Rights & Sources:

   • If the property includes agricultural land, verify the water rights (derechos de agua) are legally registered and the condition of irrigation canals (acequias), wells, or other water sources. This is a complex but absolutely vital area in Peru for agricultural potential and general water supply, requiring thorough legal diligence.

4. Utilities Hookups:

   • Confirm the physical location and condition of electricity poles, water meters, and sewage connections to the property line. For rural properties, often these are rudimentary or require significant investment to connect to services.
   • Cellular signal strength can vary greatly throughout the valley; check coverage in different areas of the property.

5. Environmental Scan:

   • Look for any obvious environmental hazards, signs of pollution, erosion, or problematic flora/fauna.

III. Documentation & Legal Checks (Final Re-confirmation)

1. Permits & Licenses:
   • For any new construction or significant modifications since your initial offer, ensure you have copies of the licencia de construcción (building permit) and conformidad de obra (occupancy permit or certificate of completion). This is paramount for properties near archaeological sites or in regulated historic centers like Cusco and Ollantaytambo. Unauthorized construction can lead to demolition orders, substantial fines, and legal headaches.
2. Seller's Belongings:
   • Confirm the property is clear of all the seller's personal belongings, except those explicitly agreed upon to be included in the sale. This avoids disputes later.
3. Outstanding Bills (Final Scan):
   • While your lawyer and notary will verify this, a quick visual check for any utility disconnection notices or obvious arrears (e.g., property tax notices) posted on the property can serve as a final red flag.

IV. Safety Considerations During the Walkthrough

1. Bring Local Expertise: Always conduct the walkthrough with your real estate agent, and ideally, your local lawyer or a trusted interpreter. Their insights into local customs, potential issues, and legal nuances are invaluable.
2. Appropriate Attire: Wear sturdy shoes, especially if inspecting rural land or properties with uneven terrain.
3. Be Thorough, Not Rushed: Do not allow the seller or agent to rush you. Take your time, inspect every detail, and ask all necessary questions.
4. Document Everything: Take photos and videos of any issues, even minor ones. This provides a clear record for negotiation or future reference.
5. Communicate: Clearly articulate any concerns or questions immediately to your agent and lawyer.

Necessary Tools for Your Final Walkthrough

• Smartphone/Camera: For documenting issues with photos and videos.
• Flashlight: Essential for dark corners, basements, attics, and checking under sinks.
• Small Electrical Outlet Tester: Quickly verifies if outlets are live and properly wired.
• Tape Measure: Useful for verifying dimensions, especially for specific furniture placement or land boundaries.
• Copy of Sales Agreement & Partida Registral: To cross-reference agreed-upon inclusions, repairs, and registered land specifics.
• Notebook & Pen: For making detailed notes.
• Your Trusted Local Expert(s): Invaluable for navigating local nuances and providing on-the-spot advice.

Local Context/Warning Section: Unique Peruvian Challenges

• Land Registration Accuracy in the Sacred Valley: While the partida registral from SUNARP (Superintendencia Nacional de los Registros Públicos) is the official legal record, historical and informal land use in rural areas can sometimes lead to discrepancies with the physical reality on the ground. The final walkthrough, supported by a professional surveyor if needed, is your last opportunity to visually confirm that the property's physical boundaries align with its registered description.
• Restrictions Near Archaeological Sites & Protected Areas: While the Sacred Valley is not generally classified as a "border zone" subject to specific constitutional restrictions for foreigners, properties very close to major archaeological sites (e.g., Ollantaytambo, Pisaq), natural protected areas, or even specific sectors near Machu Picchu, can have stringent development and ownership regulations. Your lawyer must thoroughly vet all such restrictions before the final walkthrough, ensuring all necessary waivers or permits are in place.
• Construction & Permit Issues Near Ancient Sites: The Ministry of Culture (formerly INC - National Institute of Culture) and local municipalidades have extremely strict regulations, especially in archaeologically rich areas like Ollantaytambo, Pisaq, Chinchero, and the Cusco historic center. Unpermitted construction, even minor additions, can lead to substantial fines, demolition orders, and protracted legal headaches. A final inspection must confirm that all existing structures comply with permits and that no unauthorized work has occurred since your initial offer.
• Infrastructure Reliability: Be prepared for varying levels of infrastructure. Water pressure can be lower in rural areas or during peak times. Power surges are common, making voltage stabilizers a wise investment for electronics. Sewage systems might be septic tanks in rural areas, requiring regular maintenance and proper design.
• Cultural Heritage Overlay: Building codes in historic areas (Cusco, Ollantaytambo) dictate aesthetics, materials (e.g., requiring traditional stone, adobe, or teja roofs), and even permissible uses to preserve the cultural landscape. Ensure any existing structures or your future plans align with these, as gaining approval for modern designs can be challenging.

⚠️ Warning: Zoning and Cultural Heritage Rules. Properties in the Cusco and Sacred Valley region are often subject to rigorous zoning regulations and cultural heritage rules enforced by the Municipalidad (Municipality) and the Ministry of Culture. This applies particularly to properties within or near archaeological parks, historic city centers, and designated cultural landscapes. Restrictions can include building height limits, mandated traditional materials, architectural styles, and even limits on permissible commercial activities. Always verify the Plan de Desarrollo Urbano (Urban Development Plan) of the specific district and consult with cultural heritage authorities before any development or renovation, as non-compliance can lead to severe penalties, including demolition and hefty fines.

The final walkthrough in Peru is your critical opportunity to protect your investment and ensure a smooth transition of ownership. By meticulously following this comprehensive checklist, informed by local context, you significantly reduce the risk of unforeseen issues, allowing you to move forward confidently with signing the Escritura Pública and embracing your new property in the majestic Cusco and Sacred Valley.

For expert guidance through every stage of your property acquisition in this unique region, visit us at CuscoRealEstate.com.