The Federal Executive Power amended the Federal Government's real estate administration regime. Decree No. 1382/2012 created the State Assets Administration Agency, which shall be in charge of the administration, control and disposition of those real estate assets.
1. Decree No. 1382/2012
Through Emergency Decree No. 1382/2012, published in the Official Gazette on August 13, 2012 (the "Decree"), the Federal Executive Power introduced substantial amendments to the Federal Government's real estate administration regime.
The Decree dissolved the National Assets Administration Office (Organismo Nacional de Administración de Bienes) and created (i) the State Assets Administration Agency (Agencia de Administración de Bienes del Estado) (the "Agency"), as a decentralized entity within the Presidency of the Cabinet of Ministers and (ii) the National Real Estate Registry (Registro Nacional de Bienes Inmuebles) (the "Registry"), within the Agency, which shall act as its implementing authority.
According to the Decree's whereas, the new regime seeks to establish an integrated system of administration and disposition of the State's public and private property, with the exclusion of those real estate assets pertaining to the cultural, historic or natural National State heritage. The Decree further indicates that the new regime will allow for the overcoming of the current dispersion of real estate assets in different jurisdictions and will foster a better fulfillment of the territorial planning policy established in the Strategic Territory Plan.
2. The Agency
Within the Agency's powers, the following are worth mentioning:
- To execute policies, regulations and procedures for the disposition and administration of real estate assets of the Federal Government, whether in use, under a concession and/or withdrawn.
- To intervene in any management measure that implies the execution of the following acts –whether for free or for good and valuable consideration– in connection with the Federal Government's real estate assets: acquisition or sale; constitution, transfer, modification or termination of other personal or real estate rights; lease; transfer or assignment of use.
- To dispose –subject to the prior applicable authorization according to the regulations in force– and administrate real estate assets withdrawn from use, declared as unnecessary and/or without allocation.
- To control real estate assets granted under concessions to public utilities, in coordination with the regulatory agencies.
- To administrate the Registry and monitor its permanent update.
- To propose the Chief of Cabinet Office the withdrawal of the Federal Government's real estate assets in use and under a concession, when a prior audit reports their lack of specific allocation, undue use, under-utilization, or unneeded status.
The Decree also amends the powers of the Railways Infrastructure Administration State Company (Administración de Infraestructuras Ferroviarias Sociedad del Estado), as established in section 3 of Law No. 26,352, in order to provide the Agency –and take away from the above State company– with the power to administrate the real estate assets withdrawn from railway exploitation.
In connection with the contracts related to State assets currently in force, the Decree establishes that they will remain in force up to its termination, and shall not be renewed or extended as such power has been granted to the Agency. Within 90 business days as of the date of the Decree's entry into force, all bodies pertaining to the National Public Sector must inform the Agency of any contracts in force and provide the supportive documentation.
3. The Registry
The primary purpose of the Registry is to admit, register and write-off the Federal Government's real estate assets.
Within 90 business days of the date of the Decree's entry into force, the bodies pertaining to the National Public Sector shall inform the Registry of the existence of real estate assets under property of the Federal Government, as well as their condition of use and personnel allocated to them, in accordance with the regulations to be issued by the Agency. That information will serve as the basis for the elaboration of the Registry's database.
4. Conclusions
The Decree provides the Agency with broad powers regarding administration, control and disposition of the Federal Government's real estate assets, in order to establish a unified and integrated system. It will be necessary to follow the exercise of these powers to assess the way that they will be rendered compatible with the particularities of the relevant concession contracts, in order to properly safeguard vested rights.
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