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Real Estate Investment Alert - August 2026
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Registry Court Clarifies That the Precedent on Concealed Urban Development Also Applies to Communal Lands
On August 7, 2026, a clarification to the binding precedent establishing the inadmissibility of subdivisions of rural properties located in non-cadastral areas where they conceal urban developments was published in the Official Gazette El Peruano. The Registry Court has now established that this precedent also applies to subdivisions of communal properties.
The existence of a concealed urban development must be determined based on a joint assessment of the communal agreement, the technical documentation submitted, and the report issued by the graphic database area. Accordingly, where these elements evidence the creation of multiple lots, streets, passageways, or circulation routes characteristic of an urban development, the subdivision cannot be processed under the rules applicable to rural or communal properties. Instead, the property must undergo the urban development approval procedure before the competent district municipality. Without such approval, the subdivision will not proceed.
The precedent was approved at the 323rd Plenary Session of the Registry Court held on July 20, 2026, and its criteria were reflected in Resolution No. 3498-2026-SUNARP-TR dated July 31, 2026. In that case, the Court reviewed an application for the subdivision of land belonging to a peasant community and identified a large-scale subdivision displaying characteristics of an urban development project. The proposed acts involved the creation of lots and streets characteristic of an urban development.
Based on the foregoing, the Registry Court concluded that, where a subdivision conceals an urban development, the authority to approve it lies exclusively with the municipalities. Neither the property owners nor cadastral verifiers may unilaterally approve such subdivisions. However, the Court also clarified that not every division of communal land is urban in nature. Each case must therefore be assessed comprehensively, taking into account the communal agreement, the technical documentation submitted, and the physical configuration of the territory.