Population growth has led to the increase of the urbanization of the countryside, which is a problem if not regulated properly. This can lead to the creation of new urban cluster and the subsequent use of large areas of agriculture land. Therefore, it is necessary to have a strong and clear legal framework that can adequately regulate and protect the countryside and rural areas. This paper studies the Chilean public and administrative laws that regulates the creation of new rural residential plots and the mechanism that are employed by private for sale and construction of illegal rural residential plots and urban cluster on the countryside. For this purpose, it was initially identified the normative that allows the rightfully creation of new parcel and urban clusters, and the different governmental entities that have jurisdiction of this process. Later it was analysed the jurisprudence though the study of emblematic cases; two penal process, two civil cases, and two administrative proceedings. The main mechanism employed was the sale of rights to a percentage of the rural residential plot and/or the inadequate interpretation of a law used for the regularization of the site after five years construction. As a result of these irregularities, it was possible to observe that the urbanization projects are located on exclusive agriculture land and in some cases areas that where declare as risk areas. Therefore, this housing complex don’t have construction permits, municipal reception and unauthorize utilities. As a result, these urbanizations don’t possess the minimal required national standard, are considered as unauthorize urbanization, and cannot be register with the real estate registrar, therefore the individual doesn’t own the property.