Buying Real Estate in Nicaragua
Buying real estate in Nicaragua is a relatively straight-forward process. Foreign buyers have many opportunities for investing in property in this Central American country, and the buying process takes a little over two months to complete.
Attorneys and Real Estate Agents
Though not necessary, it is recommended to hire a real estate agent when buying real estate in Nicaragua. This person should ideally be fluent in Spanish and in your native language. Some of the property titles can be disputable at times, so an attorney is helpful if this case should arise. They also help buyers with necessary research of the property.
Real estate agents can be helpful in this procedure, but are not necessary.
Rules, Regulations and Restrictions
There are no restrictions on the foreign ownership of property in Nicaragua. They have the same rights as the citizens.
However, foreign buyers should pay careful attention to factors of these transactions in certain areas of the country to make sure they are not being taken advantage of, and Nicaraguan attorneys are helpful for this potential dilemma.
General Process
The first step is to settle on a property, and make an offer to the seller. The buyer and the seller must then go to a notary, who will prepare the promesa de venta, the promise to sell. This must be signed by the buyer, seller and notary. The buyer must put down a deposit to secure the property, which is 10% of the final purchase price.
The notary will then prepare a testimonio, which is a copy of the promesa de venta for the purpose of placing in public records. The buyer’s attorney should research regarding the property title and anything that might hinder their ownership. The seller must provide several documents, including the tax registrations, title deeds, tax information and other necessary paperwork.
If all of the conditions are met for the promesa de venta, then the notary will prepare an escritura, which is a deed. At this time, the buyer must also transfer the rest of the money to the seller. The deed is then to be signed by the buyer, seller and notary. The notary will make a copy of this, which will have to be approved by the property registry, and the property and documents will be appraised by this bureau. They will then issue an appraisal certificate, and submit this to the IRS.