You do not have to be a Nicaraguan resident to buy property here. But due to previously mentioned property conflicts and tricky title histories, it is very important to find a reputable realtor and lawyer before attempting to purchase property in Nicaragua. First-time buyers especially are ill-advised to go it alone and try to buy property directly from an owner: this could potentially create future problems if someone else also claims to be the rightful owner of the same property, or if you don’t follow all the necessary steps to purchase the property correctly and register it in your name.
Several things to consider when looking at properties are:
1) Make sure there are no pending liens or court cases against the property.
2) Double check the location and boundaries of the lot in the Registry’s Catastro Office.
3) Make sure the seller is in fact the lawful registered owner of the land or home you are attempting to purchase. Make sure there aren’t multiple deeds to the same property.
4) Make sure all back property taxes have been paid, or you will assume that burden.
After you sign on the dotted line, you will receive a copy of the testimony of the deed, which acts as a short-term receipt of sale until the property is registered in your name. An inspector for the municipality will then come out to assess your property value for tax purposes (the assessment is always well under the market value of your house).
After the property is registered in your name, which may take a couple weeks, you will receive the original copy of the deed, which should be secured in a safe place.
U.S. title insurance is available through First American, but it is not always necessary. Ask your realtor if he or she recommends it in your particular case.
Specific Steps To Buying and Registering Land:
Find a reputable real-estate agent and lawyer, of which there are many.
A. Identify the property of your choice, usually by the recommendation of a friend or a local real estate agent (who earns a negotiable commission, usually around 7%). Be wary of property that was confiscated by the government in the 1980s.
B. At this point, you may either hire a local attorney or proceed on your own to ask the seller for a copy of the property’s title (escritura de propiedad), and the municipal government for evidence that it has no liens on it (libertad de gravamen), and its "certificado catastral." Often, owners are hesitant to provide copies of titles. In such cases, you may ask the seller for the information shown on the title (property number, volume number, page number, entry number) or for a copy of the property’s registration (certificado registral) showing the last three owners (los últimos tres asientos) and the absence of liens.
C. Next, have a lawyer review the documentation (escritura de propiedad, certificado registral, and libertad de gravamen) to verify that the property’s seller has clear title without liens or any other sticky problems that will come back to haunt you.
D. After you have verified the land has no liens, a notary canprepare a sales agreement.
E. After the transaction, you or your attorney may then register the property in the Registro Público de la Propiedad Inmueble. To be considered the legal owner of the property, you should possess the property title properly annotated by the register. |
