After a real estate tour of Nicaragua or viewing properties shown to you by a real estate agent and you’ve made a decision to buy property in Nicaragua, you may be wondering, just how difficult is it to buy property in Nicaragua? It’s really not that difficult if you have an attorney who is bilingual and represents only your interests. This article comes from International Living and sums it up perfectly if you want to know exactly how easy it is to buy property in Nicaragua.
Step 1: Check the Title
Before you pay a deposit, have an attorney check the title of the property. Title registers are maintained locally, so a local attorney should know of any properties in the area with title issues. (Sometimes it is a good idea to have a couple of attorneys check the title: a local attorney and a firm in Managua.)
Step 2: Sign the Promise to Sell
Real estate transactions are usually overseen by a notary. (The position of notary is the highest level of attorney qualification in Nicaragua, and is awarded by the state.) In Nicaragua, rules regarding “conflict of interest” are non-existent, thus your attorney might be working for both you and the seller. Sometimes an attorney may not disclose this information, even if asked.
Once you have agreed a purchase price with the seller, the notary will prepare a promesa de venta (promise to sell). This is a three-party agreement, signed by the buyer, seller, and notary. If the document is in Spanish, be sure to have it translated in full. Upon its execution, the notary will prepare a testimonio. This is an exact copy of the promesa and is placed in the public records to advise other prospective buyers that the property is under contract.
Step 3: Sign the Deed
Once all conditions of the promesa have been met, the notary will prepare an escritura (deed) to be executed by the buyer, seller, and notary. Once again a testimonio is prepared. This is taken to the property registry and an appraisal of the property is done. An appraisal certificate is issued and submitted to the IRS, along with the testimonio. Once the transfer taxes have been paid, the testimonio is recorded in the public registry office of the municipal government.