Buying property in Nicaragua

Buying property in Nicaragua is a memorable experience 
that can often drive you crazy, or even insane. 
    
Being well prepared, having people around 
that you trust and being patient are 
the most important things to remember. 

Be well prepared and informed. 
Research, research, rersearch.
Find People that you trust.
Be patient.

Below you will find a few notes about what papers you need 
when buying property in Nicaragua. This information is 
subject to change and no more than a rough guide to get 
you started. Buying property in Nicaragua can be 
frustrating and time consuming.   Best of Luck. 

-  Registered Title of the Property

(Escritura de La Propriedad ) in the department it exists, Nicaragua

Including copies of all receipts and transactions, including the following.

•  Certifcado Catastral

•  Formatos Retencion

•  Const. Avaluo Catastral

•  Retencion I.R. Acto Ocasional

•  Constancia de Avaluo Catastral (Bienes Inmuebles)

•  IBI/ Solvencia de Alcadia Municipal

•  Retencion en La Fuente (IR)

•  Mapa topografo de tereno. Afirmado.

This all must be registered in the public registry (Registro Publico de la Propiedad Inmueble).  

-  Certificate of Evidence that the property is free of liens.  

(Certificado de Libertad de Gravamen)

This just makes sure that the property has a clear title and free of liens.

- History of the property registration

(property number, volume number, page number, entry number) showing the last three owners and absence of liens. Signer by the seller. Basically this just shows that the property has a clear title and history to it.

(Certifcado registral: antecedentes y historia registral y libertad de gravamen. Firma de vededor.

Corte Suprema de Justicia, Orden de pago,. Certificado Relacionada de la propriedad.

-  Signed declaration of Authentic Title of the property.

Escritura matris propriedad de vendedor testimonio contenido escritura autenticada.

•  First America Title Insurance Co Requirements

These requirements could change at any moment.

Please contact First American for specific info. Although title insurance is not required to buy property within Nicaragua, it would be a good idea get it done just to verify your purchase.

•  Signed Declaration of Accuracy from the Topographer (Firma y declaracion del agrimensor)

•  Signed declaration of possession from Seller/Owner. (Firma y declaracion del vededor/ propietario)

•  Signed

•  Final Legal opinion of the Property Title for Nicaragua. (Opinion legal y final del titulo de propiedad para Nicaragua

•  Registered Title of the Property (Escritura de La Propriedad ) in the department it exists, Nicaragua

(Including copies of all receipts and transactions)

This to be registered in the public registry (Registro Publico de la Propiedad Inmueble).  

Notes:

In Nicaragua full legal title to a piece property is observed only when you hold both Dominion and Pocession.   Legally both can be sold separately. So make sure that in the Escritura it is clearly stated that both Dominio and Posesion are transferred to your full name from the seller.

Property in Nicaragua usually takes at least 6 weeks to purchase. The time can be reduced with the proper representatives.

Make sure you have copies of everything and that you are in possession of the original paperwork and make sure everything is notarized by a registered notary.

Property is usually devalued in the Escritura. Meaning that if you bought a Manzana (1.68 acres) for $50,000, chances are that in your escritura the land will be valued at, lets say $3,000. The reason this is done is to reduce your property taxes and the sellers taxes.

The transfer of the money is usually done in a lawyer's office.   Many Nicaraguans do not have bank accounts so they want their money in cash.   If you do not have a bank account, you can usually transfer the money into your lawyers account.

And of coarse, a good lawyer is strongly recommended.