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Property scam warning

Saturday, 16 April 2011 10:11 administrator
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Property scam warning !

Problems with property title are not a new issue in Nicaragua. It is surprising however, how many potential buyers are still being approached with questionably titled properties.

One could understand this if the sellers were poorly educated Nicaraguan farmers who don’t know the latest laws or regulations. However, some of the persons offering property without solid title are “Reputable Realtors”. I can assure you, they are neither reputable nor are they Realtors.

Case in point:

Last week I received email from a member of the Nicaragua Living Blog Site inquiring about our Buyers Agent Services. During our preliminary correspondence it became clear that a person operating a real estate website had approached the potential buyer with an offer to sell property near the Poneloya's estuary.

From working in the area for years, we have a fair knowledge of the properties in that area and we know what is indigenous land and what has solid title.

I asked the potential buyer to contact the “agent” and find out if the titles are real or indigenous titles. Sure enough, the answer came back:

From: "sales@-deleted- realty.com" <sales@ -deleted- realty.com>
To: Deleted
Sent: Mon, April 11, 2011 7:34:34 PM
Subject: Re: PID: 58416264

Both are Indian Community Titles.  A lot of titles in the area are from them.    I own several properties and their titles are good. Taxes are a little higher (100USD/year) than simple fee title (60USD/year).
Another type of title in the area is concession title.  Their yearly fees are a little higher.
Mauricio.

 

Well I have news for Mauricio: The tiles are not “good” as he states and he does not “own” any land there unless he is a member of that indigenous community.

If he in fact holds title to any property on indigenous land, he holds title to nothing. He can never sell the property since he does not legally own it unless he is a member of that community. Even then selling any title outside of that community is against the law. He may enter into and agreement with the community to rent the land one year at the time but that is about it. If Mauricio is trying to sell land that belongs to an indigenous community he may well be guilty of land trafficking and subject to lengthy jail time.

It is important to understand that the Junta Directiva of indigenous communities change regularly. (Mostly annually). The new Junta has the right to change any and all agreements and it is not uncommon that non-indigenous “owners” of property within the boundaries of indigenous communities have to buy their right to use the property annually over and over again since they have no rights whatsoever to the property under the law.

It is sad that these scams are still happening and that so called “Realtors” are involved in this type of transactions. They are either plain criminals or too lazy or too dumb to educate themselves in the laws of the land.

For this particular potential buyer, contacting us to find out about Buyers Agent Service, saved him a lot of grief and money. Best of all, it did not cost him a penny.

Our advice:

  • Be careful
  • Educate yourself
  • Use a Buyers Agent for all purchases no matter how “good” the title may seem.

 

 

 

 

Last Updated on Saturday, 16 April 2011 10:27
 

Nicaragua Real Estate for Sale and Current News?

Wednesday, 27 October 2010 14:14 administrator
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We hope to make you a better informed buyer. We believe that by having a broader spectrum of information at your fingertips, you will fall in love with Nicaragua as we did. We hope you will make Nicaragua your home for investment, retirement or business.

We see a ever increasing variety of people visiting and staying on.  They make Nicaragua their home. Retirees, young couples with small children, surfers and backpackers, investors large and small, all are coming to Nicaragua at an increasing rate.

We hope you too will come and explore this piece of paradise. Come and meet the the local population. Explore and experience what our country has to offer.

Feel free to contact us and we'll do our best to provide the answers you require to make an informed decision.

Come to Nicaragua and experience the lifestyle, the splendid climate and the peace and tranquility no other country can match.

Welcome to Nicaragua! Welcome to our Home!

Last Updated on Monday, 20 December 2010 18:45
 

Property Tax Payment Service

Thursday, 21 October 2010 08:08 administrator
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Property taxes in Nicaragua are payable on an annual or six month basis.

  1. Municipal property taxes can be paid beginning January second of each calendar year.
  2. The payment period extends from January 2nd to March 31st of each year.
  3. If the property owner pays the taxes for the entire year during the first three month of the year, he/she may be entitled to a 10% reduction of the amount due.
  4. If the property owner chooses to pay the taxes in two installments, the first installment is due during the first the month of the calendar year. The second installment is due on July 1st of the same year. Under this payment option no discount is available.

Penalty for late payment:

If property taxes are not paid on time a penalty will be assessed. These penalties will increase rapidly and the amount of total taxes plus penalty can easily amount to double or three times of the amount of the original taxes. It is therefore important to ensure punctual payment of property taxes.

Nicaragua-Realty.com provides a property tax payment service:

  1. We visit the Alcadia (Municipal Offices) and obtain a Property Tax Invoice for the clients property.
  2. This Invoice clearly shows the taxes due and the discount we negotiate for the client.
  3. The Tax Due Invoice along with our invoice for the service is emailed to the property owner.
  4. The property owner sends the required funds to us. (Western Union)
  5. We then pay the taxes on behalf of the client and obtain a receipt for payment.
  6. This receipt is then scanned and emailed to the property owner.
  7. The original receipts remain in our offices for safekeeping until the property owner chooses to pick them up.

Cost of this service:

The cost varies depending on the location of the property and the location of the municipality. Generally speaking the 10% discount issued by the Alcadia will cover the cost of the service.

Please contact us early in order to be included in our list of clients using this service.

Please contact us if you wish to use this article on your website.
© 2010 Nicaragua-Realty.com

 

 

Last Updated on Thursday, 21 October 2010 08:41
 

Buyers Agent Services

Tuesday, 19 October 2010 18:42 Nicaragua-Realty.com
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This is a service many people in North America and especially in Europe are unfamiliar with. Here in Nicaragua, partially due to the language barrier and the rather unique legal process, this service is now widely used.

When we opened our company almost seven years ago, real estate offices were few and far between. Potential buyers of property had to run the gauntlet of "Bar-stool Realtors". They had to deal with local hustlers that would sell you any property regardless if they owned it or not. Peace Corps members that decided to sell real estate to support themselves for a year or so while spending most of their time surfing were common in the industry.

After a short time in the business, we quickly realized the need for someone who knows how the system works and what to watch out for on behalf of the client. We took the time to familiarize ourselves with Nicaraguan property law and the Nicaraguan legal system in general. We subscribed to the legal updates available to the legal community every time a law changes. And the laws are changing frequently. And thus the Buyers Agent Service came into existence.

What should you expect from a Buyers Agent?

  1. He should be intimately familiar with property law and the legal process of closing the sale and transferring the property title.
  2. He should be familiar with the various types of property title in use in Nicaragua.
  3. He should be familiar with Concession leases and be able to advise a client on the leasing process.
  4. He should be able to read and interpret a Historia Registral.
  5. He should be able to advise the buyer on other important issues, such as access rights, how to obtain electric services on a rural property, drilling a well and all the permits required along the way.
  6. He should be able to suggest reliable experienced legal counsel to handle the legal aspects of the sale.
  7. While the Attorney is responsible for the legal work, the buyers agent should work closely with the lawyer to ensure the process does not get stalled in some government office.
  8. You should expect for the Buyers Agent to manage the property purchase and title transfer process from beginning to end.
  9. You should expect him to keep you informed of any progress or lack thereof, as far as the registration of your property title is concerned.
  10. Most of all the Buyers Agent should be your "Guardian Angel" throughout the entire property purchase process. He should be experienced enough to tell you when something is seriously wrong with a property. If the Buyers Agent suggests you walk away from a property purchase, listen careful and be sure you understand why he makes that suggestion.

We have acted as Buyers Agents for many clients. Our experience has shown that often the better known real estate franchises are the ones that leave the buyer the most vulnerable. The buyer may assume that because of the familiar name on the door, the agent knows what he or she is doing. Often the opposite is true. A familiar name on the letterhead does not guarantee a safe transaction.

Feel free to contact us to find out more about this service and how you may benefit from it.

Please contact us if you wish to use this article on your website.
© 2010 Nicaragua-Realty.com
Last Updated on Tuesday, 19 October 2010 21:55
 



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