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Selling Property

Monday, 18 October 2010 12:07 Nicaragua-Realty.com
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Every so often we need to sell the property we worked so diligently to acquire. Whatever the reason for making the decision to sell, it is important to follow a few simple rules in order to lessen the stress and maximize the profit.

  • Neat and clean sells! Every Realtor will tell you that cleaning up the property is one of the best investments you can make. Have the property looking clean and well maintained can increase the value in the buyers eye. If you own raw land, have someone cut the weeds, high grass and underbrush. Buyers like to see what they are buying and an overgrown property will turn buyers away quickly.
  • If you own a Home, give it a good cleaning and keep it clean and dust free until the home sells. When we live in a home for some time, we often get so used to our surroundings, we don't notice anything above eye level. Let me assure you, buyers do look up!. They see the dust on the ceiling fan, the cobwebs in the corners and the dirty windows just below the ceiling. They will also notice the dead insects that have collected in the light fixtures.

After you find a buyer, be sure to use a reputable lawyer to draw up a Buy - Sell Agreement. Don't be surprised if the buyer does not want to part with any earnest money until he or his attorney have had a close look at the title documents. You lawyer should include a reasonable time frame to allow for that. After that time, you should receive the deposit money from the buyer.

Make sure your Listing Agent makes sure your paperwork is complete, up to date and in order.

You will need the following documents in order to complete the sale:

  1. Your property title documents. If you have them in a safe location somewhere outside of Nicaragua, get them to Nicaragua for the closing.
  2. Make sure  you have a Historia Registral that includes the transfer of the property to you. If you don't have a Historia Registral, you'll need to get one. (You can read about the purpose of this document here.)
  3. Make sure to have the plot plan for the property.
  4. You need to have your Municipal taxes paid in full. Go to the Municipal Offices and ask for a Solvencia Municipal. Only do this after you sign a Buy - Sell Agreement. The Solvencia has a 30 day shelf life.   Think of this as a Tax paid statement.
  5. You will also have to get a Cetrificado de Libertad De Gravamen. This is basically a Lien Free Certificate for your property. Again = 30 day shelf life.
  6. One of the requirements to sell property often is the Letter of No Objection from the Nicaraguan Government. You can read about it here and determine if your property needs that document in order to be sold.
  7. You are responsible to pay the sales taxes on the property. this amounts to 2% of the declared value.
  8. When receiving payment for the property, it is best to arrange in advance the system of payment. Cash is often the preferred method of payment.

It is important that you have an experienced qualified agent looking after your interest. While the agent may be able to provide a buyer, he may know little about the closing process. Therefore it is often advisable to engage am experienced Sellers Representative to protect your interest.

Feel free to contact us if you have questions regarding the selling process of property in Nicaragua.

Please contact us if you wish to use this article on your website.
© 2010 Nicaragua-Realty.com
Last Updated on Friday, 22 October 2010 09:25
 

Owning Property in Nicaragua

Sunday, 17 October 2010 21:10 Nicaragua-Realty.com
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Property ownership in Nicaragua coincides with certain responsibilities. Your property in paradise will need to be maintained and your fiscal obligations will need to be looked after.

Taxes:

  1. Property taxes are lower in Nicaragua than most other countries.
  2. Taxes must be paid annually. Property taxes should be paid at the beginning of each calendar year. The Nicaraguan property tax system allows you to pay the taxes in two installments. 50% prior to the end of March and 50% prior to end of August.
  3. If the entire taxes due are paid prior to the end of March, you may ask for a 10% tax discount.
  4. Should you fail to pay your taxes on time, expect a very heavy fine. You may pay several times the amount of the taxes due. The reason for this is: You are paying a penalty on the penalty that is unpaid.
  5. Most absentee property owners have someone look after the tax payment on their behalf. Please contact us if you require this service. In most cases, the 10% discount will pay for the service.

Property Maintenance:

  1. If you own any property other than a house, you will likely need to have the vegetation cut twice per year. Remember this are the tropics and especially during the rainy season grass and weeds grow at an incredible rate.
  2. If you purchased a home, you will likely have to employ a caretaker.

Please let us know if you have specific questions or require property management services.

Please contact us if you wish to use this article on your website.
© 2010 Nicaragua-Realty.com
Last Updated on Thursday, 21 October 2010 20:29
 

Purchasing Property

Sunday, 17 October 2010 20:07 Nicaragua-Realty.com
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Once you decide on the property you wish to purchase the real work begins:

  1. Select and hire a Buyers Agent. Agree on a fee. The Buyers Agent will be guiding you during the buying and closing process.

    2.  

  2. Select a lawyer. The Buyers Agent. will be able to recommend someone reliable and competent. Listen to the Agent, in Nicaragua many lawyers have their license but few know the law and what is required to ensure your protection.

    3.  

  3. Meet with the seller. The Buyers Agent will be able to translate the negotiations and advise you about potential pitfalls.

    4.  

  4. Agree upon a price for the property. Do NOT give the seller any money at this point.

    5.  

  5. Your lawyer will do a complete check on the property title, of the tax paid status and the lien free status of the property at this time.

    6.  

  6. The lawyer will draw up a Buy - Sell Agreement. This will be signed by both, Buyer and Seller. This agreement should include all property details and specifics about the sale. It should also include any penalties in case either party reneges on the agreement

    7.  

  7. Both parties will sign the document in presence of the lawyer. The document signed is called a Testimony. Think of it as a sort of log where all of the lawyers legal actions are recorded. Theses Testimonies are eventually turned over to the Supreme Court for inspection.

    8.  

  8. The content of the Testimony is then transcribed into a Escritura. This Escritura will be a notarized transcription of the Testimony but only contains the lawyers signature.

    9.  

  9. Traditionally the deposit payment is paid in cash and is handed over after the signing of the Testimony. Your Buyers Agent will advise you during that process. You may want a receipt but normally the Buy - Sell contract is sufficient proof of the payment.

    10.  

  10. If the time span between signing the Buy - Sell agreement exceeds more than a few days, it is recommended to register the Buy - Sell agreement.

    11.  

  11. Just prior to the closing, the lawyer will again check for any newly placed liens against the property, and then draw up the title transfer document. The procedure is similar to the that of the Buy - Sell agreement. You and the seller will sign the Testimony only.

    12.  

  12. After the signatures have been affixed to the Testimony, the seller receives the balance of the funds minus the amount due in capital gains taxes and land sales taxes. We like to withhold these and pay them directly, thus avoiding non payment and subsequent problems. Your Buyers Agent should be able to advise you.

Please contact us if you have questions regarding purchasing property in Nicaragua or if you need more information regarding Buyers Agents services.

Please contact us if you wish to use this article on your website.
© 2010 Nicaragua-Realty.com
Last Updated on Thursday, 21 October 2010 20:10
 

Searching for Property

Sunday, 17 October 2010 19:55 Nicaragua-Realty.com
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Paradise Nicaragua?

For some it certainly is exactly that. A paradise and the land of Milk and Honey. But let’s be realistic, Nicaragua isn’t for everyone and like we are all told so many times: “Nothing in life is free!”

In order to make Nicaragua work for you, you’ll have to do your part. You will have to do your research and be patient. There are some steps that will virtually guarantee success and the omission of these steps will almost ensure failure.

Before you even inquire about that plane ticket to Managua, you should ask yourself a few important questions:

A.)

1. How much time will I spend in Nicaragua each year?
2. Will I be happy living away from my family, children or grand children?
3. How will I support myself?
4. Will I be able to adapt the the cultural and language differences?

If you have honestly answered the questions in Section A.) and still are determined to investigate further, you are ready for the next set of questions.

B.)

1. Do I need a social support system or will I be happy to live amongst Nicaraguans without daily interaction with people of my own cultural background? (The answer to that will pretty well determine in which area of the country you will be living.)
2. Do I wish to live in a large North American / European standard home, or will I be happy with a simple home without many of the luxuries I take now for granted?
3. How large a piece of land do I need and why?
4. Do I wish to have a nice view of the Ocean?
5. Do I need a Beachfront home?
6. Do I wish to purchase a property I can develop and generate income?

C.)

1. How much money am I willing to top dedicate to the move?
2. Will I have some funds in reserve in case of emergencies?

If after answering the entire series of questions honestly, and you are still anxious to explore Nicaragua in greater detail, by all means, go ahead and book that ticket. Get your Passport updated and get ready for what could be a life changing experience.

Remember, when starting the actual search be careful whom you are dealing with. Just about anyone in Nicaragua will try to sell you property, regardless of them owning it or not. Most Nicaraguans you will meet have no knowledge of property laws, documentation requirements or the purchase process.

Here is a list of "Don't do it if you want to keep your money" rules:

  1. Don't deal with "Bar stool Realtor's ". These are people that hang out at bars frequented by tourist. They will approach you and offer you the "Incredible Deal". They rarely operate legally, rarely have an office, rarely pay any taxes and rarely even spoke with the owner of the property prior to meeting you, the prospective client. They have no idea about what constitutes a legal property but they almost always have a "trustworthy attorney" as a friend that will close on the property for a very low fee.
  2. Don't feel obligated to deal with only one Realtor. You are here to find the property right for you. Remember, this is business!
  3. Have your Buyers Agent visit the property with you and have him / her check the documents. If the agent has doubts have your attorney check the documents.
  4. NEVER give a deposit to anyone unless a Promise to buy and sell has been signed by both parties and the document has been notarized.
  5. If you have doubts about the solidity of the transaction, walk away and look for another property.

    6.  

    Feel free to contact us with your questions.

Please contact us if you wish to use this article on your website.
© 2010 Nicaragua-Realty.com
Last Updated on Thursday, 21 October 2010 19:43
 



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