Nicaragua-Realty.com

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

 

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

 

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. 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. 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. 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. 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. 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. 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. 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.