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Nicaragua Real Estatehat are the steps to property purchase in Nicaragua?

In order to complete your real estate purchase in Nicaragua it is first necessary to choose an attorney.

Step One: Contract

Agree on a price and the terms of the sale and sign a contract.

Step Two: Due Diligence

It is now time for your attorney to do the proper legal due diligence. The attorney must check the current escritura (Deed). The deed should be in the name of the person you are purchasing from and be properly registered. A lawyer will then research the title chain of the property. This will uncover any irregularities in the title history and ensure the validity of the current escritura. The lawyer will also get a libertad de gravamen (free of liens). This document is only valid for 30 days and guarantees that there are no liens against the property. It is also necessary to have a solvencia municipal (municipal solvency) dated within 30 days of closing. This ensures that the current seller is up to date with his tax payments.

Step Three: Closing

A new escritura will be prepared by your lawyer. This will show the transfer of the property from the old owner to the buyer. This is typically prepared in advance so that both the buyer and the seller are able to review the document and there are no surprises at the closing table.

The escritura is signed by the seller (or their representative) and the buyer (or their representative). It is necessary to bring the original power of attorney to the closing. The funds are simultaneously given to the seller in the form of a check with a signed receipt.

Step Four: Registering the property in the new owner’s name

The registration process in Nicaragua takes time and patience. It takes between 6 and 12 months to register a property in the new owners name. However, the property is ownership is transferred at closing and the legal testimony from the closing is 100% valid proof of ownership. All the necessary taxes must be paid on the property in order for it to be registered. The taxes on real estate in Nicaragua include:

* 1% of the assessed value to the DGI
* .5% of the assessed value to the Registry
* 1% municipal tax

steps to buy property in Nicaragua  

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