HOW TO ACQUIRE A PROPERTY IN NICARAGUA
Index
Investigate that the property is legally in order
The agrarian reform and urban reform laws that were implemented in the eighties gave rise to a rather disorderly traffic of property, without the existence of strong institutions in the Public Registries or in the Physical Cadastre, a large part of the national territory was not even registered
Additionally, there are property regimes of indigenous communities, as well as ejido properties, coastal law and border land law, which have their own regulations. For this reason, investors must be careful with the investigation of the legal status of the properties, to avoid being scammed or acquiring a conflict. With the appropriate advice, a legitimate and problem-free purchase is guaranteed.
A legal investigation or due diligence must be carried out on the legal status of the property, guaranteeing that everything is in order.
- Verifying that the seller's title is duly registered in the Public Registry of Real Property of the Department where the property is located.
- Verify your registration history and that the property is free of encumbrances.
- It must also be verified that the property plans are duly registered with the Physical Cadastre Directorate of the Nicaraguan Institute of Territorial Studies (Dirección de Catastro Físico del Instituto Nicaragüense de Estudios Territoriales INETER) and that the Cadastral Number, physical location and surface extension data that the seller is providing coincide with the official data registered in the Cadastre.
Formalize the Acquisition
The acquisition of a property by a national or foreign person must be formalized through a public deed prepared by a notary incorporated and authorized by the Supreme Court of Justice. Foreigners have no problem acquiring property, except for the limitations established by the land law in border areas.
- Once the public deed of sale is signed, the first stage of the registration and record process is before the Physical Cadastre Directorate. The property plans must be authorized and validated by this institution, which issues the Cadastral Data Certificate, an official document that validates that what is being legally purchased in the ownership title corresponds to the area and actual physical location of said property.
- Then, the next step is the Cadastral Appraisal, to determine the value of the taxes to be paid for the transmission, as Income Tax for Capital Gains. The payment of this tax corresponds to the seller.
- The tax is paid based on the appraisal, with the payment slip and the Municipal Solvency Certificate that verifies that the property does not owe taxes to the Mayor's Office, we finally proceed to present all the documentation before the Public Registry of Real Estate Property of the department that corresponds.
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