The Steps to Buying Property in Nicaragua

Buying property in Nicaragua does not have to be difficult, stressful or risky. Just like everywhere else, Nicaragua has it own system in place for buying and selling property. It is important to work with someone that fully understands that system and has experience in the field. There are a number of simple rules that will insure the safe and simple completion of your purchase.

Rule Number One: Always have a property checked out by a trusted lawyer before signing a promise of sale and handing over a deposit.

Rule Number Two: Be prepared to walk away from a purchase when it becomes apparent that you will not be able to obtain Title Insurance. Do not become so attached to a piece of property that you throw all logic out the window.

The Seven Steps:

1. Be prepared to walk away
2. Find a proper Lawyer that you understand
3. Use an Escrow Account
4. Obtain the Escritura (Deed) and Plano (Property Map)
5. Obtain the Historia Registral (Property History), Solvencia Municipal (Property taxes paid), Libertad de Gravamen (Property Liens)
6. Have a topographer check the property boundaries
7. Obtain Title Insurance

The correct process:

After the property is checked out by your lawyer, the promise to sell is signed and a deposit is handed over. This promise of sale is written to protect the buyer in the case that title Insurance is not possible. Title Insurance is then applied for and when the policy is approved the remaining balance is paid at the same time that the title is signed over to the buyer. This keeps the Buyer in control of the entire process. A trusted agent with Poder (Power of Attorney) may be used to sign in your absence.