What do I need to know when buying a house or other real estate in Nicaragua?
Paul Tiffer - TIFFER & ASOCIATES
In my opinion the first information anybody must know when buying a house or other real estate in Nicaragua is if the property is in order, from a legal perspective.
This question has a similar reply as another in this section which asked if someone buying a house in Nicaragua needed a lawyer. Therefore that will be the first answer for this question. To buy a house in Nicaragua it is imperative to hire a lawyer so as to be assisted by a professional.
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In my opinion the first information anybody must know when buying a house or other real estate in Nicaragua is if the property is in order, from a legal perspective.
This question has a similar reply as another in this section which asked if someone buying a house in Nicaragua needed a lawyer. Therefore that will be the first answer for this question. To buy a house in Nicaragua it is imperative to hire a lawyer so as to be assisted by a professional.
It is important to know that the legal system in Nicaragua is different than in the USA or Canada.
We lawyers in Nicaragua are at the same time Public Notaries with the ability to prepare the Writ in order to transfer the title at the closing.
Nicaraguan law only accepts contracts written in Spanish and with the formalities the law states and prepared by a Public Notary in an special paper called: legal paper. Any agreement in English or any other language in not legal in Nicaragua.
The buyer has the right to hire his own legal advisor / lawyer who must protect the interests of his client.
It is not mandatory to be resident to buy a Real Estate property in Nicaragua.
It is imperative to know that the transfer tax must be paid buy the seller. The transfer tax has different brackets depending the price of the property: to $ 50,000 the tax will be the 1%; from $50,001 to $100,000, the tax is 2%; if the price of the property is from $100,001 to $200,000 the tax is 3%; and if the property is from $200,001 or greater the tax is 4% of the property. The registration cost must be paid for the buyer and is incremented as well with a ceiling of $1,500.
Finally, just in San Juan del Sur and Tola Municipally there is an extraordinary and additional Municipal tax of 1% for the transaction that must be paid by the seller as well.
Best Regards
Posted March 1, 2014
David Smith - Farmland Assets
Regarding the purchase of real estate and fees paid by the seller & buyer, it is important to note that a separate contract is permitted and negotiable regarding payment of these fees. Many buyers and sellers prefer to negotiate a net price to the seller with the buyer paying all required fees.
This arrangement is sometimes preferred due to the fact that some sellers are very slow to pay the transfer taxes and this can delay the title transfer...
Regarding the purchase of real estate and fees paid by the seller & buyer, it is important to note that a separate contract is permitted and negotiable regarding payment of these fees. Many buyers and sellers prefer to negotiate a net price to the seller with the buyer paying all required fees.
This arrangement is sometimes preferred due to the fact that some sellers are very slow to pay the transfer taxes and this can delay the title transfer process.
Posted March 19, 2014
Carlos Roman Gutierrez Solis - Casa Granada Properties
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When I work with someone who is considering buying a home in Nicaragua, I am not in a hurry because I understand it is an entire process. It can take a year before someone says “OK, I’m ready; I’ll buy it.” Before making any decision, I advise my clients to stay a couple of months, explore, check things out, talk with everybody, etc. You have to be convinced that you want to buy in Nicaragua. We have different...
When I work with someone who is considering buying a home in Nicaragua, I am not in a hurry because I understand it is an entire process. It can take a year before someone says “OK, I’m ready; I’ll buy it.” Before making any decision, I advise my clients to stay a couple of months, explore, check things out, talk with everybody, etc. You have to be convinced that you want to buy in Nicaragua. We have different rules and our society has a different way of doing things. My recommendations for anyone who has never been in Nicaragua is first to come as a tourist, then talk with locals and expats who can explain how things work. Obviously, you’re going to hear good and bad comments about people’s experiences. I would rather say to try it first as a tourist and then see if Nicaragua is your place.
Be patient. The first thing you need to do is to know that, compared with many other places, in Nicaragua things don’t happen fast. We have ways of doing things that we follow. Nicaragua is still a country whose people are learning how to do many things, for example, to provide better customer service. By North American standards, some people are lazy.
Know as many people as you can, and you need to be cautious. Don’t just jump at the first thing that’s presented to you.
I recommend highly that you find a local hotel with a good reputation that can tell you easily who to talk to, because they are used to recommending people. I would definitely not work with someone just from the street. You have to be very careful not to deal with those “runners”, which is our name for less than qualified people who show you properties or lawyers who offer that everything can be done without full disclosure.
Posted August 15, 2014