| International real estate investors in search of the | | | | agrarian reform titles or supplemental court ordered |
| next big thing need to look towards Nicaragua. But | | | | titles should probably be avoided. Once the buyer has |
| how good a place is it to buy property what are the | | | | found a property, then the buyer or agent |
| facts for the forign buyer. I explore this regions | | | | negotiates with the seller. After a price is determined, |
| benefits as a place to buy overseas property. | | | | the buyer places a non-refundable deposit on the |
| International real estate investors in search of the | | | | property from 5-15% of the selling price. The buyer's |
| next big thing need to look towards Nicaragua. Its | | | | lawyer will then check the title and it is a good idea |
| western coast is on the edge of a property boom | | | | to have a property inspection and survey done as |
| and the region dubbed as the safest place in South | | | | well. The lawyer will request a Free of Lien document |
| America is ripe for investors. | | | | from the Public Registry Office, which will show any |
| A little known fact is that Nicaragua has one of the | | | | impediment to sale as well as the name of the real |
| strongest economies in Central America and has | | | | owner. |
| made significant progress away from the turbulent | | | | If the lawyer verifies the property title, then you can |
| 1980s. There are virtually no barriers to foreign | | | | proceed to closing on the property. A new title, or |
| ownership of property and there are many great | | | | Escritura, will be drawn up with the owner as the |
| deals to be had. Having said that, a buyer should | | | | new title holder. The seller signs the deed and the |
| proceed with caution because practices are still | | | | final payment is made, often in cash. After this, the |
| underdeveloped. | | | | buyer's lawyer will register the property in the new |
| A buyer may use an agent, who can help negotiate | | | | owner's name. Upon registering the property there is |
| the price and will have a better understanding of the | | | | a .5% registration fee and 4% transfer tax due. |
| area. Agents fees are negotiable, but typically range | | | | Once the property is registered then the new owner |
| from 5-10% of the selling price and are usually paid | | | | is the official title holder. |
| by the buyer. Also, a local lawyer is a necessity when | | | | Foreign investment Law 344 assures that foreign and |
| researching the title. | | | | domestic investment receives the same treatment. |
| Property prices are increasing international real estate | | | | The law eliminates restrictions on the way in which |
| investors have seen returns upwards of 60% on | | | | foreign capital can enter the country and recognizes |
| purchases in key 'hotspots' since 2000. Property | | | | the investor's right to own property and establish |
| prices have been rising by an average of 20% per | | | | business enterprises as they wish. 100% foreign |
| year for the past four years and developments are | | | | ownership is allowed - there is no requirement to |
| springing up along the Pacific coast, in historical | | | | have a local partner. |
| Granada and the Great Lakes. | | | | The mix of healthy economy, low house prices and a |
| Most properties in Nicaragua have reasonably clear | | | | government bending over backwards to help you |
| titles, but there are some that should be avoided. | | | | invest makes the region a very good place for |
| Properties that were confiscated in the 1980s do not | | | | overseas buyers. |
| always have a clear title, and those that have | | | | |