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