1. Can foreigners own property?
In Nicaragua, foreigners have the same property rights as nationals, with the exception of not being able to own property within 5-kilometers of the country’s northern and southern borders.
2. Can I buy a property with my IRA, company or Trust?
Any legal entity can be used to buy real estate in Nicaragua. These entities, if foreign, must grant documents of existence in the country of origin, plus a Power of Attorney to represent it in the purchase of real estate.
3. Do I need to personally attend the Transfer of property meeting?
Yes, the Civil Law system requires that the acquirer has to sign accepting the transfer of the domain in favor of the buyer, therefore a Special Power of Attorney must be granted if the buyer will not be in the country on the closing day.
4. How long does the registration process for the purchase of a property take?
This depends a lot on the province in which the property is acquired, but normally it lasts between two and six months from the date of signature of the deed of sale.
5. How many people can I include as owners in the new title?
All the people you want, whether they are natural or legal. If there are more than two, it must be established whether they acquire the title in equal proportions or in different proportions.
6. Is there escrow service in Nicaragua?
Yes, there are several escrow services in Nicaragua. These services and costs vary according to the need for custody of funds. Our firm recommends the use of this service for the security of the parties to a contract.
7. What should I do before buying the property?
The most important thing is to hire a competent and experienced attorney to do a Title Due Diligence for the land you want to acquire and make sure that there are no problems with the title, that the property is unencumbered, that you do not owe Real Estate Taxes, that has legal access, among others. In the case of properties that have structures, it is important to do an inspection on the condition of the structure to ensure that it is safe.
8. Can I acquire title insurance in Nicaragua?
Title insurance is not available in Latin America with the exception of Mexico. However, our firm does the same job companies that offer title guarantee services do in terms of the research that is done prior to the purchase of a property.
9. What is the approximate closing cost when buying a property?
Closing costs are highly dependent on the price of each property. We can say that they are in a range of between 4 and 9% of the cost of the property.