“BUYING” a PROPERTY in Nicaragua?

Strongly suggested “TIPS” to buying property in Nicaragua,
and achieving a successful Title/Deed transfer of ownership, to “YOU” the buyer!
Buying a home, condo, a lot, a piece of land, a hotel, B&B, hostal, a business?
Please Read-On!

1. One of the most important facets of the real estate buying process is selecting an
experienced and trustworthy attorney, to handle your due diligence search,
to receive current up to date documents, create, translate, and arrange to write up the
deposit-offer to buy agreement, and the offer to purchase contract and final closing agreement.
If you are new to Nicaragua, or don’t have a reputable attorney… no worries!
Take your time making your selection, speak to local ex-pats that have had experience dealing with
the attorneys here in San Juan del Sur…and don’t be afraid to ask the attorney for references!
There are quite a few good law firms and attorneys in Nicaragua, particularly SJdS.
2. Select an experienced real estate broker/agent, that has thorough knowledge of the real estate market
in Nicaragua, and pertinent real estate laws and procedures, you can be thoroughly protected and secure!
Selling+Buying real estate in Central America, particularly Nicaragua, can be a very complicated,
grueling, disappointing and a time consuming process, so you’ll want a dependable broker/agent
to handle the tasks at hand, in an efficient and timely manner.
A good real estate broker will offer a solid “one-on-one” dedicated consultation, and will be understanding
of your expectations, desires, and sensitive to your personal living needs and requirements!
Our real estate firm: San Juan del Sur LifeStyle, S.A. and myself…*Paul Berman, real estate broker+owner,
pride ourselves on being efficient, thorough, responsive, and professional, during the buying process!
Always ask for references, and verifiable “real client” testimony, from past clients!
Strong communication is essential between broker+client/buyer, and much appreciated by both parties…
If a broker doesn’t answer your phone calls, email messages, etc. having concerns+questions about the property,
or can’t see you for an appointment, or have a simple conversation…then find another realtor!
Find a real estate broker/agent that you are comfortable with, that treats you like a friend, offering ongoing
help and assistance, letting you know the “do’s+dont’s ” of places to go…and not to go!
Information is KING, best to have an “angel-guide” on your side, letting you know the
good, the bad, and the ugly…of your new home-town!
EXAMPLE: best+worst prices, services, safety+security of the following…
doctors+lawyers, bars+restaurants, tour guides, taxi drivers/shuttle-services,
fishing charters, travel/excursions, hotel accommodations, places to shop, and of course…
places, neighborhoods, and people to avoid and stay away from.
Our objective is to work closely with the buyer’s and seller’s attorney’s, to assure satisfaction,
in the handling of legal matters and receiving documents that are authentic, true, and binding!
NEXT…
OK, you’ve found a home or property that you love, and are considering making an offer to buy!
As your real estate representative, my clients deserve to know everything about that property that
you are ready to make an offer on!
Being the biggest investment an average person makes in their lifetime, I suggest the following;
Rule #1. Do not give any money “up-front” to anybody, no real estate agent, no seller…
The only up-front money you should consider, after selecting your property, is to pay an attorney,
to perform “due-diligence” on the property you’re considering to buy.
I call this insurance, so you may have all the vital information needed, to make a successful intelligent
business decision to buy or not to buy, the property you’ve selected.
Many properties will have most of their documents in order, some just needing updating…
But, at least you’ll have a good idea of the property+status, so you may determine to proceed, or not.
A thorough diligence property search can cost between $100 to $300, and this step can save you
a lot of grief, disappointment, time and lots of money… making this money well spent, and a wise
business decision, which could save you the 10% deposit, which could be anywhere from
$1,000 to $100,000+ +, depending on the agreed upon sale price of the property.
NOTE: the attorney’s due diligence search should include the following;
A. a copy of the title and the rightful ownership deed, known as the “Escritura”
B. a certificate stating that your property is free of any tax-liens, penalties/ fees, and is current.
(this is known as the “Solvencia Municipal”
C. a certificate stating that the property you wish to purchase is “Free+Clear” of any/all liens,
mortgages, lawsuits, encumbrances, past-due H.O.A. fees, water, electric, cable TV, or internet/WiFi services/fees,
or any claims against the property.
(this is known as the Libertad de Gravaman certificate).
D. a physical “Plot Map” of the legal boundaries of your property,
this is called the “Plano” which is on file at the “Catastro”office, where all property plano’s are registered,
and on file.
NOTE: you’ll want a current and up to date plano, created by a certified surveyor, to compare the new plano,
with the one that’s on file at the Catastro office, just to be sure you’re not being swindled, or misled.
E. a copy of the registration of the property, which can be found at the office of the registration of public property,
known as the “Registro Publico de Propiedades”.
F. a copy of a certified property search of the history of the land, and previous ownership, which should be
dating back 30 to 50 years…this is imperative, and strongly suggested!
G. a copy of the annual tax statement stating that the property is paid to date!
(this office is known as “Impuestos de Bienes y Inmuebles)
H. a copy of the latest/newest “assessed value” of the property, and a guaranteed price of the
new “Transfer of Tax” fee that the new buyer will be paying!
NOTE: just recently the transfer of tax fees have been increased dramatically, please…
make your attorney aware of this, and ask him/her to provide you with a bonifide new transfer of tax fee, in writing!
NOTE: Annual Taxes should be 1% of the newly assessed value of the property…
and…you can receive a 10% discount on your annual tax rate, if paid before March of the new year.
Please note, there are still many more things to consider, before making the decision to purchase property
in Nicaragua, we’ve just outlined some of the more important issues and concerns for you to be aware of.
As your appointed real estate buyer’s representative, these and more, are most important to the buyer,
and this is our template we’ve created to assure the buyer of a smooth, hassle-free, and successful transfer of title!
If you’d like for me or my firm to represent you, in your search and purchase of a property, all I ask is this…
to sign an agreement insuring our company, San Juan del Sur LifeStyle, S.A. will be commissioned to receive
our agreed upon commission at closing, of any property presented to the buyer by our company.
This commission agreement is only valid on properties that were shown to our client’s, by myself or one of our agents,
any properties located by other agents or brokers, and sold, will make this agreement null and void, and therefore…
no commission will have to be paid to our company, San Juan del Sur LifeStyle, S.A.
NOTE: we are more than happy to show all properties listed with all real estate firms, that may be for sale, whereas…
if we show that property to our buyer-client, we will be deserving of splitting the commission 50% – 50%,
and awarded 50% of the total commission paid out to participating agents/brokers .

Additional Attorney’s fees… these can add up, please read on!
1. a copy of the attorney’s list of fees and what you get in return, that’s included in their basic price!
2. a list of services and prices for each, which are not included in the normal fee.
Example:
a. “translation of documents fee” by a certified translator which is mandatory as per the Nicaraguan government,
which can cost $75 to a few hundred dollars, depending on the length of the contract, and complexity.
b. Escrow account and money/bank-wire fees, which are generally .05% of the sale price, plus 15% tax.
c. Wire-transfer fees, which can be up to $100+ sometimes, depending on the bank, and amount being transferred.
d. Starting a new corporation, as to greatly reduce your personal and private business liability.
Strongly Recommended! New corporations vary in prices from firm to firm, you get what you pay for.
Note: After 14 years of doing business in Central America, I’ve concluded that setting up a new corporation
can be costly! The price will vary from firm to firm, depending on their status, amount of time taken, complexity,
thoroughness, and ability to expedite documents, signatures, registrations, transactions, etc.
e. Foreigners applying for residency (cedula) in Nicaragua…
For myself, having submitted my application for residency to the Nicaraguan Immigration, and
being approved the very first time, I say this… it can be a grueling disappointing, inconvenient,
time-consuming and complicated and tricky process, having documents apostilled or “stamped”
by corresponding country’s “department of state”…
It does get tricky… be warned, you must arrange for time-sensitive documents to be aligned with other
time-sensitive documents/authentications, before they expire! Be careful, an expired document can result
in an interruption, making you start the whole process over again, from the beginning!
Example: your birth certificate must have your government’s “stamp of authenticity” which is called
an “Apostille” and expires within 90 days of issuance.
SO I say… contract a qualified residency attorney, to guide you through the time-frames, etc.
Common documents required for Nicaraguan “residency” (cedula) include;
1. Passport, with more than 6 months validity, prior to expiration, and
you must have at least 3 blank pages available for future travel/stamps!
2. a health certificate approved by a certified Nicaraguan doctor, no more than 90 days old.
3. an International “Interpol Criminal Background Report” no more than 60 days old!
Person applying for residency must appear at Interpol in Managua, in person to apply for a report.
Note: I’ve heard of Interpol’s background check to be accepted upwards of 90 days,
better to be safe than sorry!
4. If applying for residency as a “pensionado” (pensioner) in Nicaragua, you’ll need your government to stamp
your annual social security or income statement, then translated to Spanish by a certified translator/notario,
then submit that to the Nicaraguan government for official stamp and acceptance.
Above must be completed, prior to submitting your residency application to immigration.
5. If applying for residency as an Inversionista (Investor) you’ll need the same documents mentioned
in the above #’s 1-4 plus…you will be required to provide documentation or evidence that you are
making an investment of a minimum of $33,000 USd into the country of Nicaragua, whether it be buying land,
a home or a business.
MY ADVICE: definitely incorporate your new investment into your new corporation, to eliminate or
reduce and soften any liability.
* Ask about the #306 tax incentive law, requirements, and compliance, as there are many incentives to investors!
Note: All documents must be either translated to Spanish, applied for, ordered+received,
and submitted before expiration dates!
Contact me for further assistance, property buyer’s representation and/or consultation.

Respectfully,

*Paul Berman, broker
San Juan del Sur LifeStyle, S.A.
(a Nicaraguan corporation)
Website: SanJuanDelSurRealEstate.com
Email: PaulBerman1@yahoo.com
Tele# is 1-954-637-9744
thank you!