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Nicaragua Real Estate Investmen A Risk-Free Purchase
Dealing in International real estate becomes stressful only when you proceed without doing your homework. Every country has its own sets of real estate rules and regulations and an investor must abide by these rules. Here is a list of things you should consider while dealing in Nicaraguan real estate.
• First, hire a reputed lawyer to guide you through the deed-making process. It is worth the cost. Make sure your lawyer speaks fluent Spanish and English. You should be able to understand all the fine prints of your real estate deed, which are written in Spanish language. A language barrier is very risky, as it creates gap between the expectation and the reality.
• Second, do not get too carried away by just a look on the property and by the promises of the seller. Never hand over any money before you sign the property deed. Make sure to place the deposit money on an escrow account and not personally in the hands of the seller. Choose the escrow agent with caution. A third party escrow agent is the most prudent choice as these agencies ensure that terms of the deed are strictly followed before the money changes hands.
• Third, hire a professional reviewer to make sure that all the property documentations are in order. Before signing the contract, make sure all the necessary documents are in place and all the records are accurate. Check it yourself and never take it for granted.
The seller is expected to provide you with five essential documents which must be recent and not older than thirty days. 1. Escritura (Deed) 2. Plano (Property Map) 3. Copies of the Historia Registral (Property History obtained at the Registration office) 4. Solvencia Municipal (Property taxes paid obtained at the local municipality office) 5. Libertad de Gravamen (Property Liens obtained at the registration office).
• Acquiring Title Insurance is essential in Nicaragua. There are many renowned agencies such as Stewart Title or First America, who offer title insurance policies for the overseas real estate investors in Nicaragua. Obtaining Title Insurance from one of these agencies is a smart step for a risk free property purchase in Nicaragua.
• Last, but not the least, make sure you issue the check in the name of the seller only when he hands you over the deed. This gives you full control over the purchase process. You can give power of attorney to your trusted attorney for signing the deed on your behalf.
These are the basic guidelines to remember when you are buying real estate in Nicaragua. Following these guidelines will make your real estate investment in Nicaragua will be rewarding and risk-free.
