Real Estate Law

1. Conducting Due Diligence
Title Verification: The lawyer ensures the seller has legal ownership of the property and that the title is free from disputes or encumbrances. This includes checking the property registry (Certificado de Tradición y Libertad).
Outstanding Debts or Liens: They verify that the property has no unpaid debts, such as property taxes, utilities, or mortgages.
Zoning and Use Restrictions: The lawyer checks whether the property complies with local zoning regulations and if there are any restrictions on its use.
2. Reviewing Contracts
Promesa de Compraventa (Promise to Purchase Agreement): The lawyer reviews and negotiates the terms of this preliminary agreement to ensure they are fair and legally binding.
Public Deed (Escritura Pública): They prepare or review the final sales contract to ensure it accurately reflects the terms agreed upon.
3. Tax and Regulatory Compliance
The lawyer ensures the buyer complies with Colombian tax regulations, including obtaining a NIT (Taxpayer Identification Number) if needed.
They ensure the transaction adheres to foreign exchange regulations, especially when transferring funds from abroad.
4. Representation at the Notary Office
In Colombia, property transactions are finalized at a notary’s office, where both the buyer and seller sign the public deed. If you are unable to attend in person, the lawyer can represent you with a notarized power of attorney.
5. Registration of the Property
After signing the public deed, the lawyer ensures the property is registered in your name with the local property registry office. This step is crucial for establishing legal ownership.
6. Protecting the Buyer’s Interests
The lawyer ensures all conditions of the sale are met, such as verifying that the property is delivered in the agreed condition and resolving any disputes that may arise during the process.
7. Legal Advice
They provide guidance on Colombian property laws, taxes, and any special considerations for foreign buyers, such as investment visas tied to property purchases.
8. Handling Disputes
If there are legal disputes or unexpected issues during the transaction, the lawyer can mediate or represent you in legal proceedings.
Why a Lawyer is Essential
While not legally required to hire a lawyer when buying property in Colombia, having one is highly advisable. They provide an added layer of security, ensure compliance with Colombian laws, and reduce the risk of fraud or errors in the transaction. This is especially important if you are unfamiliar with Spanish or the local legal system.



Buying Properties in Colombia: A Guide for Foreigners
Colombia has become a popular destination for real estate investment due to its vibrant cities, stunning landscapes, and relatively affordable property prices. Whether you’re looking for a vacation home, an investment property, or a place to retire, Colombia offers diverse options to suit various preferences and budgets. However, understanding the process and legal requirements is essential to make a successful purchase.

The Buying Process in Colombia
Identify Your Budget and Location
Research is key to finding the right property. Popular locations include Bogotá, Medellín, Cartagena, and Cali, each offering a unique lifestyle. For beach lovers, Cartagena and Santa Marta are ideal, while Medellín is known for its temperate climate and modern infrastructure.

Engage a Real Estate Agent
Partnering with a licensed real estate agent who understands the local market is highly recommended. Agents can help you navigate properties, negotiate prices, and handle documentation.

Property Due Diligence
Before committing, conduct due diligence on the property. This involves verifying the property’s title and ensuring there are no outstanding debts or legal issues associated with it. This step is typically handled by a notary or a lawyer.

Sign a Promesa de Compraventa (Promise to Purchase Agreement)
Once you’ve decided on a property, you’ll sign a preliminary agreement with the seller. This document outlines the terms of the sale, including price, payment schedule, and any conditions. A deposit (often 10-20% of the price) is usually required at this stage.

Obtain a NIT (Taxpayer Identification Number)
Foreign buyers need a NIT to complete a property purchase. This can be obtained from the DIAN (Colombian tax authority).

Transfer Funds Through a Colombian Bank Account
All funds for the purchase must be transferred through a Colombian bank account to comply with foreign exchange regulations.

Sign the Escritura Pública (Public Deed)
The sale is finalized when both parties sign the public deed at a notary’s office. The notary will ensure all legal requirements are met and register the property in your name.

Pay Taxes and Registration Fees
Property transfer taxes and registration fees (approximately 1.5-3% of the purchase price) must be paid to complete the transaction.

Tips for Foreign Buyers
Hire a Lawyer: Legal counsel ensures all paperwork is in order and protects you from potential fraud.
Understand Visa Requirements: Owning property in Colombia does not automatically grant residency, but investments exceeding a certain threshold can qualify you for a visa.
Be Aware of Taxes: Property owners must pay annual property taxes, and rental income may also be subject to taxes.
With its welcoming culture, beautiful scenery, and strong real estate market, buying property in Colombia can be a rewarding experience. By following the outlined steps and seeking professional guidance, you can navigate the process confidently and secure your dream property.