- We help you find the right property for the right price at the right location.We will discuss your needs and arrange to show you properties that fit your criteria. We will advise you of any factors that may affect your choice of property.
- Select your desired property. We will assist you in making an offer on your chosen property including sales terms. Seller will accept, decline or counter-offer. During this time, a cursory investigation of title is performed.
- Once offer is accepted by seller we will ask for a 10% deposit which is kept until the closing, it does not go to the seller. The sales contract is written then signed by seller and buyerIncludes terms, sales price, estimated closing costs and identification of power of attorney. Contract also explains that your deposit will be returned if any irregularities are found. We will need a copy of your first two pages of your passport.
- Document procurement. All documents should identify the property by its legal description including the Finca, Tomo, Folio and Asiento identification numbers.From the seller we need:Copy of the deed (escritura)Site plan (plano) if seller does not have, we will have a surveyor create or provide itLetter of no objection (LNO) if near lake, ocean, river or result of agrarian reform title. The LNO usually is completed after the closing since it may take months to complete.
- Document processing with the assistance of a lawyer.You can provide the lawyer or we can suggest a lawyer but you have your choice.At this point a detailed title search is being performed, usually at least 30 years back.The property is investigated to ensure the taxes and other obligations to government are paid and up to date i.e. garbage pickup fees, cemetery fees (this research is called the solvencia).Ensure no liens, ownership issues nor encumbrances against the property (libertad de gravamen).All utilities are paid up to date by the seller, surprisingly the utility companies will expect the new owner to pay and does not pursue the seller.If there is a cuidador (caretaker) or other on-site employees, we will ensure all obligations to these employees are resolved by the seller i.e. contracts may be renegotiated.
We will work to resolve all issues and ensure seller completes their obligations.
Power of Attorney
If you plan to be out of the country at time of closing, you can execute a power of attorney (POA).
The cost of this is around $30 and allows us or your chosen representative to perform the closing procedures for you.
The POA is limited to buying this property.
These procedures usually take 2-4 weeks depending on difficulty on obtaining documents, issues uncovered, lawyer availability, etc.
Closing costs including sales commission are normally paid by the buyer. You will be provided a detailed list of closing costs to the best of our knowledge. Some of the fees are based not on the sales price but on a symbolic or catastral value which may be determined after the closing during the registration process. Catastral value is normally much lower than the sales price. Also, the magnitude of the sales price may change the percentages. For the lawyer, it is almost the same amount of work for a small sale as a large sale.
Commission costs are normally 6% of the sales price and 10% if the sales price is under $40,000.
Normally closing costs are around 3 to 3.5% of the sale price
1% to the lawyer, Managua lawyers charge sometimes 1 ½%
The lawyer’s fee includes all document processing and creation
Registration fees are usually around 1% of the catastral value to a max of C$30,000.
The property gains tax (DGI or la renta) which is 1% up to $50K, 2% 50K to 100K and 3% over 100k of the catastral value. This is usually paid by the seller since it is an income tax.
You will transfer the remaining purchase funds to us just prior to the closing date.
At the Closing
At the closing will be the seller, buyer’s attorney and buyer (seller and/or buyer may be represented by whomever holds the power of attorney)
You will sign the new deed (escritura) and provide the remaining purchase funds.
You are now the owner of the property and in full possession.
Ensure you have a copy of the unregistered deed (testimonio)) and the plot (plano).
Post Closing Processing
The attorney proceeds with the registration process i.e. new deed (escritura) is registered.
Fees are paid and the property is usually registered within 1 to 6 months.
If a letter of no objection is required, this may take 6 to 8 months.
When documents are completed, they will be given to the buyer.
Since the catastral value of your property is unknown until the registration after the closing, the exact amount of your fees is unknown. A settling then occurs and we rebate any overpayment on the registration fees or charge you for the underpayment. Similarly for the seller, we determine the exact amount for the property transfer tax and settle the difference.
As any property owner, you have rights and obligations. Remember that you are responsible for paying taxes, paying utilities, paying for employees and providing security for your property. You also have a responsibility to maintain your property in consideration of your neighbors. This is especially important to remember if you do not plan to live full-time in Nicaragua.
Casa Granada Properties assumes no responsibility for your property after the closing.
We can assist with providing names of contractors, architects, etc.