Buying Off Plan / Pre Construction Property in Colombia

Home Colombia   Buying Off Plan & Pre Construction Property in Colombia

Before buying a property in Colombia, please take in account the following simple steps when buying your dream home in Cartagena, San Andres or Santa Martha

1. Reservation Deposit:

Once you have found your ideal property in Colombia, you reserve the property with a reservation deposit. This is usually 10% of the property price. This reservation deposit will give you the guarantee that the chosen property will be reserved under your name and for the price fixed at that moment. In some ocasions the amount can be higher, up till a 10% of the purchase price.

2. Exchange of Private purchase contract:

After the initial reservation deposit has been paid, you have up to thirty days to exchange the private purchase contract. This basically means that you will pay the remainder of the deposit required. This can be undertaken by your lawyer, who can exchange contracts on your behalf, if you are unable to attend.

3. Completion at the Notary:

On the assigned day of completion, the buyer and vendor (or their authorized representatives ) will be present at the office of the notary to sign the Escritura de Compraventa ( the title deed) The notary does not check any terms, but certifies that both parties have agreed to the terms stated (the notary is in place to only witness both parties' signatures).

At this stage the property becomes your possession, and your lawyer is now required to fax details of the title deed to the local land registry office, confirming you as the new owner. Your lawyer will also arrange and / or process payment of taxes and fees.

It is advisable to make sure your property and contents are fully insured at this stage. Your lawyer or estate agent can undertake this for you.

4. Costs Incurred:

There are three fees that are required to be paid:

Lawyer's fee, the notary fee and the property registry fees, plus taxes. You will always have to calculate approximately 10% on top of the sales price to cover all your costs.