Investing in real estate in a foreign country can be unnerving to any investor. The possibility or fear that foreign investors can be scammed often discourages most investors from foreign properties. If you are planning to buy property in Colombia, you can rest easy knowing that there are all manner of safeguard that protects the interest of international investors. Making a successful investment in Colombia comes down to doing due diligence on your part.
Do a Title Search
As much as you might feel confident that a certain property is legit, it is imperative to conduct a real estate title search. Conducting a property history/study might also help you unearth critical details about the property you are about to buy. Doing all this goes a long way in helping you confirm that the property is free of any mortgages or any legalities that might hurt the purchase process. That said, a public record or certificate, or what they call the “Certificado de libertad” is very important here.
The Purchasing Agreement
After you are sure that the house you are planning to buy is okay and all details shared by the owner are consistent, you can now proceed and formalize the negotiations. A document known as the “promesa de compraventa” serves to compel the parties involved to fulfill their responsibilities. It explicitly defines everything about the nature of the transaction including payment terms, closing dates, and even penalties for non-compliance among other things.
Closing the Sale
Closing or signing of the title is only done after the transacting parties are comfortable with the terms and conditions of the deal. Also, they need to ensure that all required paperwork is in order. This should take 2-3 weeks for a cash transaction and if the property has no mortgages. During this time, the services of an attorney are vital to ensure ownership is successfully transferred.
Registration of the Deed
After the contractual parties have satisfied the necessary legal requirements, the next and most important step is to register the deed. Here, your lawyer will serve you with an updated copy of the “certficado de libertard” showing that all legal requirements have been with what is now your property.
Investing in the Colombian property market means adhered to the set regulatory frameworks. FAR International is known for making investing in Colombia easy. You are also assured that your investment rights as a foreigner or local will always be protected.