Real Estate in Nicaragua

Great Opportunity for Smart Real Estate Buyers

The increase of tourism and foreign investment has also spawned improvements to Nicaragua’s infrastructure. A new four-lane highway connecting Granada to Managua and a new Pacific coast tourism highway, (known as La Costanera), promises to have an explosive effect on coastal tourism and real estate values. In the last three years, the government has paved, bricked or repaired more than 600 kilometers of road, averaging almost 17 kilometers a month, mostly on the Pacific coast.  Beachfront property prices jumped 350 percent from 2001 to 2005, according to Coldwell Banker Nicaragua Real Estate.

Good opportunities exist for entrepreneurs who are willing to make a long-term investment in Nicaragua's emerging tourism industry, especially along the Pacific coast.  With the construction of the Pacific coast tourism highway "La Costanera" Nicaragua will be even closer to northern Costa Rica’s Guanacaste, where the development and tourism boom there will carry across the border.

Anyone can buy real estate property in Nicaragua. There is free access to the real estate and credit markets. The lack of clear title on some properties, both urban and rural, should be a major consideration for investors.

Here is some information, on how to buy and sell property in Nicaragua. This information is provided so you may better understand what are the main factors in buying real estate in Nicaragua. You should always consult a reputable attorney before buying and selling real property from unknown owners. To both foreign and local investors, this is a process that requires sound professional advice.

You can safely invest in Nicaraguan real estate, as long as you secure the services of competent professionals, or you buy from reputable developers that have master title insurance policies.

In Gran Pacifica Resort we have invested in a master title policy with First American Title Insurance, just for the piece of mind of our future clients. As a developer we can legally offer our buyers a clean property title, because the master property has been inside a private title since 1911 and it was never affected by agrarian reform conflicts.

In many coastal areas of Nicaragua, buyers can only get a leasing agreement from local municipalities. This is not the case inside Gran Pacifica, you will get a property title after following the legal process of Nicaraguan Cadastre and Registration Office.

To find more about the legal steps to receive your property title inside Gran Pacifica Resort, once you have made the investment. To find more information, contact us at: info@granpacifica.com

If you want to buy property in other parts of Nicaragua, you might want to follow some of the basic duedilligences.

Buying a Property in Nicaragua

Key documents you might request:

• Title of property, properly registered; previous titles if possible.
• Freedom of encumbrance's certification (current).
• Property map properly authorized by the CADASTRAL office, especially when a subdivision of property is being done.
• Municipal property taxes solvency with the property location, declaring if the property is up to date with its tax obligations.

Just in case the property was under the Agrarian Reform of 1979 one should request the following documents before the sale takes place:

• Document from the Rural Office stating that the reform took place legally.*
• Document from the Compensation Office declaring if the previous owners have been compensated for the property.**

* If the property to be purchased is located in the urban area, a certification must be requested from the Office for Urban Title Certification.

** If the previous owner was compensated, then the purchase can be carried with less risk of incurring in legal conflicts due to any past expropriation that took place.

What to Avoid in Property Titles

Stay away from properties that have problems, some of these properties are:

• Agrarian Reform Titles.
• Municipal Property
• Supplemental Titles Issued by Court Order

Some Legal Considerations
(Allways check with your attorney for these cases, this is just a summary of some elements to consider)

• Check to be sure the property was not formerly purchased through “Law 85”. This law distributed luxury homes and properties larger than 100 square meters.
• Check to be sure the property was not formerly purchased through “Law 86”. This law distributed smaller homes in popular neighborhoods.
• Check to be sure the property was not formerly purchased through “Law 88”. This law distributed land to poor people through agrarian reform.
• Check to be sure the property was not formerly purchased through “Law 209”. This law was part of modifications to agrarian reform.
• Check that the Title and Deed meet all legal requirements.
• Check to see that the Title is properly registered in the real estate section of the Property Registry Office in the city where the property is located.
• Study the details and history of the property for the last 25 years in the Real Estate Property Office.
• Find out from neighbors if there are or have been any problems with neighboring properties.
• Verify that the owner is in full possession of the property.

Exceptions: The only secure way to buy property that has been affected by Laws 85, 86, 88 and 209 is to have a Settlement Statement issued by the Territorial Ordinance Office, referred to as OOT, which is under the supervision of the Ministry of Finance, and verify that the ordinance is registered in the Real Estate Property Registry.

Title Insurance in Nicaragua

Until 1999, there was not title insurance available in Nicaragua. However, it is now available through reputable firms such as First American Title Insurance. It will make your investment in Nicaragua more secure.

Policies can be purchased in the United States, Canada, or the U.K., and the "coverage" is interpreted under the laws of the country where you purchase the policy.

According to Turalu Brady Murdock who manages the Caribbean and Central American operations for First American, the policies are comprehensive and cover ownership issues, liens, mortgages, contracts, options, or other encumbrances on titles as well as fraud, forgery and rights of access to and from the land. These policies on foreign property also provide you a legal defense, if your title is challenged in the country in which your property is located.

Gran Pacifica can put you in direct contact with top executives of First American Title Insurance, send us your questions to info@granpacifica.com