Buying Property in Colombia: Cheat Sheet
4 DECEMBER 2020
Melissa Bedoya / Natalia Betancur
If you are considering purchasing property in Colombia you should get familiar with key terminology you will hear throughout the process. Below we have summarized important terms you will hear over and over again until you finalize your purchase. We hope you find this helpful.
- Certificado de Tradicion y Libertad: A type of deed certificate that outlines the current legal status of a property including current and past ownership, the existence of any liens, mortgages and miscellaneous past due charges. This document is essential to finalizing a formal title analysis in advance of any potential purchase.
- Embargo: Lien. These are typically filed against a property to prevent the transfer of title until a specific debt is settled.
- Escritura Pública: A type of public deed issued by a notary that verifies the legal capacity for the transaction to occur. This document is generally finalized once the purchaser makes payment to the seller pursuant to the “Promesa de Compraventa.”
- Gastos de Compraventa: These are the closing costs and related transaction fees that are assessed in connection with the purchase of a property.
- Hipoteca: Mortgage.
- Impuesto Predial: Annual property tax based on the registered value of the property. Property owners are required to pay this tax on a quarterly basis.
- Oficina de Registro de Instrumentos Públicos: Governmental office where official documentation confirming transfer of title is submitted and approved.
- Promesa de Compraventa: A type of LOI/property purchase agreement that lays out all the terms of the potential transaction. It typically includes a clear description of the property being acquired, the purchase price, the method of payment, delivery date and other important deal terms.
© Langon Law Group LLC 2020 All Rights Reserved. This blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with your own counsel to determined how the law applies to your own specific situation.