Borderless Boss

Tag: realtor

  • Colombia Real Estate Guide for U.S. Citizens: Legal Requirements & Buyer Checklist

    ✅ 1. COLOMBIA PROPERTY PURCHASE CHECKLIST (Straightforward + Safe)

    Before You Make an Offer

    • ☐ Pull Certificado de Tradición y Libertad (title & lien history)
    • ☐ Confirm seller identity with Cédula
    • ☐ Verify Catastro records (property taxes + cadastral info)
    • ☐ Confirm no outstanding:
      • ☐ Predial tax
      • ☐ Service bills
      • ☐ HOA/admin fees
    • ☐ Check occupancy status (no hidden tenants)

    Offer & Contract

    • ☐ Negotiate price, terms, timelines
    • ☐ Draft Promesa de Compraventa
    • ☐ Add penalty clause (usually 10%)
    • ☐ Determine who holds deposit (preferably fiduciaria)

    Financial Requirements

    • ☐ If foreign money: file Formulario 4 with Banco de la República
    • ☐ Use a Colombian bank or fiduciary service for clean transfer
    • ☐ Keep FX paperwork — you’ll need it to take profits out of the country

    Pre-Closing

    • ☐ Get updated Certificado (things change overnight here)
    • ☐ Confirm tax clearance again
    • ☐ Prepare for notary fees + registration costs (1.5–2%)

    Closing

    • ☐ Sign Escritura Pública at Notaría
    • ☐ Pay balance
    • ☐ Collect certified copies of deed

    Post-Closing

    • ☐ Follow up on Registro (this is your true ownership)
    • ☐ Update Catastro records
    • ☐ Transfer utilities
    • ☐ Transfer HOA
    • ☐ Insure property

    2. FULL GUIDE: HOW BUYING PROPERTY IN COLOMBIA ACTUALLY WORKS

    STEP 1 — Title Investigation

    This is the make-or-break step.
    You’re looking for:

    • Embargoes
    • Mortgages
    • Court claims
    • Liens
    • Illegal subdivisions
    • Pending inheritance claims

    Colombia protects buyers if you check the registry — if you don’t, you’re on your own.

    STEP 2 — Seller Verification

    You confirm:

    • Seller is the legal owner
    • No other heirs/partners have rights
    • Property boundaries match Catastro
    • No unresolved debts

    Many properties here are inherited without proper paperwork. This kills deals.

    STEP 3 — Promesa de Compraventa

    Think of this like a binding Option + PSA combined.

    It includes:

    • Full legal description
    • Price
    • Deposit amount
    • Payment timeline
    • Closing date
    • Penalty clause (usually 10% of purchase price)

    Once signed, both parties are locked in unless they’re willing to lose money.

    STEP 4 — Deposit

    Deposits aren’t held by a title company (those don’t exist the same way here).
    Safer options:

    • Fiduciaria (trust company)
    • Attorney
    • Notary-managed escrow (rare but possible)

    STEP 5 — Foreign Investor Registration

    This is where U.S. buyers often get burned.

    If you want to pull your money back out or prove foreign investment status for visas, you must register the incoming funds using:

    👉 Formulario 4 (Registro de Inversión Extranjera)

    Without it, you can buy — but you cannot repatriate.

    STEP 6 — Notary Closing

    Notaries are powerful in Colombia; they function like attorney + title office.

    You sign the Escritura Pública listing:

    • Buyer
    • Seller
    • Price
    • Terms
    • Legal description

    Notary collects:

    • Taxes
    • Transfer fees
    • A portion of recording fees

    STEP 7 — Registro

    The deed goes to the Oficina de Registro.
    This is the only moment where you truly become the legal owner.

    Once they enter it into the system, you are untouchable.

    STEP 8 — Catastro & Taxes

    Final step is updating:

    • Catastro
    • Predial
    • Utilities
    • HOA

    Congrats, you own it.