How To Buy Real Estate
To buy real property in Colombia you usually need to start with the execution of a purchase promise wich is then completed with a purchase agreement. By this way, the seller agrees to transfer the property rights. This agreement must be executed by means of a public deed at a Notary Public´s office. In order to do so, the following documents are required:
- Certified copy of the real estate tax paid on the year of the purchase of the real property.
- Original appraisal good standing certificate issued by the Urban Development Institute (Instituto de Desarrollo Urbano - IDU).
- Original home owner association fees - “HOA fee” – good standing certificate if the real property is subject to a condominium regime.
Property rights over real estate must be transferred by means of the registration of the acquisition title in the Public Instruments Registry Office (Oficina de Registro de Instrumentos Públicos). The purchase of the real property ends with the formal delivery of the good.
The costs related to the process depend on the price of the good acquired. The list of the costs for the purchase of a real property is as follows:
- Notary rights: paid by the seller and buyer evenly.
- Withholding at source: (1% of the price of the real property).
- Registry tax: paid by the seller and buyer evenly (1% of the price of the real property).
- Transfer and appraisal certificates: paid by the seller.
- Registry rights: paid by the buyer (0.5% of the value of the business).