ovniologo
8/24/2015 08:28 EST
Just read this info about some problems with buying land. How I can be sure that I don't fall into a problem like this? ANy recomendations of how to do the process? http://nicaragua.usembassy.gov/property.html
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KeyWestPirate
8/24/2015 09:40 EST
This is a complicated question that has been addressed numerous times here.
You are right to be concerned. There is everything from a Canadian re-selling the same lots on the coast (google Isla Mariana Nicaragua for the story) for ten years, to opportunists selling a piece they do not own, and never did.
1. Don't get in a hurry.
2. Come back without the seller and talk to the neighbors. More than anyone they will know what is going on. Do this even if it is a house you are buying.
3. Don't get in a hurry.
4. NEVER use a lawyer recommended by the seller. He will be a complicit partner in the fraud.
5. Search the site and others for posts about "buying land in Nicaragua".
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dollyd
8/28/2015 08:41 EST
Always make sure there is a title and that you have a lawyer check it out thoroughly before you give ANY money. Ask all the neighbors who owns the property, they will know and are your best source of information. Just because there is a title that looks good does't mean the title is food.
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elduendegrande
8/28/2015 11:26 EST
One of the many things you will find is that the person who claims to own the property is not the owner or the sole owner. Sometimes this is fraud, sometimes it is just family politics. For one, it is common in Nic. for property titles to remain in the name of a dead family member for decades after they die, only to be looked into when one of the heirs wants to sell. Fixable, but you and your lawyer need to do the legwork and find who is the legal owner and have all the heirs sign off.
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glockdiver69
8/28/2015 11:45 EST
That is correct elduendegrande. I would add two other things. One, you should only use YOUR OWN attorney and not "their" attorney or an agents "in-house" attorney. You want someone who answers to you and understands what you want to do with the property (live in, farm, rental, build...). Second, make sure not only the title is good but also all past taxes and liens have been paid BEFORE you move forward. A good attorney should do this, but it can't hurt to remind them. It also demonstrates that you are somewhat educated on the process.
Good luck and keep us posted.
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ricktee
8/28/2015 13:10 EST
Also check out the accuracy of the survey.
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timwood202000
8/29/2015 16:31 EST
Also, have your lawyer prepare a contract of sale and get it signed before moving forward. I have had 4 sellers try to change the price or renege on the deal after we had a "handshake" agreement.
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elduendegrande
8/29/2015 16:50 EST
Keep in mind the plano maybe meaningless. A topografo will write down anything you want, "this post to that rock"; the plano only has meaning if the gps coodrinates are the exact same as what is written on the escritura.
since property records were put into a computerized gps data base a few years ago (thanx, France) this is less of a problem and it is supposed to be checked before they accept the escritura, but you and your lawyer check yourself before it goes for recording. It has to match up with the recorded data for the adjoining properties.
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KeyWestPirate
8/29/2015 17:30 EST
I can one-up that one.
I had my first seller try to bump the price in the lawyer's office, with the money on the table, he wanted $1800 more for a small "lake" (more like a puddle) on the property.
Everybody just stared at him, speechless, and I stood up and started to gather up the money. The agent said "Wait!" to me, and started talking in very rapid Spanish to the seller. That was his commission about to leave the room.
This was AFTER we found a $5000 lien on the property that neither the seller or the agent had disclosed. It took two weeks to get the lien resolved.
It was an old lien, but my lawyer found it. The lien holder would have been on MY doorstep the next day demanding to be paid.
THEN, I watched the seller palm a $100 bill out of the corner of my eye. I had counted out the money in $10K piles twice, and as he is counting, he's: "This one is $100 short". I let that one slide.
Yes, you should start out with the Promesa de Compra y Venta,, but understand, and this is VERY important, There is no escrow like we are used to in the US.
If you put up ANY good faith money, the amount should be VERY small, if the deal tanks, that money will probably be lost. Somebody will have spent it, and despite your legal right to it, you are NOT going to see it returned.
Better to settle 100% when the property is ready to sell, in YOUR lawyer's office, in front of the agent, and anyone else involved. That's how the NICA's do it, only Gringos put up deposits.
If the agent is not paid out of the proceeds (money on the table), he will come crying to you.
Be VERY clear about WHO (buyer or seller) is paying for WHAT. Try to set the money aside at the settlement for anything like the surveyor who did the plano, etc, etc., any other payments agreed to (perhaps someone cleared the land of several years' accumulation of brush and the seller agreed to this cost).
The seller will run with the money. Interested parties will come to you, knowing that they are not going to get paid by the seller. They may not have a legal claim, but they know that you have money. The guy who cleared your brush is probably your neighbor. He'll never see the seller again, but you will live with him everyday.
Nicaragua is the Wild West. We have a Canadian gentleman and his Nicaraguan wife selling the same lots over and over again, for many years. They are clearly protected by someone important.
Most of these lots are sold at "Seminars" in the US, Europe and Canada. Google Kevin Fleming, Isla Mariana.
The best advice that can be given is:
Don't get in a hurry,,, don't get in a hurry, don't get in a hurry; then talk to the neighbors, talk to the neighbors, It's amazing how few actually do the due diligence, relying on a handshake and a smile. DOES NOT WORK here.
A good lawyer is a gem, but honest lawyers who like to work are very hard to find. They do exist, however, part of your due diligence.
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prpcof
8/31/2015 15:29 EST
Hi,
In my case I had so many different offers bogus and maybe good I realized that I was out of my league. Using the local expats and what I felt were the honest locals I decided to only work through my lawyer. I let her do all the negotiating. I asked her to speak on my behalf with a power of attorney. Told her I did not want to see the seller till the exchange of money was needed and recorded. She handled the sale and the clearing of the Title. I wanted to look like a absentee buyer although I was involved and present through all the important steps. I wanted the seller to act with their lawyer the someway. So far I have a clear title paid with a recorded wire transfer.
My point like many others, work hard to find a trustworthy attorney as far away from the seller as you can. And with that all said cross your fingers and good luck!
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elduendegrande
8/31/2015 20:12 EST
Me, too! I like that phrase "so far I have a clear title" So Nica.
I wonder when some of the old gringos start dying off how many of our titles will be contested. The honest people are honest but the vultures still keep circling.
Anything can go wrong, frinstance old titles for San Nicolas may be recorded in Leon, not Esteli, because SN used to belong to Leon. Probably other parts of the country with similar problems.
Yep, a good lawyer should know this, a good lawyer should communicate this, a....
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