Quick Tips for Property Investments in Colombia
Special themes to keep in mind when purchasing a property in Colombia. Items you would not think about in other countries. From money laundering controls to squabbles between non-licensed “realtors” over commissions, we list a few things to watch out for.
Discuss Real Estate Agent & Referral Commissions with Seller / Buyer
* often people who refer others to the deal want a cut. we have seen as many as 4 people show up for commissions after the purchase agreement is signed.
Examine Condo/Property Administration Yearly & Monthly Meeting Acts
* look for upcoming extraordinary fees such as elevator repair/lawsuits
Add an emergency 10-day clause to extend the purchase agreement closing date
If you are a buyer and you don’t yet have a bank account in Colombia, then add a paragraph to the agreement regarding banking legalization issues if you don’t have a bank account
Search property title history for succession processes, criminal embargos, land possessions or divorce processes
Declare full “COMMERCIAL” value on the title at closing or you may face a 400% fine from the government
When studying the current tax or title value of a property beware of very low tax declarations. Sellers in these situations often do not want to declare the full value at closing.
Many Colombian sellers often try to pass on capital gains tax to buyers in Colombia. Negotiate the lowest price on a property then try to spilt the capital gains tax with the seller if you really want the property.
Do not use the same attorney as the seller of the property or that your realtor uses. These are conflicts of interest. Realtor attorneys and sellers’ attorneys often do not do good title studies since they have pressure to get the Colombia property sold at any cost.
If you are buying a lot or a home on a piece of land in the country side be sure to get an official property survey done to confirm boundaries.