Property purchase process
1. Real Estate Agent / Realtor
2. Select a property
3. Submit an Offer
We require a $ 1,000 USD earnest funds deposit in order to submit an offer. The earnest funds deposit can be made via PayPal or cash. If we cannot reach an agreement on terms and price for the property, the deposit is 100% refundable. If we successfully reach an agreement the deposit goes towards the final purchase price.
4. Sign a Private Sales Agreement
Once price and terms have been agreed upon, the buyer and seller will execute a Private Sales Agreement that outlines the price, terms, conditions, and contingencies of the purchase. This document can be signed digitally and does not require either party's physical presence in Nicaragua for execution.
5. Choose a Lawyer in Nicaragua
6. Make a 10% deposit
After executing the Private Sales Agreement, the buyer will make a 10% deposit into an escrow account, which will officially remove the property from the market and mark the beginning of the due diligence process.
This deposit is refundable if there are any significant and incurable problems discovered during the due diligence process
7. Complete Due Diligence and Prepare for Closing
After the due diligence is completed and approved, the final steps of the purchase can occur. The buyer is responsible for sending the remaining 90% of funds to the escrow account and the seller is responsible for providing three documents from local government offices: Municipal Tax Solvency, Free of Liens & Encumbrances Certificate, and an Approved Cadastral Map.
Once all of the funds have been received by the escrow account and the seller has provided all of their necessary documentation, the closing can occur. At the moment of closing, the buyer becomes the legal owner of the property and the seller is sent their funds.
The typical closing time from execution of the Private Sales Agreement to closing is approximately 30 days.
9. Register the Property
After the sale, the buyer’s lawyer will take the title and accompanying documentation to the appropriate government offices to register the property in the buyer’s name and pay all applicable taxes and fees. This process typically takes a few months from the time of closing.
10. Complete Property Registration
When the property is duly registered, the new title is noted showing the buyer as the registered legal owner of the property. The buyer is now able to sell the property if they choose.
An escrow agreement is a contract that outlines the terms and conditions between parties involved, and the responsibility of each. Escrow agreements generally involve an independent third party, called an escrow agent, who holds an asset of value until the specified conditions of the contract are met