Property Closing Process For Colombia:
Colombiacasa always seeks to give you the best possible advice and service. We offer legal help through a third party service with Mauricio Monsalve the lawyer we use for our property closings. Below we offer a step by step guide to the process of a property closing in Colombia:
1. Bank account opening. To bring your money to Colombia and register it as a foreign investment (that will allow you to opt for an immigrant or resident VISA) you will have the contacts of investment banks that will assist you 100% in English in the process of opening your bank account.
Estimated time: 2 – 3 weeks (depends on delivering all paperwork required)
2. Collect Key Information and Property research: Look at the legal situation of the property in order to discard any kind of irregular issues as mortgages or liens that could obstruct the buying and selling process, we gather all the relevant documentation on the property and the seller to conduct a proper review of it.
For this research, it would be to check at least the following documents: Certificate of Tradition within 30 days of the property closing. (Certificado de libertad y tradición)
The seller’s public deed of sale (The one through which the seller
bought at the time the property).
Proof of the Last municipal taxes paid in full. (Pago de impuesto predial).
Proof of the valorization payment. (If applicable) (Pago de valorización).
Estimated time: 2 – 3 business days.
3. Seller Criminal Background Check (CBCH). We highly recommend conducting a CBCH on the seller to avoid risks associated with money laundering, dirty cash and narcotics. This study is optional and is carried out by an independent company.
Estimated time: 1 – 2 business days.
This service has an additional fee of US. 50.00
3. Elaboration of the purchase and sale contract (Promesa de compraventa): This contract gathers all the elements and important points of the negotiation, such as the price, the payments form, commissions, deadline for delivering the property and any agreement reached by the parties.
Estimated time: 3-5 business days.
4. Public Notary Office procedures: Collecting all the documents required by the office in order to elaborate the public deed of sale that becomes official the sale and purchase.
Estimated time: 2 – 3 weeks (depends on the internal procedures of the Public Notary Office).
5. Accompaniment in the public deed signature: Being present in the public deed signature with the client, or even sign the deed if necessary when the client is for example away from the city or any similar situation through a POA. The lawyer involved here will help translate the process for clients who do not speak Spanish.
Estimated time: Assigned date by the Public Notary Office when deed is ready signed and witnessed by the Notary.
6. Registration of the Public Deed: The last step of the process consists in the registration of the deed in the Registration Office. Most of the time this procedure is done by the Public Notary Office, but when is necessary, the service includes this registry. The closing costs (taxes and registration) will depend on the value of each property. They can correspond between 1.5 to 2% of the cost.
Estimated time: 15– 20 business days (depends on the internal procedures of the Registration Office). This is just a formality and the client will receive a copy of the deed and a new certificate of liberty. (This translates to a clean title of the property purchased.)
Legal fee cost:
For this Legal accompaniment the fees are $3.800.000 COP (approx: $990.00 USD) be paid 50% at the beginning and 50% with the final deeds signature.