How to buy Real Estate in Colombia
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Loading... - Dante Reyes
- 12 Sep 2022
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When thinking about how to buy property in Colombia consider the following tips outlined in this article. Our experienced real estate attorneys help individuals, families and businesses with all real estate sale, purchase and rental issues. In Colombia it is important for Buyers and Sellers to use licensed attorneys to perform the following tasks:
â– First and Foremost, Use of an INDEPENDENT LAWFIRM OR ATTORNEY is EXTREMELY IMPORTANT. DO NOT USE IN HOUSE ATTORNEYS FROM REAL ESTATE AGENCIES! For obvious reasons, your realtor and their preferred attorney have conflicts of interest. A realtor does not get a commission if a deal does not happen. A preffered attorney for a realtor will not get future business if they do not collaborate with the realtor on problems. Your attorney will look out for your needs but must be independent with no conflicts of interest! Realtors will try to influence deals and push them through, hiding problems, and creating future issues which are passed on to YOU the new buyer.
â– The Colombian Foreign Investment Regulations – The first purchase in Colombia as a foreigner should always be done with someone who understands how to manage the handful of agencies involved in the transaction. If not you can end up with huge problems on your title, visa, and fines for tax evasion or money laundering. Most attorneys and realtors are not familiar with the big picture when it comes to Foreign investments. Correct planning must take place before you even send money to Colombia for purchasing real estate! This process is referred to as legalization of a direct foreign investment, but following traditional old fashioned realtors will get you in trouble as they usually are trying to avoid taxes at property closings. The government audits ALL foreign investments but most local transactions between Colombians are not audited, so Colombian custom is to claim 50-70% lower closing costs (final sale price). If you do this with a direct foreign investment the government will visit you in the future, and it will not be pleasant. Read More...
