The real estate purchase process is essentially a two-tier process involving three parties: the buyer, the seller, and the notary.

Once you have agreed upon a purchase price with the seller, the notary will prepare a promesa de venta (promise to sell). This is a three-party agreement, signed by the buyer, seller, and notary.

Once again, a testimonio is prepared. This is taken to the property registry and an appraisal of the property is done.

An appraisal certificate is issued and submitted to the IRS, along with testimonio. Once the transfer taxes have been paid the testimonio is recorded in the public registry office at the local municipal.

To buy property in Nicaragua there are basically seven steps to follow:

1. Be prepared to walk away.
2. Find the proper lawyer that you understand and who has a good reputation.
3. Use an escrow account
4. Obtain the Escritura (Deed) and Plano (Property Map)
5. Obtain the Historia Registral (Property History), Solvenica Municipal (Property taxes paid), Libertad de Gravamen (Property Liens)
6. Have the topographer check the property boundaries
7. Obtain title insurance

The burden of obtaining items 4 and 5 should be placed on the seller and the documents must be recent within 30 days. Once the seven steps have been completed and all the money is in the escrow account then a certified check can be written for the full amount.

This is given to the seller at the exact same time the Escritura is signed over to the buyer.

This keeps the buyer in control of the entire process. A trusted agent with Poder (Power of Attorney) may be used to sign in your absence.

Once you have bought your new home, you want to make sure you can spend as much time in your new home.

The easiest way to begin your visa and residency requirements is to simply enter Nicaragua on a plain tourist visa (you get a 90 day tourist visa upon entering Nicaragua unless you are from one of a few restricted countries) and deal with getting a longer stay visa once you are in the country.

There are two types of residency visas. When obtained they grant you officialdom in the form of your very own cedula (residency card).

There is a permanent residence visa and the investor’s residence visa.

They are nearly identical, with the exception of one additional requirement for investors, and both require a number of authorized and translated documents.

Once in Nicaragua, begin the process by going to the immigration building and requesting a form for the appropriate resident visa.