Nicaragua is an extraordinary country with verdant rain forests and exotic beachfront properties.  Owning a piece of Nicaraguan real estate is a prime investment.

As with all countries, buyers should exercise great care when purchasing real estate.   Comprehensive title searches generally reveal ownership uncertainties.

Steps To Buying and Registering Land:

1. To buy a property in Nicaragua, you can either do most of the work yourself or hire local specialists. When hiring local specialists, it is important to agree at the offset on a fixed fee for their services.

2. Identify the property of your choice, usually by the recommendation of a friend or a local real estate agent .  Property whose ownership changed hands during the 1980s should be reviewed closely with an expert.

3. At this point, you may either hire a local attorney or proceed on your own to ask the seller for a copy of the property's title (escritura de propiedad), evidence that it has no liens on it (libertad de gravamen), and its "certificado registral."

Often, owners are hesitant to provide copies of titles.  In such cases, you may ask the seller for the information shown on the title (property number, volume number, page number, entry number) or for a copy of the  property's registration (certificado registral) showing the last three owners and the absence of liens.

4. Next, have a lawyer revise the documentation (escritura de propiedad, certificado registral, and libertad de gravamen) to verify that the property seller has a clear title.

5. After you have verified the land has no liens, a notary can prepare a sales agreement.

6. After the transaction, you or your attorney may then register the property in the Registro Público de la Propiedad Inmueble. To be considered the legal owner of the property, you should possess the property title properly annotated by the registrar.

Real estate taxes are 1% of value of the property and are paid to the Municipal Government.  Farmland of up to 30 manzanas (42.6 hectares) is exempted from real estate taxes.

Local insurance firms offer coverage for fire, earthquake and floods; however, acts of war are not covered.