Buying property in Colombia involves several steps, including legal requirements and financial considerations. Here’s a detailed guide on how to buy property in Colombia:

How to Get Started Buying Property in Medellín

1. Research and Choose a Property

• Determine Your Needs: Decide whether you want a residential, commercial, or investment property.

• Location: Research different neighborhoods and cities. Popular areas for foreigners include Bogotá, Medellín, Cartagena, and Cali.

• Property Type: Choose between apartments, houses, fincas (rural properties), and commercial properties.

2. Use a Checkmate Real Estate Agent

• Local Expertise: Work with a reputable real estate agent who is familiar with the local market and can guide you through the process.

• Legal and Financial Guidance: Agents often work with lawyers and financial advisors who can assist with legal and financial matters.

3. Legal Representation

• Hire a Lawyer: It’s crucial to have a local lawyer who specializes in real estate to ensure all legal aspects are covered. They will handle due diligence and ensure the property title is clear.

4. Property Visit and Inspection

• Visit the Property: Physically inspect the property to ensure it meets your expectations and is in good condition.

• Property Appraisal: Get an independent appraisal to determine the market value of the property.

5. Offer and Negotiation

• Make an Offer: Once you decide on a property, make a formal offer through your real estate agent.

• Negotiation: Negotiate the price and terms with the seller.

6. Preliminary Agreement (Promesa de Compraventa)

• Sign a Preliminary Agreement: This is a binding contract outlining the terms of the sale, including the price, payment schedule, and any conditions.

• Down Payment: Typically, a 10% down payment is required when signing this agreement.

7. Due Diligence

• Title Search: Your lawyer will conduct a title search to ensure there are no liens or legal issues with the property.

• Verify Documents: Ensure all property documents are in order, including the title deed, cadastral certificate, and tax records.

8. Final Payment and Deed Transfer

• Arrange Financing: If you need a mortgage, arrange for financing with a local or international bank.

• Final Payment: Pay the remaining balance of the purchase price.

• Sign the Deed: Both parties sign the final deed (Escritura Pública) at a notary’s office.

• Register the Deed: The notary will register the deed with the local land registry office (Oficina de Registro de Instrumentos Públicos).

9. Additional Costs

• Notary Fees: Typically 0.3% to 0.5% of the property value.

• Transfer Tax: Approximately 1% of the property value.

• Registration Fees: Around 1% of the property value.

• Legal Fees: Varies, often around 1-2% of the property value.

10. Obtain a Cédula de Extranjería

• Register the Property: Within 15 days of purchase, register your property with Migración Colombia to obtain a Cédula de Extranjería if you plan to stay long-term.

Conclusion and Next Steps

By following these steps and working with knowledgeable professionals, you can successfully navigate the process of buying property in Colombia.

If anyone complicates things, it’s best to avoid them. Camilo is our expert real estate negotiator who can secure deals before they even hit the market. We have a trusted team that speaks fluent English and meets American standards.

We offer consultations via Google Meet before you visit to create a tailored plan, ensuring you can take full advantage of this excellent opportunity to invest or live abroad.

Buying property in Colombia is straightforward with the right team. We simplify the process for Americans looking to invest in Medellín and can assist you in making your investment this year.