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Glossary of Legal Terms

Five papers that are necessary to verify the legality of land and obtain title insurance:

1)    Escritura– The Escritura is the legal document that demonstrates who is the owner of the land.  It could be compared to a title deed.  In the Escritura, the first person is the seller and the second person is the buyer.  The inscription shows that the name is in the name of the new buyer.  At the end of the Escritura, there needs to be a “numero de inscription” (Inscription Number) that demonstrates

If the property is not inscribed…The owner must pay taxes a la Alcaldia (1% a “valor de la venta”/value of the sale), go with the plano original and go to the Catastro for a “Certificado Catastral” and then go to la Renta (Taxes) to pay 4% value of the sale tax (4% valor de la venta).  After all of this, go with everything to “al Registro” who are going to tell you an amount that is necessary to pay the bank (typically less than what you paid for taxes at the bank).

2)    Plano – The Plano is the physical map that shows the boundaries of the land.

3)    Solvencia Municipal – This document shows that the property is free of taxes (that no back taxes are owed)

4)    Libertad de Graveman– This document shows that the property has no liens or outstanding loans on the property

5)    Historia Registral– This document shows the public history of the land for the previous 30 years.  (Previous owners dating back 30 years). If necessary

6)    Certificado de no objection : This is a document from the general attorney of Nicaragua stating that the property is clean and the government has not objection for this to be sold.

 

Other Legal Terms: 

Promesa de Venta – A type of contract by which one party agrees to sell and another agrees to buy a certain real estate. It establishes the deadline to realize the purchase, conditions and penalties in case of withdrawal by any interested parties. Usually, both the seller and the buyer leave a guarantee in order to demonstrate their interest in specific the promise. Should always be performed before a Notary Public, and can register with the Real Estate Registry to avoid default by the seller.

Catastro– Place where the Plano is kept (measurements, physical description)

Registro– Where equal copy of the Escritura is kept

La Ley de la Costa– Law stating that coasts are public and regulated by each individual municipality; typically a 1 year contract for taxes (changes year to year).  Contract could be a 100 year rent or outright ownership, need to verify on the Escritura to see what the status is.

Impuesto de Bienes y Imbueles– Annual Tax (typically .2% of value of property).  Broken into two 6 month payments (June and December).

Escritura Suplitorio– Suplementary Escritura when an original Escritura isn’t          available.  When one sells land with an Escritura Suplitorio (check to make sure everything is ok), the next owner of the land will have a normal Escritura.

 

Terms in Escritura:

Dominio– (te da la escritura) the right in the Escritura to own the land

Possesion– (derecho de vivir) The right to live on the land.

*A good Escritura should include both the Dominio and Possesion.