Most sellers of real estate in Colombia do not count on a property appraisal.
We advise our clients to get an appraisal to get an indication of the property’s value, the appraisal will specify the value of the land plot and of any existent construction.

The commercial value is the agreed-upon price between you and the seller.
The Public assessed value in Colombia is equal to the Cadastral appraisal which will determine the property tax. It is usually around 50% to 60-70% for urban properties and around 50% for rural properties.

In Colombia there is no regulation of agents’ commission fees. The norm is 3% for urban properties and 5% for rural properties. This commission is a fee agreed upon between the seller and the Agent.

Yes, almost everything in real estate is negotiable.

If our client gets cold feet about a property that is always controlled through standard clauses in the sales contract. Know that the Buyer in any case will have to forfeit the earnest money.

Earnest money is similar to a deposit when renting a place. It is made in good faith to demonstrate to the seller that the buyer’s offer is legitimate. We may ask for the earnest money as a deposit in the form of a bank wire or cash. The amount is 2% of the selling price and takes the property off the market. The earnest money will give the buyer extra time to conduct a title search, get a property appraisal and if needed obtain financing. If the Buyer back out of the contract for an approved contingency the Buyer will get the earnest money back.

A mortgage is a type of loan to finance a property. According to Colombian banks it is possible, the reality shows this is very difficult. If you need a mortgage, it is advised that you get approval from a local bank.

An escrow is a term that refers to a neutral third party hired to handle the exchange of money,
property transaction, and related documents. The escrow holds the money and documents in a trust until all terms and conditions of the sale are satisfied. In Colombia it is for Fiduciaries to handle the account and usually used for larger investments. For smaller projects we use an independent law firm securing both the interest of the Buyer and the Seller.

Yes. The standard is full ownership as you are used to from your home country.

No. But if you need to open a banc account you will need a Visa and apply for a Colombian ID card, a bank account will often be necessary if you receive rental, other income or have to pay maintenance fee and other running expenses. As a property owner or investor, you are entitled to a Visa M (Migrant).

Yes. You can sign a Power of Attorney, notarize it, get it apostilled, and then translate the
authenticated document to Spanish by an authorized translator. If for instance you do the process in the US you could authenticate it at an online US Notarial service, get it translated by an official translator and send the original documents to us. In this way our lawyer or a lawyer of your choosing can represent you in the purchasing process and sign the sales contract.