Purchase and sale of real estate: Requirements and step-by-step instructions

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The real estate purchase contract in Colombia is a legal agreement between a buyer and a seller that establishes the terms and conditions for the transfer of ownership of real estate, such as a house, an apartment, a piece of land, etc. This contract is one of the most important documents in a real estate purchase transaction and is necessary to guarantee the rights and obligations of both parties.

In the purchase and sale contract, the seller is obliged to deliver the property to the seller, and the seller is obliged to pay the agreed price, it is a solemn contract, since it is only valid if it is executed in public deed, and, in addition, it is required to be registered in the Public Instruments Registry Office.

To enter into a real estate purchase contract in Colombia, the following steps must be followed:

  1. Agreement between the parties: The buyer and seller must agree on the terms and conditions of the sale and purchase, including the thing, the price, the method of payment, the terms of delivery and any other relevant aspect. It is important that both parties agree on all points before proceeding to the next stage.
  2. Drawing up the contract: Once an agreement has been reached, the purchase contract must be drawn up. It is advisable to seek the advice of a lawyer to ensure that the contract complies with all legal requirements and protects the interests of both parties. The contract must include detailed information about the property, the parties involved, the price, the payment terms, the obligations of each party, the guarantees, among other relevant aspects.
  3. Signing the contract and notarizing it: Once the contract has been drafted, the parties involved must sign it and go to a notary’s office to notarize it, the notary’s offices require, among other requirements, the following documents:
    • Original administration’s peace of mind in the event that the property is subject to the horizontal property regime.
    • Authentic copy of the receipt of payment of the property tax for the year in which the purchase and sale contract is to be notarized.
  4. Registration of the contract: Once the contract is signed, it is important to register it before the Public Registry Office corresponding to the place where the property is located. Registration of the contract is necessary for the sale to be enforceable against third parties and for the buyer to acquire full ownership of the property. It is the seller’s responsibility to carry out this procedure.