Real Estate Lawyer Services in Colombia

Real estate is one of the main assets that both an individual and a legal entity can have. That is why, depending on each country, there are clear regulations governing their construction, purchase and sale. **If you have doubts about** **how does real estate law work in Colombia?** **Visit** [ **Legal Service** ](https://serviciolegal.com.co/about-us/?lang=en)**we share with you the basics of what you should keep in mind.** ## What is real estate law? The construction of residential sites as well as commercial spaces requires specific laws. That is to say, **a framework of standards to identify when, how, where and by whom a project can begin construction.** This framework of laws is what we know as real estate law.  In Colombia, all matters pertaining to real estate law **is found in the civil code and specific laws that contribute to regulate certain aspects.** Two of the most important are Law 675 of 2001, which regulates the horizontal property regime, and Law 820 of 2003, which establishes all the legal provisions for the leasing of real estate. ## Entities and procedures depend on your needs. **To answer** **How does real estate law work in Colombia?** **it is key to take into account your requirements.** That is, the function that you are going to perform and that must be in accordance with the regulatory frameworks of the country. There are a wide variety of actions that can be taken by individuals and legal entities in relation to real estate, but **For practical purposes, we will outline three key areas: construction, real estate registration and purchase and sale.** ### Construction  In Colombian [ Colombian real estate law ](https://serviciolegal.com.co/real-estate-law/?lang=en) the regulations and steps to follow for the construction are very important. Being aware of each one of them is essential to avoid delays in the works. In the first instance it will be necessary to have all the soil studies, type of construction, purpose of the construction and if the surrounding environment is adequate. **As for the formalities, licenses and certifications are the most important and the corresponding authorities to which to turn to are the municipal mayor’s office and the urban curator’s office.** ### Real estate registration If you are wondering how does real estate law work in Colombia? From the documents that prove who is the owner of a property, **The key here is the deed formalities. In addition, the entities to which to refer during the processes will be the notary’s offices and the offices of registration of public instruments.** In addition, there are other different scenarios, such as, for example, having the services of [ lawyers specialized in horizontal property ](https://serviciolegal.com.co/horizontal-property/?lang=en) will be relevant if you want to register your apartment in a gated residential unit. ### Purchase and sale of real estate The purchase and sale of real estate may be carried out regardless of whether the commercial relationship is between individuals or legal entities. Likewise, since there are different ways to pay for the properties, depending on your needs, the procedures and entities may vary.  Thus, in order to respond how does real estate law work in Colombia? from this perspective **important for the process are the previous appraisal, the promise of sale, the deed of title and the mortgage instruments for the payments.** Finally, as for the entities, **banks, cooperatives, real estate agencies and again, notaries and public instrument registration offices will be key in the processes.** ## Legal service, lawyers at your service It is possible to be overwhelmed by the regulations and the steps that must be taken to comply with them. However, **all these processes can be accompanied by** **real estate lawyers** **.** At Servicio Legal, with expert professionals to accompany you in every phase of the process you are carrying out; even if it involves criminal aspects. **If you require our services or have further questions about** **how does real estate law work in Colombia?** **do not hesitate to contact us.** [ I want legal advice ](https://api.whatsapp.com/send/?phone=%2B573003884986&text&type=phone%5Fnumber&app%5Fabsent=0)

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. ### Cybergraphy <https://www.gerencie.com/contrato-de-compraventa-de-inmueble.html> <https://actualicese.com/contrato-de-compraventa-de-inmueble-3-aspectos-que-debe-tener-en-cuenta/> <https://www.colombialegalcorp.com/blog/compraventa-bienes-inmuebles/>

### Title Study in Colombia The title search is an essential process that must be done prior to the purchase of real estate. It is mainly regulated by Law 675 of 2001, also known as the Horizontal Property Law, but there are also other rules and decrees that regulate it. It consists of reviewing the legal documentation and records of the property to ensure that the person selling it is the legitimate owner of the property and that there are no liens, encumbrances, debts or legal limitations on the property that could affect its value or use. It has a cost of approximately 0.12% of the commercial value of the property. This study should be performed by an [attorney specializing in real estate law](https://serviciolegal.com.co/urban-and-real-estate-law/?lang=en) and should include a review of the following documents as a minimum: * Public deed of sale: proves the transfer of ownership of the property from the seller to the buyer. * Certificate of freedom and tradition: it is issued by the Public Registry Office and contains information about the history of the property, including any limitation or encumbrance that may affect its value or use, such as a mortgage. * Tax clearance certificate: proof that the seller has paid all taxes related to the property up to the date of the sale. * Certificate of good standing of administration: proof that the seller has paid all the administration fees due, applies only when the property is located in a complex or building. In addition to these documents, other documents such as blueprints, construction licenses and permits, and lease agreements in case the property is leased may also be reviewed. This process is carried out in the following stages: 1. Documentation review: this is the initial stage in which all documents related to the property are reviewed in detail. 1. Verification of ownership: once the documents are reviewed, it is verified that the seller is indeed the owner of the property and that the property is free of any limitations that may affect its ownership or use. 1. Analysis of encumbrances and debts: we check if there are any encumbrances or debts on the property such as mortgages, liens or any other type of encumbrance affecting the property. 1. Verification of permits and licenses: it is verified that the property has the necessary permits and licenses for its use, such as construction permits and commercial activity licenses. 1. Review of urban planning restrictions: the property is analyzed with respect to the urban planning regulations applicable to it, such as construction restrictions, zoning, permitted uses, among others. Once the title search is completed, the specialist issues a detailed report indicating whether or not the property is free of liens or legal problems and whether or not it is safe to purchase. In case it is determined that the purchase of the property is not safe, legal actions or negotiations with the seller may be carried out to resolve them before the purchase of the property is executed. A title search is essential to avoid fraud and scams, so it is essential to do it before buying real estate. This ensures that the property is in good commercial condition and that your purchase is safe and will not generate legal problems later. During 2020, 212,656 public deeds of sale of real estate were filed, which represented a decrease of 17.4% compared to 2019, when 257,606 were filed. This decrease was due to the crisis caused by Covid-19. In the first 9 months of 2021, 168,722 public deeds of purchase of real estate were filed, this represented an increase of 30.7% over the same period of 2020. Additionally, in Colombia in 2020, 7,899 investments by foreigners were registered, of which 22.5% corresponded to the real estate sector, reaching an invested value of US$539 million. #### **References:** * _Law 675 of 2001 – Horizontal Property Law._ (2001, August 4\. Senate Secretariat. <http://www.secretariasenado.gov.co/senado/basedoc/ley%5F0675%5F2001.html> * _What is a title study?_ (2022, January 6). Square meter. <https://www.metrocuadrado.com/noticias/guia-de-compra-y-venta/que-es-un-estudio-de-titulos-3928/> * Sotelo, J. G. S. (2022, 26 January). _What is a title study?_ <https://blog.properati.com.co/que-es-un-estudio-de-titulos-en-colombia/#:~:text=Un%20estudio%20de%20t%C3%ADtulos%20es,documento%20para%20continuar%20el%20proceso> * _Study of titles: requirements, responsible parties and importance._ (n, f.). Fincaraíz. <https://fincaraiz.com.co/blog/consejos-de-vivienda/estudio-de-titulos-requisitos-responsables-e-importancia/>

In the first place, it is important to make a distinction between marital and patrimonial partnership, since the former arises automatically with the celebration of the marriage, while the latter applies only to de facto marital unions and does not arise only with the formation of the same, if the permanence of the partners is not required to be greater than two years and that they have no legal impediment to marry or, if they have, they have dissolved the marital partnership that they had previously constituted. Additionally, there is an important difference between liquidation and dissolution. In the conjugal partnership there is no term to liquidate, in the patrimonial partnership there is, because when this is dissolved for any of the reasons, the permanent partners have one year to liquidate and in case of not doing so, the assets remain in the name of their owner. ## Now, in the case of the conjugal partnership, article 1781 of the civil code states that the following are part of the partnership 1. Fruits, pensions, interest and profits, whether they come from corporate or personal assets. 2. Monies contributed to the marriage or acquired by one of the spouses at the expense of the partnership must be returned. 3. The real estate or fungible things that are contributed or acquired. 4. Assets acquired for valuable consideration. 5. Own real estate assets that are contributed with a charge to be returned to restitution to the company in cash. ## Also, the rule indicates which are the excluded assets 1. Inheritances and donations. 2. Property that was duly subrogated to another property belonging to one of the spouses. 3. The things purchased with own values of one of the spouses, established in the capitulations. 4. All material increases that accrue to any species of one of the spouses, forming the same body with her, by alluvium, building, planting or any cause. 5. The species that one of the spouses possessed in title of lord of it, even if the prescription or transaction with which he/she has made them truly his/hers is completed or verified during it. 6. Interest accrued by one of the spouses before the marriage and paid thereafter. 7. Assets previously held under a title of title vicious but whose vice has been purged during the conjugal partnership by ratification or other legal remedy. 8. Assets that revert to one of the spouses due to the nullity or termination of a contract or the revocation of a donation. 9. The right of usufruct that is consolidated with the property belonging to the same spouse, the fruits will only belong to the partnership. 10. What is paid to either spouse for credit capital constituted before marriage, shall belong to the creditor spouse. 11. Litigated property and that during the partnership one of the spouses has acquired peaceful possession. ## As a result, the marital partnership is liquidated as follows 1. **Conforming the gross marital assets**. That is to say, to add the social assets, the compensations (in favor) that are owed to the conjugal society at the expense of the spouses. 2. **Conforming marital liabilities**. For this purpose, the external liabilities (debts owed to third parties at the time of dissolution) are added to the internal liabilities (offsets against the marital partnership). 3. **Gross marital asset write-offs.** liquid marital assets. (subtract marital liabilities from gross marital assets) 4. **Dividing marital assets** **liquid** **between the spouses.** 5. **Equity adjustments in the account of each of the spouses**. (community property plus compensation owed to the partnership) minus compensation owed to the partnership 6. **Determination of the manner in which the external liabilities are to be paid.** 7. **Conformation of the branches.** Determination of the assets to be given to each spouse. Finally, the cost of the liquidation of the marital or patrimonial partnership will have a cost according to the value of the partnership to be liquidated, plus the cost of the attorney’s fees. On the other hand, if the liquidation is litigated, the costs will be, mainly, the fees agreed with the lawyer who will handle the process before the Family Judge. ### Cybergraphy <https://www.asuntoslegales.com.co/consumidor/que-bienes-entran-y-que-bienes-no-en-la-liquidacion-de-la-sociedad-conyugal-3371715> <https://blog.legis.com.co/juridico/union-marital-de-hecho-sociedad-patrimonial> <https://colombiadiversa.org/derechos/tiene-algun-valor-economico-la-liquidacion-de-sociedad-conyugal-o-patrimonial/>