7/19/22, 6:04 PM
Medellin Real Estate — Points That Are Included In The Purchase Agreement | by Johnyspectre | Jul, 2022 | Medium
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Johnyspectre Jul 15 · 3 min read ·
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Medellin Real Estate — Points That Are Included In The Purchase Agreement
If
you are a foreigner and want to invest in Medellin real estate, whether small or large, it is very important to precede the entire process professionally. Whatever
your goals are, you should consider all aspects to invest safely and securely in Colombia. Once you finalize the type of real estate you want to invest in and also start the legal procedure of buying it, here comes the purchase agreement. Make sure to hire a professional and bilingual real estate agent and lawyer to make the buying process smooth and stress-free. Once you and the seller agree with the negotiation price, everything is legalized with a signed and notarized purchase agreement. It is documented in Spanish and called the ‘promesa de compraventa’. It is also common to make demands and negotiate offers that are done verbally until the actual purchase agreement is signed in the notary. A signed document means a deal is done, and nothing can be changed now. The time for closing a deal takes from 3 days to 3 months. It completely depends on the needs of the buyer and seller, legal procedure, mortgage, etc. Here are the points that are included in the purchase agreement.
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7/19/22, 6:04 PM
Medellin Real Estate — Points That Are Included In The Purchase Agreement | by Johnyspectre | Jul, 2022 | Medium
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Purchase Price Included
If you are purchasing an apartment, then anything that is not fixed to the property, the owner may remove them. These can be light bulbs, curtains, fans, appliances, etc. If you want to keep something as it is on the property, just get it in writing. Down Payment
Paying a down payment signifies the securing of the deal, and it generally exists between 10%-20%. But, if the property owner has a mortgage, there are chances that they may ask for a higher price to get the funds to cancel the mortgage. It is a good idea for a buyer to make a large down payment. But, you can negotiate a lower price for a down payment. For some foreigners, it is really a stressful situation because they give some money to the seller without getting anything in return, not even an escrow. Penalty Clause
Both buyer and seller enter the points in the agreement about the timelines and the amount of money they are promising. Once they sign the legal document, if you are unable to do anything as a buyer, you can lose your down payment. On the other hand, if you are unable to proceed as a seller you can be sued, and in some cases, even your property is forbidden for the agreed amount upon penalty. It is usually 10–20%. https://medium.com/@johnyspectre172/medellin-real-estate-points-that-are-included-in-the-purchase-agreement-8bc4b0b6f87a
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7/19/22, 6:04 PM
Medellin Real Estate — Points That Are Included In The Purchase Agreement | by Johnyspectre | Jul, 2022 | Medium
Commercial And Declared Values
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In Colombia, there is a difference between the prices that you pay and what is added on the title. You need to ask your real estate agent or lawyer about the right price for you. If you are making an investment in Medellin Colombia real estate for a visa or residency, things are different in every case.
Mortgage Settlement
In Colombia, the seller can’t transfer titles until the particular property is free of all mortgages, liens, and property taxes. Though it is a beneficial procedure for the buyer, it may take up to a month for the entire process of settling a mortgage, etc. Just note that an experienced lawyer always ensures that everything is done in as less time as possible. Proration Of Taxes
It is required to pay the property taxes for the whole year, and then they are divided to the date of title transfer or other situations, such as if the property owner gives the keys early, etc. The same applies to monthly HOA fees. Signing Titles
This purchase agreement will include the date time and location of signing it for all
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7/19/22, 6:04 PM
Medellin Real Estate — Points That Are Included In The Purchase Agreement | by Johnyspectre | Jul, 2022 | Medium
This purchase agreement will include the date, time, and location of signing it for all Get unlimited access involved parties. At this step, the purchase process finishes.
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Buying Medellin Colombia real estate can be quite easier and smoother with the help of a professional real estate agent and lawyer. So, hire the best and make the best investment in Medellin.
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