How to transfer a property in Nicaragua.

How to transfer a property in Nicaragua.

In Nicaragua, there are several ways in which real estate can be transferred to another person or company.

The various ways to transfer property are:

1. Purchase of property.

2. Donation of property.

3. Transfer by will.

4. Dation in payment.

5. Exchange.

6. By order of a judge.

1. Purchase of property.

This is one of the most common ways of transferring property in Nicaragua. The buyer, by previously carrying out Due Diligence, pays the seller's price for the real estate and proceeds to sign the purchase title, which must be duly registered at the mayor's office, cadastre office, and real estate registry office.

2. Donation of real estate.

The owner of a real estate (an individual or company) can donate his property to another person or company with no other requirements than signing the title of donation of the real estate. Whoever receives the donation must accept the donation of the real estate, the acceptance of the donation can be signed in the same act of the donation or in another separate document on another date.

Without the acceptance of the recipient, the donation title cannot be registered.

The donation of real estate can also be made by the central government or municipal mayors.

The donation titles issued by the central government and the municipal mayors are exempt from registration and transfer taxes.

3. Transfer by will.

Real estate can also be transferred by will. The beneficiary of the will can register the will in her favor until the testator has died.

Once the will is registered in the Registry Office, the real estate may be registered in the name of the beneficiary.

Registering the property in the name of the beneficiary through a will will follow the normal process of all real estate transfer titles.

4. Dation in payment.

Another way to transfer real estate is the dation in payment, that is, when a property is given to another person or company to pay off an outstanding debt. In this way of transferring property, it is important that the transfer title of the real estate details the debt and its cancellation with the granting and transfer of the property.

5. Exchange.

The exchange is nothing more than the exchange of one property for another. When two people or companies decide to exchange real estate for another, a title called exchange (Permuta) must be made. 

This title must be registered in the respective real estate office, national cadastre and Mayor's office.

6. By court order.

Another way to transfer real estate is through a court order. There are some circumstances by which a judge can order the transfer of a property to another person or company. Some of those circumstances may be:

a) For debts.

b) Forgery of titles.

c) When the co-owners want to separate the immovable property and it is not possible materially. The material indivisibility of the immovable property must be declared by the judge after the opinion of qualified experts appointed by the judge. 

The judge proceeds to order the sale of the real estate and distribute the money to the co-owners.

d) Due to an unfulfilled promise of sale. When a person promises to sell a property to another person and then backs down and does not want to sell. The judge can compel the owner to honor the promised sale.