The way of acquiring a property in Colombia generally begins with the signing of a promise of sale and sale that is then perfected with the respective contract of sale, where it generates for the seller the obligation to transmit the right of dominion. This contract must be submitted to Public Deed, before a Notary Public who will request that the following documents be attached:
- Authentic copy of the property tax for the year in which the deed is to be done, which must be duly paid.
- Paz y Salvo original de Valorización, issued by the Institute of Urban Development (IDU).
- Peace and safe original of administration in case the property is subject to horizontal property.
Once the Public Deed is obtained, it must be registered with the Public Instruments Registration Office, in order to register the sale and update the ownership of the property. The acquisition of the real estate, ends with the formal delivery of the same. The costs associated with the procedure depend on the value of the property to be acquired.
The following is the list of costs for a sale of real estate:
- Notary rights: The seller and the buyer pay in equal parts. Retention in the Source: It is in charge of the seller (1% of the value of property).
- Registration fee: The seller and the buyer pay in equal parts (1% of the value of the property).
- Certificates of tradition and valuation: It is the responsibility of the seller.
- Registration fee: To be paid by the buyer (0.5% of the value of the business).