What is Deed Registration and How is it Done in Colombia?
What is the deed process and how is it done in Colombia?
The deed process is a crucial step in buying or selling real estate in Colombia. It is the legal document that establishes who the true owner of a property is, along with their obligations and rights. It is essential for registering the property with the Property Registry and ensuring that the buyer has clear and legal ownership of the real estate.
What is required to process the deed?
To carry out the deed process for a property in Colombia, the following are needed:
- Public Deed: This is the main document, prepared by a notary, which contains all the buyer’s and seller’s details, the property’s value, the contract terms, and the payment method.
- Buyer and Seller Identification: Both parties’ national ID cards (cédula de ciudadanía) or passports are required.
- Background Certificate: This document is obtained from the Superintendence of Notaries and Registration of the Republic of Colombia and confirms that there are no legal impediments to the sale of the property.
- Payment of Taxes and Fees: Depending on the notary’s office, the cost can range from 6% to 12% of the property’s value.
What are the steps to process the deed?
The deed process is carried out in three main stages:
- Negotiation: The buyer and seller agree on the terms of the sale, including the price, payment method, and any additional conditions.
- Deed Preparation: The notary prepares the public deed with the agreed-upon data and terms, and both the buyer and seller sign the document in the notary’s presence.
- Deed Registration: Once signed, the deed is registered with the Property Registry. This registration is what gives the property its legal standing and allows for its transfer.
How much does the deed process cost?
The cost of the deed process varies depending on the notary’s office and the entity handling the transaction. Generally, it ranges from 6% to 12% of the property’s value. This amount includes notary fees, taxes, and charges. It is important to note that these costs can vary from city to city, so it is advisable to verify the exact amounts with the relevant notary’s office.
Why is the deed process important?
The deed process ensures that the buyer has legal and protected ownership of the property. Without a written and registered document, property ownership cannot be guaranteed, nor can a legal transfer be made. Additionally, the deed protects both the buyer and the seller in the event of potential future disputes. It is a key tool for avoiding conflicts, fraud, and misunderstandings in real estate transactions.
What documents should be ready before the deed process begins?
Before starting the process, it is essential to have the following documents on hand:
- Identification of the buyer and the seller.
- Real estate background check.
- Certificate of ownership or current title deed.
- Previous deed (if applicable), demonstrating the seller's current ownership.
- Documents verifying the signing capacity of both parties.
Is it possible to do the deed signing online?
Currently, the deed signing process requires the presence of the parties before a notary. Although some notary offices offer digital services to facilitate certain prior procedures, such as document verification or deed preparation, the public signing and final registration must be done in person at the notary's office.
What happens after signing the deed?
Once the public deed is signed, the property is registered with the Property Registry. This registry is what allows the new owner to exercise their legal rights over the property. The buyer can also request the certificate of ownership, which is the document that proves ownership.
Additionally, the buyer must ensure that their information is updated in the Property Registry so that the new owner's data is correctly recorded. This is essential for any future transactions or procedures related to the property.
Conclusion
Deed signing is a key process in the purchase of real estate in Colombia. It is fundamental to guarantee the legality of the property transfer and avoid future problems. If you are thinking about acquiring real estate, make sure you have the necessary documents and follow the proper steps to complete the deed signing.
Are you ready to start with your next purchase or sale? We accompany you at every step of the process so that you have a safe and hassle-free experience.