What is Deed Registration and How Is It Performed in Colombia?
Deeding: What Is It and How Is It Done?
When you buy or sell real estate in Colombia, one of the most important steps is deeding (escrituración). It is the legal process that formalizes the transaction and ensures that the change of ownership is valid, secure, and recognized by law. Although many people think that signing a contract or making a verbal agreement is enough, in reality, the public deed is the official document that gives legitimacy to the operation.
What is deeding?
Deeding is the process by which a public deed is drafted and signed. This is a legal document that officially records the purchase, sale, or any other legal act related to real estate. This document is prepared by a notary and is supervised by the Superintendence of Notaries and Registration.
This step is not optional: without a deed, the property cannot be legally transferred. It serves as a guarantee for the buyer and a way to protect the seller's rights. Additionally, the deed is what allows the new owner to register the property with the Property Registry, which is essential for future operations such as mortgages, leases, or sales.
How is it done?
The deeding process is not a single step. It is generally divided into four key stages:
- Filing: The request is submitted to the notary, all necessary documents are collected, and the procedure begins.
- Drafting/Preparation: The property information is verified and the seller's documents are reviewed, such as the title deed, property appraisal, and tax records.
- Execution: In this stage, the notary drafts the public deed and the corresponding signatures are made. Both parties must be present.
- Authorization: Once the deed is signed, it is sent to the Property Registry for official registration. This step is fundamental for the new owner to be legally recognized.
What documents are needed?
To begin the deeding process, several documents are required, including:
- Property title deed (original or legalized copy)
- National ID card (Cédula de ciudadanía) of the seller and the buyer
- Birth certificate of the seller (in some cases)
- Property background check certificate (if applicable)
- Property appraisal (if the process involves financing)
- Copy of the previous deed (if the property has been sold before)
- Tax documents of the seller (in case of taxes)
It is important to have everything ready before going to the notary. Otherwise, the process may be delayed or even halted if documents are missing.
How much does deeding cost?
The cost of deeding can vary depending on the value of the property and the type of procedure. A fixed price cannot be given, as charges are based on a percentage of the deed, and the following must also be taken into account:
- Notary fees
- Deed tax (if applicable)
- Appraisal fees
- Administrative expenses from the notary
While exact figures may not be available, buyers are advised to budget for these expenses. Being well-informed is the best way to avoid unpleasant surprises at the end of the process.
Why It's Important to Get It Right
Many people assume that if a deed is drawn up by a notary, everything is in order. However, deed preparation also entails a number of legal responsibilities. For instance, you must comply with the conditions outlined in the deed, such as paying the remaining balance, registering the property, or fulfilling any agreed-upon clauses.
Furthermore, if any step is done incorrectly or overlooked, the property may remain in a legally precarious state. This can lead to future complications, such as ownership disputes, litigation, or difficulties in selling or leasing the property.
What to Do After the Deed Is Finalized
Once the deed has been signed and the property registered, the new owner holds full legal rights to the property. These include:
- The right to sell or lease it
- The ability to carry out improvements or renovations
- Protection against any legal action or claims from third parties
It is also advisable to keep a copy of the deed and the property registration record in a secure place for future reference.
Are you looking to buy a property in Colombia and need guidance on the deed preparation process? At D.C Colombia, we guide you through the buying or leasing process and assist you with the legal management you need. Contact us to ensure everything is in order and to start your new home or investment with peace of mind!