LEGAL CHECK BEFORE BUYING PROPERTY IN NICARAGUA
In recent years, Nicaragua has become one of the most attractive destinations for foreigners looking to invest in real estate in tourist areas. Its unspoiled beaches, warm climate, friendly people, and low cost of living make the country a hidden gem in Central America. However, in order to ensure that your investment experience does not turn into a legal nightmare, it is essential to have the guidance of an attorney specialized in Real Estate Law who can conduct a full legal Due Diligence before closing any deal.
At CALA Lawyers, we have a team of attorneys with extensive experience in the real estate sector. We can state with confidence that the greatest risks for foreign buyers in Nicaragua arise from defective titles, properties in conflict, unclear boundaries, or sellers without legal authority to transfer ownership. Below is a basic Legal Checklist that should be part of any responsible property purchase in the country’s tourist zones:
✅ Legal Checklist
- Verification of the Property Title
- Review at the Public Registry where the property is recorded to confirm the existence and legality of the title.
- Confirm that the property is not part of national, communal, or affected lands.
- Verification of the Seller’s Legitimacy
- Confirm the seller’s identity and legal capacity to sell.
- Review the title history to ensure there are no heirs, spouses, or third parties with rights over the property.
- Chain of Title History
- Verify at least the last 50 years of ownership history to rule out potential lawsuits, liens, or unresolved legal issues.
- Municipal and Cadastral Review
- Confirm the property is correctly registered with the local municipality and has an up-to-date cadastral map.
- Verify that all municipal and real estate taxes (IBI) have been paid.
- Legal or Environmental Restrictions
- Determine whether the property is subject to restrictions by entities such as INETER, MARENA, or INTUR.
- Ensure the land is not within protected areas, untitled coastal zones, or conservation areas.
- Access and Easements
- Confirm the property has legal (not just physical) access via public roads or registered easements.
- Check for any easements for right of way, water, or electricity that may affect the property.
- Possession Status
- Assess the current physical occupancy of the property and speak with neighbors to detect possible illegal occupants.
- Construction Permits and Authorizations
- For raw land, confirm whether construction is legally permissible and check for urban or environmental restrictions.
A well-structured legal Due Diligence will help you avoid fraud, legal disputes, family conflicts, or significant financial losses. In many cases, foreign buyers are not familiar with Nicaragua’s legal system or with the informal practices that still persist in rural or tourist areas. A qualified real estate attorney will be your best ally in interpreting records, identifying red flags, and ensuring the transaction is carried out with full legal security and in compliance with the law.
At CALA Lawyers, we have extensive experience representing both national and foreign investors in the purchase of real estate in San Juan del Sur, Tola, Granada, León, Corn Island, and other tourist destinations throughout the country. Our legal team will guide you from the property inspection to the drafting of the purchase agreement and registration of the deed, ensuring your investment is 100% protected.
Looking to buy property in Nicaragua?
Contact us before you sign.
Your legal peace of mind is our priority.
Author: Luis M. Canales.
Director & CEO
CALA LAWYERS