Need Title Insurance for Colombia ?
Buying Title Insurance in Colombia is Uncommon.
One of the first steps of buying property in a foreign country is to set aside all of your notions of how this is done in your country. It does not matter how many properties that you have bought and sold, every country has its own processes and idiosyncracies. Colombia is no different. I would tell you that Title Insurance is not available in Colombia. Generally it is not sold here but if you want it you can purchase it from a company outside the country. Why is not available here ? This is simply because the process of buying and selling a home is different and the risk is greatly reduced. I know of no Colombian that has used it. What is the purpose of Title Insurance ? If we look at Realtor.com - http://www.realtor.com/home-finance/homebuyer-information/purpose-of-title-insurance.aspx?source=web , they state, '' Title insurance protects the title owner against any defects that prevent him from clearly owning the property. It also protects against any liens the former owner may have had against the real property in the form of unpaid mortgages, property taxes, and other unpaid debts, as well as title fraud, encroachment on the neighbor's property, and possible errors in public records.'' Let's examine the process of buying a property in Colombia. The first thing you have to do, as anywhere, is find that perfect property. Now, in North America, you would make a formal written offer and hand a deposit cheque to the realtor. In Colombia, you make a verbal offer, organize all of the details and then ask for the matricula/registration and/or the certificado de tradicion. Next you take the matricula or the certificado to your lawyer and they do the title study. Only once it is certain that the property is clear of any liens or debts is the promesa de compraventa (promise to buy/sell) signed. At this point you are certain the property title is clean and that the property can be sold. A deposit is then given to the seller because the promesa has clearly defined obligations for both buyer and seller with significant penalties for default. The last step involved is the signing of the escritura or the deed. This is done in a notaries office. Every notary's office has someone specialized in this task. All of the final details have been reviewed by your lawyer and the notary's office. The notary's office will not finalize the document until proof of payment of the full year's taxes and any administration fees owed to the condo association have been paid. If perchance any errors are made in the public record upon return of the documents, these should be caught by your lawyer and corrected with no extra cost. Insurance was created to reduce your risk of an event occurring. The process of buying a property in Colombia virtually reduces that risk to zero so why would you incur the cost of purchasing Title Insurance when all you need is a lawyer well versed in managing Colombian Real Estate ?