BUY/SELL CONTRACT

Paul Juan will inform the Buyer that the property can be legally recorded. If it cannot be recorded, we will clearly state the conditions or challenges to the title. For example, property in the Rosario Islands does not have clear title, but it is still desirable property. Many wealthy, and politically powerful people “own” property in the Rosario’s.

When both Buyer and Seller are in complete agreement, it is customary for both parties to sign a BUY/SELL CONTRACT in which the agreed Price, Terms and Conditions are clearly stated. Usually the two parties sign the BUY/SELL CONTRACT in front a Notary. A good faith deposit (down payment) of between 10-20% of the agreed upon price is presented to the Seller. With completion of the Buy/Sell Contract, it is normally considered by all parties, that the “the deal is made”.

The Contract gives the Seller time to bring the property up to the agreed condition, and to pay past due taxes, utility bills, etc. and, finally, to move out. The Buyer uses this time to arrange for funds to be available locally to complete the purchase. The BUY/SELL CONTRACT normally contains a Penalty Clause of 50% of the total Sale Price to be paid by either the Buyer or the Seller, whichever backs out of the Contract! At the agreed upon day and time, as stated in the Contract, both parties meet, normally at a Notary office, to begin the transfer of title to the Buyer and pay the money to the Seller. At this time, according to the terms of the CONTRACT, the Real Estate commission is also paid.

THE CLOSING

If everything is in order, the Closing can be completed in as little as 10-15 days.

However, sixty to ninety days is more common. Closing dates are made at the convenience of the Buyer, Seller, Attorney, or Notary, etc., who may be assisting with the Closing. Final payment, is usually made in the form of a Cashiers Check, wire transfer to the Sellers bank account, personal check, but not cash. If a personal check is used, it must first clear the local bank in Cartagena. Paul Juan Realty will accompany the Buyer, or with a Power of Attorney, go to the government Registry Office where the Title will be recorded.

Closing in Absentia (without the Buyer actually present at the closing) can be completed with a Power of Attorney Document which has been notarized by the Embassy or Consul of Colombia in a major city near yours. Search on Google to find the location. Paul Juan Realty is prepared to assist Sellers who cannot be present for the closing.

EXPENSES

Notary expenses are paid and shared equally by Buyer and Seller. Seller pays for, and presents to the Notary, the proper amount of Sales Tax. This information is recorded by the Notary, and within 48 hours the Notary will release the documents for Registration with the Government Registry Office. Along with the documents, a receipt showing that the Buyer has paid a Fee which is used to support Public Health, is presented to the Registry Office. In about one week the Registry Office will have recorded the documents, and at this time the Buyer can claim the documents showing that title has been legally transferred to the Buyer. The total amount the Buyer has to pay in taxes and title fee is about 2% of the agreed upon Sales Price.