There is a permit process that a potential buyer in Nicaragua would need to adhere to but a lot of the developers also have CC & R type of conditions and restrictions as we see in the US that requires a homeowner to build to specific standards.
The type of construction here in Nicaragua is masonry. Right now, we aren’t using stucco and lumber, like we would see in housing projects in the US.
There is a process for permits for structural, electrical, plumbing, HVAC and specialized engineering as well. Here in Nicaragua, the homeowners or the developers are more engaged in the construction process. The standards are set but the government does not as closely monitor them as they would be in the US. As far as the Mortgage Store and the loans we do for construction, we assign specific engineers to manage the project and I would recommend an individual person that does make sure that the construction is being built in accordance with the plans. If you are getting a home loan, we would want to make sure that the collateral on your house is good, so we have an interest in making sure that your home is built correctly.
There is no formal contractor licensing requirement in the country of Nicaragua, so the builder (or the owner) does not have an easy, formalized financial or legal recourse. There is no construction defect lawsuit or if the contractor just disappears with the money. So I would definitely advise everyone building a home in Nicaragua that they be engaged in the construction process and not as hands off as you would if you were in the US.
(Playa Pacifica, Nicaragua, development, pictured.)