Does Nicaragua believe in property rights and the rule of law, or is Nicaragua more corrupt?

Property rights in Nicaragua are excellent and guaranteed by the constitution. The recently passed Coastal Law further defined the property along the coast and set regulations for its use. A recent World Bank report listed Nicaragua as the country that best protects investor rights in the region.

Property rights in Nicaragua are excellent and guaranteed by the constitution. The recently passed Coastal Law further defined the property along the coast and set regulations for its use. A recent World Bank report listed Nicaragua as the country that best protects investor rights in the region.

To further illustrate how important this is and how it is being used at the highest level, the disputes...

To further illustrate how important this is and how it is being used at the highest level, the disputes that arose as a result of the confiscation of land during the revolution and its return and in which the US many times is involved (on behalf of Nicaraguans who became US citizens), have been agreed to be resolved by arbitration at the Chamber of Commerce.

There is definitely the rule of law and property rights in Nicaragua.

 

The best advice that someone can receive when purchasing property, either as a land owner or a potential investor is, “Do your due diligence and always seek legal assistance from a firm that has experience.”  Most of the time when you hear about conflicts it is because the due diligence process was not done correctly and the property’s history was not verified...

There is definitely the rule of law and property rights in Nicaragua.

 

The best advice that someone can receive when purchasing property, either as a land owner or a potential investor is, “Do your due diligence and always seek legal assistance from a firm that has experience.”  Most of the time when you hear about conflicts it is because the due diligence process was not done correctly and the property’s history was not verified appropriately or the documents were not certified appropriately. If you do these things right, there will be no problem in buying or selling property in Nicaragua.

 

If you enter into a contract with someone, that contract will be followed and there is no reason to think that there is going to be a difference if you are a foreigner. The law recognizes everyone’s rights as the same. We also have mediation and arbitration centers, which are provided by private associations.  These centers provide an alternative route to resolving any dispute that may arise between private parties instead of the parties going to court. That is not necessarily because the court will be less fair but rather because the court has more procedures so in a court the case can take longer whereas the mediation and arbitration centers provide an alternative so the procedure will be quicker and it is more time efficient in handling disputes.

 

What is commonly done here in Nicaragua is you would include a clause in contracts that indicates that in the event of a conflict, the parties agree to go to a mediation and arbitration center and resolve the dispute there. Having this clause is a good practice but I believe that if you do not include such a clause in a contract it does not mean that you cannot go to a mediation and arbitration center if a dispute does happen to arise later.