If the sales contract for my real estate purchase in Nicaragua is in Spanish and English and if there is a difference in the two contracts, which one controls?
Tuey Murdock - Title Coordination Services (TCS)
The sales contract for your real estate purchase in Nicaragua may be in either Spanish or English or both. However, the official language in Nicaragua is Spanish, so therefore in case of a problem or conflict, the Spanish contract will control.
If your contract is written in English and a problem arises in the future, the English contract must be translated into Spanish for resolution by the courts.
I always suggest that...
The sales contract for your real estate purchase in Nicaragua may be in either Spanish or English or both. However, the official language in Nicaragua is Spanish, so therefore in case of a problem or conflict, the Spanish contract will control.
If your contract is written in English and a problem arises in the future, the English contract must be translated into Spanish for resolution by the courts.
I always suggest that before any sales contract is signed, you consult a Nicaraguan real estate attorney to review it and make a copy in Spanish, so there is no dispute over translation in the future.
Posted February 10, 2014
Lourdes Townshend
The importance of contracts.
I´m not an attorney, but by all means, any official contract must be signed in Spanish, as it is the official language in Nicaragua, or any other country in Latin América or Spain.
If you have official documents, as proof, or references for any transaction, they also must be properly translated by a certified official translator, and if you bring the translation from the United States, signed by...
The importance of contracts.
I´m not an attorney, but by all means, any official contract must be signed in Spanish, as it is the official language in Nicaragua, or any other country in Latin América or Spain.
If you have official documents, as proof, or references for any transaction, they also must be properly translated by a certified official translator, and if you bring the translation from the United States, signed by a Notary Public, the formality is that you pass the document through the county clerk for signature verification, and through the country consulate. Upon arrival to the country, you must present it to the proper Public Relations (Relaciones Públicas) Ministry, and then, if necessary, file it at the Public Registry (in cases of family affairs, like weddings, divorces, etc).
In the specific case of a real estate contract, the appropriate course of action would be to have the contract translated by the certified public translator, and then, take it to a fluent English / Spanish speaking attorney who specializes in real estate contracts. Some attorneys have their own translators. And, I would even get a second opinion as well, before signing anything.
Do not accept a translation from any real estate agent, or already made formats for that purpose.
Also, a good piece of advice is to get good information regarding the specific property, including the real market price, how noisy is the neighborhood, the crime rate, tax benefits, short or future plans for the benefits, and other requirements. Of course, find out about plumbing, electricity and other utilities. Where do they come from and how you will pay for them? Do you make payments to an established company / utility or direct to a developer? All those things are important to know to keep you from the situation of realizing the problem after you have made the purchase.
Posted February 11, 2014
David Smith - Farmland Assets
I work with Remax Colonial properties in Granada and we use an English- Spanish contract. As the other commentators mentioned, the Spanish version is the only recognized legal document in the country.
I work with Remax Colonial properties in Granada and we use an English- Spanish contract. As the other commentators mentioned, the Spanish version is the only recognized legal document in the country.
Posted February 14, 2014
Eduardo Cabrales
As the saying goes: the contract is only as good as the people who sign it. There are elements of trust involved. Whether in English or Spanish, they are both equally legal as long as they show the will of the parties. However to me, the importance of contracts is the answer to this question: what happens if someone breaches contract?
In that regard, you have to look into the enforceability of the document. As a fellow contributor said, English documents have one...
As the saying goes: the contract is only as good as the people who sign it. There are elements of trust involved. Whether in English or Spanish, they are both equally legal as long as they show the will of the parties. However to me, the importance of contracts is the answer to this question: what happens if someone breaches contract?
In that regard, you have to look into the enforceability of the document. As a fellow contributor said, English documents have one more step (translation) to enforce it, than those in Spanish. In Spanish, you can have private documents or Public Deeds signed before a Notary, with the latter the more easily enforceable, as notaries have Public Faith. And since we are talking Real Estate, if it affects Real Estate rights (promises of sale, leases, mortgages, etc.), you should be able to register a Public Document in the Public Records. This way it´s not only an obligation between the parties, but it is also of Public Knowledge, so no one can claim that they were not aware of your rights over certain Real Estate.
Public Deeds before a Notary and registration increase your expenses, but it also helps you sleep better at night - you´d pay more for a comfy bed than for sleeping on the floor!
Posted February 25, 2014
Eddy Marin-Ruiz - The Mortgage Store Nicaragua
In Nicaragua, in order for a contract to be enforceable, it should be in Spanish. At the Mortgage Store we translate every single one of our contracts for our clients who do not speak Spanish and always have an attorney from Nicaragua review it. There is no purchase contract per se because out here, it is called Promise to Sell. Both parties sign what is called a Promise to Sell and then that document is registered in the recorder’s office so it...
In Nicaragua, in order for a contract to be enforceable, it should be in Spanish. At the Mortgage Store we translate every single one of our contracts for our clients who do not speak Spanish and always have an attorney from Nicaragua review it. There is no purchase contract per se because out here, it is called Promise to Sell. Both parties sign what is called a Promise to Sell and then that document is registered in the recorder’s office so it becomes publicly noted. Once the terms are fulfilled, then the contract would become a sold receipt and that kind of closes the transaction.
The Mortgage Store uses a process that is the first of its kind; a trust or a company that is dedicated to handling trusts. All our transactions are handled through them. The reason why we use a trust versus a public recording process is because every time that you record a document, the taxes are charged on the face value of the document. For example, if it’s US $100,000 promise to sell, you pay 1.5%, or $1,500. When you register the property in your name, then the face value is again $100,000 so you will be taxed another $1,500, for a total of $3,000 on what is essentially one transaction. In contrast, if you use a trust, you only have to record the trust once and then we can fulfill the terms of our agreement with the client within the trust and it is not recorded over and over again. We find this to work for us and it definitely works for construction and build process.
(A banana farm outside the village of San Jose del Sur, Nicaragua, pictured.)
Posted July 27, 2015