What should I know before buying a home in a new housing development in Nicaragua?

Buying a house or other real estate in Nicaragua is basically the same as in other countries. The first thing I would recommend is to look at the track record of the developer and see what other developments he’s done, how they’ve turned out, and if there has been any trouble for prior developments. Secondly, if it’s something that you like and end up buying, just make sure that you have all the details and the specifics of the houses or apartments that...

Buying a house or other real estate in Nicaragua is basically the same as in other countries. The first thing I would recommend is to look at the track record of the developer and see what other developments he’s done, how they’ve turned out, and if there has been any trouble for prior developments. Secondly, if it’s something that you like and end up buying, just make sure that you have all the details and the specifics of the houses or apartments that you’re thinking of buying for your own security, in case any discrepancies between what the developer was offering as a product and what you seek in the end. If your agreement is in writing, then there shouldn’t be much discussion.

When you buy a house or an apartment in Nicaragua, you will usually finance it through a local bank. The local bank will take care of the legal paperwork, which adds another layer of protection because the bank will make sure that there is legal title to the property.

You also have to make sure that there’s no issue with the water supply. Many homes in Nicaragua do have an underground or a tower for the tank of water. Just find out what kind of situations happen in the area where you’re buying a house. Check if there’s any kind of water shortages or just find out what the conditions are so you won’t have any surprises once you’re living there. 

 

(San Juan River in southern Nicaragua, pictured.)
 

Before buying a home in a new housing development in Nicaragua, you need to know if a local bank will finance it. If a local bank will finance it, go ahead and buy the home. Banks have many strict compliance guidelines. If you do not comply with these, they will not finance you. When the local banks finance you, then you have legal clarity, background on the developer and the assurance that the house you bought would still be there in the next 20 years because you have an...

Before buying a home in a new housing development in Nicaragua, you need to know if a local bank will finance it. If a local bank will finance it, go ahead and buy the home. Banks have many strict compliance guidelines. If you do not comply with these, they will not finance you. When the local banks finance you, then you have legal clarity, background on the developer and the assurance that the house you bought would still be there in the next 20 years because you have an obligation to the bank during that time. Nobody will take that house from you, unless you do not pay the mortgage.

Whatever you buy, you have to go to a local bank and have them finance it. That’s what we recommend also. Get financed by a local bank because a local bank will make certain that everything is properly done.

Before buying a home in a new housing development in Nicaragua, you should also visit as many times as you want. Go out and see the houses and ask who the developers are and check their previous experiences. Go into the development and ask neighbors and those who have already owned the houses about the neighborhood and if there is water all the time, etc. There are many possible issues but you do have to remember that this is a handmade house and there could be inconsistencies. If the company is responsible, they will take care of the details fast and quickly so they can have a happy customer living inside. 

 

(Las Isletas (The Islands) in Nicaragua available for home building, pictured.)

If you are buying a home in a new housing development in Nicaragua, you should definitely do your research on the builder and the developer. You should also know the plan for the development and the infrastructure for growth. Check to see if the developer in his plan has proper water, electricity, and sewage, especially if you are buying in the first phases of the development.

 

I would also verify or have a meeting with the builder or the...

If you are buying a home in a new housing development in Nicaragua, you should definitely do your research on the builder and the developer. You should also know the plan for the development and the infrastructure for growth. Check to see if the developer in his plan has proper water, electricity, and sewage, especially if you are buying in the first phases of the development.

 

I would also verify or have a meeting with the builder or the actual contractor. I would personally have my attorney draft an indemnification contract that the property will be built to standards and that they will be subject to liability in the future if there is a construction defect. Just like in the US, the contractor has a responsibility for his work depending on the state. For California, it’s one year for certain things and up to 10 years for major construction defects. I would incorporate those types of terms into the agreement that I would sign with the contractor who will build the home. If possible, I would have a sit down talk with the architect and the engineer.

 

Every contract that we use here in Nicaragua, I got it from the US and modified it to fit Nicaragua. I then had it translated and had my attorneys look at it again and make any revisions. If you are buying anything in Nicaragua that is real estate related, the contract has to be in Spanish to be legally enforceable.

 

(Pictured: plan for Gran Pacifica, on the Pacific coast in Nicaragua.)

Before buying a home in a new housing development in Nicaragua, you need to know how many housing developments the company has built as well as the reputation and history of the company. You must pay attention to where they are building, the surroundings, the provision of utilities and facilities in place. 

 

You must look into the progress of the project and look at how they developed per section. A good indication that the company knows what they're...

Before buying a home in a new housing development in Nicaragua, you need to know how many housing developments the company has built as well as the reputation and history of the company. You must pay attention to where they are building, the surroundings, the provision of utilities and facilities in place. 

 

You must look into the progress of the project and look at how they developed per section. A good indication that the company knows what they're doing is that they do not go crazy in every section of the development. If the company tries to build a lot at the same time and in all sections of the development, then it will cost them more for electricity and water. Constructing block-by-block in a deliberate fashion guarantees that the neighborhood will be completed before moving on to the next phase.

 

There have been projects in Nicaragua where the developer has not delivered on what they said they would deliver. I had an experience with such a developer wherein I was trying to buy a house and the employees of the developer were not doing their jobs because the company was having some management issues. People who bought houses from them complained about the quality of the houses. 

 

When I bought a property in the past, I just bought it directly when I looked at the company's model houses. I didn't spend time to check out the company or pay attention to its reputation. I heard about the problems after I bought the house and was inspecting what was supposed to be a finished house.

 

You must do your own research and talk to the neighbors to understand what's going on. People should be picky about buying houses from a project or housing development and want to see the place first before they actually buy it.  

 

(Kitchen in a development, outside of Granada, Nicaragua, pictured. )