The term “real estate” includes the following:

• Land
• Any buildings or structures on it
• Movable property intended to permanently serve land

In Colombia, real estate transactions are governed primarily by the Civil Code.

Transactions that have commercial purposes are also governed by the Commercial Code.

There is a national title registration system that covers the entire Colombian territory. In this registration, ownership can be verified, as well as where public deeds regarding in rem rights, liens and attachments over the property are registered. This system is the only means to verify ownership and mortgages.

Title registration is managed by the Superintendence of Notaries and Registration, through public land registrars (“Land Registrars”) located throughout the country.

• Transfer of property (i.e., purchase, donation, expropriation)
• Leases by public deed
• Mortgages
• In rem rights (usufruct, easements)
• Liens and encumbrances

Land ownership may only be proven with the property land certificate issued by the respective Land Registrar.

The Land Registrar has an online system to search property land certificates over real estate properties registered in such offices. However, it is not possible to search for the public deeds online.

Yes. Foreigners can own real property in Colombia, except vacant lots located at a national border.

Yes. When there are reasons of public interest (for instance, road or power transmission construction), the government can expropriate real property through an administrative or judicial procedure. In all cases, the government must indemnify the owner of the property with the commercial price of the real property and additional compensation value.

Real estate is usually held by the following:

• Leasehold
• Freehold property
• Condominium
• Possession

• Corporations
• Co-ownership
• Limited partnership
• Trusts

These transactions are usually funded through loans granted by financial institutions, which are generally banks. The loans are commonly secured with mortgages over the property. Interest rates are fixed by the lenders and are generally low compared to other rates in the market.

Financial leasing and trusts are used as well.

Either party may prepare the initial draft of the promissory sales agreement and the draft of the sales agreement public deed. When financial institutions are involved in real estate transactions, they will normally produce the drafts of the contractual documentation. After the sales agreement public deed has been registered in the public registry office, such office will issue the property certificate.

Yes. An owner can inherit liability for matters relating to the real estate even if they occurred before the owner bought it. For instance, regarding condominium properties, the new and former owner will be jointly liable for administration expenses caused prior to the acquisition of the property.

Yes. The former owner is held liable before the new owner in guaranteeing (i) the right of ownership against third parties that may challenge the title for grounds that occurred before the transfer of the property; and (ii) the good physical conditions of the property (absence of hidden defects). Also, it usually is agreed that the former tenant is held liable before the landlord for the public utilities expenses that remain to be paid.