Real Estate Law in Colombia.

Frequently asked questions

What clients ask us most.

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• 01

  What does a title study include?

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  Analysis of ownership history for at least 20 years (10 in some cases), verification of liens, mortgages, attachments, easements, ownership limitations, pending lawsuits and regulatory compliance (land use, permits). An incomplete study can let through issues that surface after purchase — hidden defects are the most bitter disputes.
• 02

  What are the legal risks in a real estate purchase?

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  The most common: undeclared hidden defects, defective title (falsa tradición), attachments registered after the title study, the seller's unpaid tax obligations (which transfer to the buyer), land-use problems, and penalty clauses.
• 03

  Can a foreigner buy real estate in Colombia?

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  Yes. In general terms, foreigners may acquire real estate in Colombia under the same conditions as Colombian citizens, without needing Colombian residency or nationality. When the funds for the purchase come from abroad, it is advisable to channel the investment through the foreign-exchange market and register it with the Banco de la República as foreign direct investment. This registration facilitates the exercise of foreign-exchange rights, including repatriation of the invested capital and of the returns obtained in a future sale. Depending on the location and characteristics of the property, there may be restrictions or special authorizations set out in Colombian regulations. For this reason, before making the investment it is advisable to verify the property's legal, urban-planning and regulatory status.
• 04

  How do I know which licenses my real estate project needs?

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  Not all projects require the same permits. Depending on the location, the land use, the type of construction and the environmental characteristics of the property, urban-planning licenses, environmental permits, utility authorizations and other procedures before the competent authorities may be required. A prior legal and urban-planning review makes it possible to identify the applicable requirements, reduce regulatory risks and avoid delays, penalties or additional costs during the execution of the project.
• 05

  How do I know if I can develop a project on a lot?

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  Feasibility depends on the land use, the urban-planning treatments, the occupancy and construction indices, the environmental restrictions and the applicable urban-planning charges.
• 06

  How do I check whether a lot has development potential?

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  Before buying or investing, it is advisable to analyze the Land-Use Plan (POT), the applicable urban-planning rules, the affectations, easements, environmental restrictions and the associated urban-planning obligations.
• 07

  What urban-planning restrictions can affect my property?

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  Depending on the case, there may be restrictions due to environmental protection, public space, cultural heritage, setbacks, easements, water buffer zones or infrastructure projects.
• 08

  What happens if I build without a license?

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  Carrying out works without a license can lead to investigations for urban-planning infractions, the imposition of fines, suspension of activities, sealing of the works and, in some cases, demolition orders or restoration of the property to its prior state.
• 09

  What should I check before buying a property off-plan?

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  It is advisable to verify the builder's experience, the project's legal status, the current licenses, the trust (fiducia) conditions, the delivery timelines, the specifications offered and the guarantees provided for buyers.
• 10

  When is it advisable to use a trust (fiducia) in a real estate project?

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  The real estate trust allows projects to be structured in a safer and more organized way, centralizing investors' contributions, the administration of resources, contracting and the execution of the project. It also facilitates risk management, provides greater transparency to participants and is usually a customary requirement for financing and marketing real estate developments.
• 11

  Do I need a trust (fiducia) to develop a real estate project?

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  Not all projects require a trust, but it is usually advisable when several investors take part, funds are going to be received from buyers, or the aim is to facilitate the financing and administration of the project. The appropriate structure will depend on the size, complexity and business model of the real estate development.
• 12

  How is a real estate project legally structured through a trust (fiducia)?

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  The structure will depend on the characteristics of the business, but it normally involves transferring assets or rights to an autonomous estate (patrimonio autónomo), defining the administration rules, the participation of investors, the conditions for the use of the funds and the mechanisms for distributing profits. Proper structuring makes it possible to manage legal, financial and operational risks from the project's early stages.
• 13

  What should I check before investing in a real estate project managed by a trust (fiducia)?

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  It is important to verify who the trustee is, what the rules of the autonomous estate are, how the funds will be administered, what the conditions for the project's execution are and what rights each investor will have. Not all trusts offer the same level of protection nor serve the same objectives.