How Does the Real Estate Sector Works in Medellin, Colombia?

 Buying or renting a house in Medellin, Colombia, can be very difficult for an expat. The Colombia real estate sector has different rules and regulations than the USA and other countries. 

Additionally, many real estate agents can't speak much English. So, you must understand the real estate sector before you purchase houses for sale in Medellin, Colombia.

Here, we have listed some of the most important things you must know before buying properties in this Latin American city: 

 No multiple listing service in Colombia

   In Colombia, there is no MLS or multiple listing service. Hence, finding houses for sale in Medellin,     Colombia, can be difficult. A lack of MLS can also make it harder to find comps and learn about  market prices.

 However, many websites in Medellin can help you find a list of properties for sale in the city. This way, you can learn about market prices in different neighborhoods. This can prevent you from paying too much money to buy or rent. 

You need to obtain an NIT

To purchase property in Medellin, foreigners must first obtain a tax identification number, known as an NIT, from the Colombian tax authorities. This number is required to conduct any financial transactions in the country, including property purchases. 

Foreigners must also obtain a visa to stay in Colombia for more than 90 days, although this requirement may be waived for citizens of certain countries.

Escritura and its importance

This is one of the most important legal documents to purchase property in the country. The escritura or deed is a public document certifying the ownership transfer from the seller to the buyer. 

It is essential to ensure that the escritura is correctly registered with the Registro Nacional de Instrumentos Publicos, or National Registry of Public Instruments, to ensure that the property is recorded accurately as belonging to the buyer. 

Payment of taxes and fees

 

Another thing you must consider while purchasing houses for sale in Medellin, Colombia, is the payment of taxes and fees associated with the transaction. 

In the city, buyers are the people who are responsible for paying fees for notary, registration, and other costs associated with the purchase. 

Additionally, buyers need to pay yearly property taxes, known as predial. These taxes are based on the property's assessed value and can be paid quarterly or annually. 

Property websites are not updated regularly

One of the drawbacks of searching for houses for sale in Medellin, Colombia, online is that these websites are not updated on a regular basis. So, some properties may no longer be available for rent or sale.

 

This can frustrate foreigners looking to invest in real estate in Medellin, Colombia. So, working with a reliable and English-speaking real estate agent is very necessary for you. 

Not only will these agents keep you posted about the availability of the properties, but they will also ensure that you know all the rules and regulations before you purchase houses for sale in Colombia. 

Conclusion 

The city of Medellin is quite welcoming and has a magnificent health structure and life quality. However, as an expat, ensure you know enough about the city's real estate sector before you purchase any property for sale.