For many foreigners, buying property in Colombia feels like the perfect mix of investment opportunity and lifestyle upgrade. Whether it’s a vacation apartment in Cartagena, a finca outside Medellín, or an office space in Bogotá, the real estate market here is increasingly as attractive as it is diverse.

But the Colombian legal system has its own rules, and overlooking them can turn a dream investment into a costly legal battle. Here’s what every foreign buyer should know before signing on the dotted line.

---

Step 1: Verify the Property’s Legal Status

The first step is reviewing the “Certificado de Tradición y Libertad”, the official ownership and lien certificate. This document confirms:

• Who owns the property.
• If there are mortgages, embargoes, or liens.
• Any restrictions (heritage protections, usufruct rights, pending lawsuits).

💡 Pro tip: Never rely only on the seller’s word — request an up-to-date certificate directly from the Superintendencia de Notariado y Registro, available online here

---

Step 2: Conduct a Title Study

A title study (estudio de títulos) is a legal audit of the property’s ownership history, usually covering the last 20 years. The goal is to ensure:

• All past transfers were valid.
• There are no gaps or irregularities.
• No third parties (heirs, co-owners, spouses) could later claim rights.

Skipping this step, or thinking they can rely on Google Translate, is one of the most common mistakes foreigners make. There is a Colombian saying: “if you can afford scotch, you can afford ice”; the same principle applies here: if you’re purchasing a stunning hacienda, you should be able to afford our fees (no strings attached, but they’re public, available here)

---

Step 3: Understand Foreign Exchange Regulations

Foreigners must register their investment with the Colombian Central Bank (Banco de la República) through an official foreign exchange declaration. This guarantees:

• The right to repatriate profits (rental income, resale gains).
• Legal protection of the investment.
• Access to the banking system without restrictions.

⚠️ If you wire money without registering it properly, you could lose protections and face tax complications later. The Colombian seller is not likely to suffer any consequences, so in many cases, they may not be aware of this.

---

Step 4: Sign the Promise of Sale (Promesa de Compraventa)

Before the final deed, parties usually sign a promissory agreement, setting out:

• Price and payment method.
• Deadlines.
• Obligations of buyer and seller.
• Penalties for breach.

This contract should be drafted (or at least reviewed) by a Colombian attorney, as poorly written promises can create loopholes or disputes.

---

Step 5: Formalize the Purchase Before a Notary

The final transfer requires signing the public deed before a notary. Afterward, the buyer must:

• Pay notary and registration fees (usually 1.5–2% of the property value, depending on government fees).
• Register the deed with the Public Instruments Registry Office (Oficina de Registro de Instrumentos Públicos).
• Update the property tax records (Impuesto Predial).

Only after registration does the buyer officially become the property owner.

---

Risks to Watch Out For

While Colombia offers great opportunities, there are pitfalls:

• Hidden Liens or Debts – Even if not disclosed by the seller, unpaid taxes or mortgages can follow the property.
• Unregistered Improvements – A house or extension might exist without proper permits, exposing the buyer to demolition orders or fines.
• Inheritance Claims – Heirs may appear years later challenging the sale if succession processes were not properly completed.
• Non-Compliance with FX Registration – Can jeopardize the ability to repatriate your investment.
• HOA limits – If you’re purchasing an apartment, always request a copy of the HOA rules, as they might turn out to be stricter than what you anticipated (Check our our AirBnb Case Study for a more detailed example)

---

Final Thoughts

Buying property in Colombia as a foreigner is absolutely possible, and often rewarding, but it must be done with rigor. The key is due diligence: verifying ownership, auditing the title, registering your investment, and ensuring all contracts are airtight. Ultimately, these steps will determine if you and your dream home are meant to be.

At Colombia Legal Edge, we guide foreign investors step by step, reducing risks while protecting your capital and ensuring full compliance with Colombian law. We will only recommend trusted advisors and patiently go over any questions you have, as many times as necessary, at a reasonable price.