Buying Real Estate in Colombia: What You Need to Know

You’ve found the perfect property, signed the sale contract, and are ready to move in or start building your dream home. But imagine the sinking feeling of discovering hidden issues—structural damage, land disputes, or even legal entanglements. Yes, it can get worse.

In Colombia, due diligence is essential. A property title may have multiple owners, outstanding government loans, or even a history of illicit activity. If you don’t verify the details, the consequences fall on you.

Let’s break down the key steps to safely buying real estate in Colombia and ensuring a secure investment.

The following information for Buying Real Estate in Colombia was written by Cristian Daza – Attorney-at-Law, Manizales, Caldas and edited by Erin Donaldson, Editor of Coffee Axis Travel.

Real Estate in Colombia: Step #1 – Title Study

Before purchasing property in Colombia, conducting a thorough title study is essential. The first and most critical step is verifying that the seller is the actual legal owner. You’ll also want to uncover the property’s history and ensure it hasn’t been subject to government seizure or legal disputes.

While this may sound straightforward, it’s a key safeguard in protecting your investment. Knowledge is power—and obtaining a Certificado de Libertad y Tradición (Certificate of Freedom and Tradition) with expert legal interpretation will put you 60% ahead in securing a safe purchase.

However, in some cases, this certificate alone isn’t enough. Depending on the property, additional checks may be required:

• POT (Plan de Ordenamiento Territorial): This urban planning document dictates land use—whether for construction, agriculture, or commercial activities.
• Environmental & Legal Restrictions: Some land may be environmentally protected, part of indigenous territories, or include government easements due to mineral deposits or strategic resources.

This information isn’t meant to discourage you from buying property in Colombia—it’s meant to ensure your investment is secure. Working with a qualified real estate attorney with experience in Colombian property law is the best way to turn your dream into a reality, not a legal nightmare.

Title & Possession: Understanding Property Ownership in Colombia

In Colombia, property ownership consists of two key steps:

1. Title (Real Estate Deed) – The official legal document proving ownership.
2. Possession (Delivery) – The physical transfer of the property.

You aren’t the full legal owner until both steps are completed.

The Ideal Purchase Process

Under normal circumstances, when buying real estate in Colombia:
✅ You pay for the property and sign the deed at the notary.
✅ The purchase is registered immediately.
✅ You receive the keys and take possession on the same day.

This is the best-case scenario for buyers. However, reality doesn’t always unfold so smoothly.

Common Challenges & Solutions

Delays in possession can occur due to:

• Prior tenants still occupying the property.
• The seller needing extra time to vacate.

To protect your rights:
🔹 If a tenant remains, ensure you legally assume the existing rental contract with clear terms on their departure.
🔹 If the seller stays temporarily, formalize a short-term lease agreement—this prevents legal complications when reclaiming possession.
🚨 Warning: Allowing someone to stay in your property without a lease contract makes eviction much harder under Colombian law.

Ensuring a smooth transition requires careful legal planning—work with a real estate attorney to safeguard your investment and avoid unnecessary risks.

Tip #1: Don´t let people live in your property without a rental contract. If something happens in the future, this contract is what guarantees you will have possession as fast as possible.

When buying property in Colombia, flexibility can be key. If you’re getting a bargain price, securing a 30% discount off the market value, or dealing with a property that has an attached clause, there are ways to ensure a safe and legal transfer—even if immediate possession isn’t possible.

However, real estate has many complexities beyond just price. Before making an emotion-driven decision, seek professional legal guidance to protect your investment and avoid potential pitfalls

Purchase Contract vs. Promise to Purchase Contract

To ensure a smooth real estate transaction in Colombia, it’s crucial to have a qualified lawyer review every aspect of the process. One of the most effective ways to secure your investment is by signing a Promise to Purchase Contract (Promesa de Compraventa) before finalizing the sale. This legal document clearly defines the terms, conditions, and responsibilities of both parties.

Key Elements to Consider:

• Price & Property Details – Ensure the contract includes the exact price, property location, boundaries, size, and address.
• Legal Protections – A “saneamiento por evicción” clause ensures that the seller guarantees the property is free of legal claims and will handle any future eviction issues.
• Payment Terms – Payment deadlines must be clearly defined, with penalties if the seller fails to meet agreed terms. Consider involving a bank as an intermediary to avoid disputes.

Important Tip:

When signing the final deed (escritura pública), be cautious of phrases like “compra como cuerpo cierto” or “da por recibida la propiedad.” These terms imply that you accept the property as is, which could lead to issues later. To protect yourself, only finalize the purchase after all agreed-upon conditions have been met, or ensure the deed states “pending ‘X’ condition.”

Legalizing Your Purchase Funds in Colombia

When buying property in Colombia as a foreign investor, managing your funds properly is essential—especially if you don’t have a local bank account.

One of the most efficient and secure ways to transfer money is through a fiduciary service like Alianza Valores. This method simplifies the process and ensures compliance with Colombian financial regulations.

How It Works:

1. Sign a Promise to Purchase Contract (Promesa de Compraventa) – This serves as proof of the transaction.
2. Send Funds to the Fiduciary – The fiduciary will receive your money and handle the transfer to the seller’s bank account.
3. Regulatory Compliance – This process aligns with Colombia’s financial oversight laws, helping to prevent money laundering risks while ensuring a smooth and legal transaction.

By using a fiduciary service, you protect your investment, reduce risks, and streamline the real estate purchase process in Colombia.

Registering Your Property & Notary Documentation

Once both parties agree on the price and payment terms, they will meet at the notary to sign the deed (Escritura Pública). After signing, the property registration process takes approximately 3 to 15 weeks to finalize. At the end of this process, you will receive the Certificate of Freedom and Tradition (Certificado de Libertad y Tradición), officially confirming your ownership.

Why Legal Assistance is Crucial

Navigating the legal Spanish used in real estate contracts can be challenging—especially when negotiating terms. Unless both buyer and seller speak the same language, this requires a high level of bilingual fluency to avoid misunderstandings.

A qualified real estate lawyer should:
✔ Review the deed to confirm that all terms are correct.
✔ Verify the seller’s statements and ensure no hidden liabilities.
✔ Oversee the notary process to prevent costly errors.

One small mistake in the deed can lead to delays and unexpected expenses. Having a lawyer present ensures that you are purchasing exactly what you agreed to—without future complications.

Law 1943 of 2018 – Declaring the True Property Value

⚠ BEWARE: Law 1943 of 2018 modified Colombia’s tax code, making it mandatory to declare the actual purchase price when buying real estate.

One of the main enforcement measures is through the Notary Office, where the notary must certify under oath that the declared purchase price matches the real transaction amount.

Attempting to underreport the property’s value to reduce taxes—a practice some buyers and sellers used in the past—is now a criminal offense and can result in legal consequences.

Why You Must Follow This Law

✅ Avoid Legal Trouble – Misrepresenting the price can lead to judicial action and hefty penalties.
✅ Protect Your Investment – If the tax authority discovers inconsistencies, you may face retroactive tax charges and fines.
✅ Ensure a Smooth Resale – If your declared value is lower than the real market value, you could face complications when selling the property later.

💡 Bottom line: Do NOT allow a seller to pressure you into declaring a lower value. What seems like a tax-saving shortcut today could cost you much more in the future.

Editor’s Note: Beware of Online Misinformation

In 2019, a wave of misinformation and online trolling hit many expat communities on Facebook. Individuals who barely spend time in Colombia have set themselves up as so-called “experts,” often spreading misleading or outdated advice.

To combat this, Coffee Axis Travel is partnering with trusted, on-the-ground professionals to deliver accurate, firsthand insights. Our mission is to provide reliable, face-to-face solutions that help you build a seamless and fulfilling life abroad.

💡 Don’t rely on armchair experts—trust those who truly know Colombia.

VIP Expat Lifestyle Consulting

Come to us for your Real Estate in Colombia needs and we will set you up with our local consultant. For a fee, we will provide private transportation and expert advice with scheduled viewings. We will take you to the properties that fit your vision, and help you fast-track the process of finding your perfect solution. Email for more information: coffeeaxistravel@gmail.com

Written by Cristian Daza

Attorney at Law | Manizales, Colombia

Crisitian Daza is an established attorney and together with his team is ready and willing to help you organize your Real Estate Purchase in Colombia for the best possible outcomes. You can schedule an appointment with him via phone or WhatsApp: +57 320-572-4423 Office: 20 A street No 21 -30 Manizales Office #603 Spanish and English.

LinkedIn:linkedin.com/in/cristian-camilo-daza-lópez