10. Real Estate Acquisition and Leasing

The real estate regime in Colombia does not differentiate between the rights and obligations of nationals and foreigners.

What is the process for the acquisition of real estate? 

• Due Diligence: this stage covers due diligence in the real estate, urban planning and security spheres.
  • Real estate: a title study is conducted to verify that the real estate intended for acquisition has no impediments to its transfer or ownership retention.
  • Urban planning: Compliance with urban planning regulations is assessed, along with the area’s safety, to ensure the feasibility and preservation of the project to be developed.
• Letter of intent and promise of sale: the letter of intent (generally non-binding) establishes the terms and conditions of the possible sale; and in the promise, a contract is made in which the parties commit to carry out the sale (binding).
• Signing of the Contract: it is formalized by public deed before a notary. Such deed must be registered in the Office of Registration of Public Instruments, so the ownership of the real Estate property is effectively transferred.

Commercial Leasing

The parties of the contract are given freedom to negotiate the terms of the commercial lease.

It is important to note that a lessee of commercial establishments who has occupied the property for more than two years and has adhered to the contract’s terms and conditions has the legal right to automatic renewal of the contract, subject to certain legal exceptions.

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To learn more about the acquisition and lease of real estate in Colombia, we invite you to download and consult the full chapter.