The first and most important document to check when preparing to buy a property in Colombia is the so-called “certificado de tradición”. This is a detailed overview of the history and legally relevant information regarding the property, which is issued by the local competent authority (Oficina de Registro de Instrumentos Públicos). Here are some of the reasons why this document is so fundamental when considering the purchase of a property:
Formal property
Anyone who is offered a property, whether directly by the seller, through an estate agent or another third party, should always ask for a current certificado de tradición before making any further efforts, checks or purchase negotiations. The mere existence of a certificado de tradición for the specific property means, among other things, that the property legally exists. Properties are often offered on the market in Colombia, be it plots of land, fincas, houses or apartments, for which there is no certificado de tradición. If there is no certificado de tradición, you cannot acquire ownership of the property in question.
Comparison of the inspected property and the property according to the certificado de tradición
The certificado de tradición contains important data for the identification and description of the property, such as its area (“área”) or number of square meters, name of the building, number of the apartment, address, information on boundaries (“linderos”), etc. It is not enough to check whether the certificado de tradición itself is “in order and up to date”, you must also check whether it is identical to the property you have viewed on site. What sounds trivial is sometimes overlooked in practice – with serious consequences. For example, there are cases where buyers inspect the neighboring property on site, but then unknowingly buy a different property at the notary's office. Legally, only what is written in the papers counts and not what is seen on site.
Construction permits
Anyone buying a plot of land can draw conclusions from the certificado de tradición as to the approval status of the development. Sometimes house plots appear in the certificado de tradición as empty plots, i.e. without buildings. This means either that construction was carried out without a building permit or that the permit was not formalized for various reasons. In principle, it is the seller's responsibility to have the development recorded in the certificado de tradición. Anyone buying a plot with a building on it should always insist that the seller formalizes the development before the purchase is completed and before any down payments are made to the seller.
Area details
In the case of fincas in rural areas, there are often considerable discrepancies between the area stated in the certificado de tradición and the area that the finca actually occupies. It is important to know that legally you can only buy and purchase what is stated in the certificado de tradición. The frequent statement by sellers and estate agents that “in reality the finca is larger” is therefore illogical and incorrect. If the seller claims that the finca is two or three hectares larger, it is possible, for example, that this excess area belongs to a neighbor's property or is owned by the state.
Boundaries
The boundaries of a finca as stated in the certificado de tradición are just as tricky as the area. The boundaries are often unclear or refer to neighboring properties or natural objects, such as streams, rocks or vegetation features, which can change over the years. Boundary disputes with neighbors often occur due to vague descriptions of the boundaries. You should at least make sure that the boundaries correspond more or less to the picture of the finca that you have gained on site. If anything is unclear, you can also consult with neighbors and authorities.
Ownership structure
The certificado de tradición provides information on who the current owner or owners are. It is best to contact them directly if the initial contact is made via an estate agent or a relative of the owner. If there are several owners, you must check whether all owners are aware of the planned sale and agree to it. If one of the owners is abroad or unable to attend, a formally valid power of attorney for the sale must be requested. In the case of owners with whom you cannot establish direct contact, you should check if possible that they are not deceased. This is because even if the authorized representative can produce a power of attorney, this automatically expires with the death of the principal.
Encumbrances
The certificado de tradición also lists any encumbrances on the property, such as mortgages or protection mechanisms for family members or the seller's spouse. If there are encumbrances, it must be clarified how these can be cleared promptly and without major risks for the buyer. In the case of mortgages, it is usually unavoidable for the buyer to pay the seller's remaining debt to the bank in advance. However, the purchase should then be structured in such a way that the risk arising from advance payments remains as manageable as possible, which also includes a detailed examination of the seller and their history and creditworthiness.
Conclusion
Many other points could be mentioned that are important when reviewing a certificado de tradición and can be decisive in individual cases. It is also important to know that the examination of the certificado de tradición alone is not sufficient, but that the documents to which the certificado de tradición refers must also be read and examined. In most cases, these are previous notarial contracts (“escrituras”) and court decisions. This is because the certificado de tradición can theoretically be incorrect in terms of content. Although there is a certain degree of good faith protection regarding the accuracy of the certificado de tradición, errors can lead to legal problems and in some cases even jeopardize the acquisition of ownership. It is therefore important to check very carefully, thoroughly and extensively before buying a property in Colombia.
