Nicaragua Real Estate Transactions (3 of 3)

Due Diligence Before you Buy  Part 3 of 3

Title Insurance in Nicaragua

Nicaragua title insurance

We recommend title insurance on every transaction we represent. Although it is not required in Nicaragua, and previously unavailable until 1999, the insurance afforded by these policies is definitely worth the cost.

What you Get with an owners policy-

The owner's policy assures a purchaser that the title to the property is vested in that purchaser and that it is free from all defects, liens and encumbrances except those which are listed as exceptions in the policy or are excluded from the scope of the policy's coverage. It also covers losses and damages suffered if the title is unmarketable. The policy also provides coverage for loss if there is no right of access to the land. Although these are the basic coverages, expanded forms of residential owner's policies exist that cover additional items of loss.The liability limit of the owner's policy is typically the purchase price paid for the property. As with other types of insurance, coverages can also be added or deleted with an endorsement. There are many forms of standard endorsements to cover a variety of common issues. The premium for the policy may be paid by the seller or buyer as the parties agree; but usually it is paid by the buyer in Nicaragua. Title insurance coverage lasts as long as the insured retains an interest in the land insured and typically no additional premium is paid after the policy is issued.

According to First American, all policies are comprehensive and cover ownership issues, liens, mortgages, contracts, options, or other encumbrances on titles as well as fraud, forgery and rights of access to and from the land. These policies on foreign property also provide you a legal defense, if your title is challenged in the country in which your property is located.

Policies can be purchased in the United States, Canada, or the U.K., and the "coverage" is interpreted under the laws of the country where you purchase the policy. Reputable firms such as First American and Stewart Title offer title insurance in Nicaragua.

For more info on title insurance in Nicaragua, please contact Ground Floor Properties.