About Closing Costs for real estate

Hello everyone
To get everything ready before attending the closing when buying real estate in Colombia , I want to share this information related to the paperwork and closing costs . I hope it can be useful. Normally you have to reserve some extra money to pay this costs.

They are about 2% to 2.5% of the agreed upon Sales Price.

Closing costs includes :
√ Notary expenses
They are 0.5% upon deal value (It includes notary's fees, authentic copies, IVA sales tax, etc.)
√ Register fees (0,5%)
√ Local Taxes and other charges (1%) ( this includes municipality taxes - Boleta Fiscal-).
√ Income Tax (Only for the seller 1%)
They are usually split in both parties, or it could be agree.
The following are the cost that normally each part have to assume:

To the Buyer

√ Title enquiry
√ Appraisal if needed
√ Notary's office fees as agreed
√ Register's fees as agreed
√ Mortgages costs. If you are buying using a mortgage loan, notary and register fees must be paid and are calculated according to the amount of the mortgage.

To the Seller
√ Payment of property taxes. h/she has to provide a certicate (Paz y Salvo Predial) which indicates that all municipal taxes on the property have been paid.
√ Payment of value gain property Tax. h/she has to provide a certicate. (Paz y Salvo de Valorización) which indicates that all taxes related to the increases in the value of the property due to improvements to the property or area have been paid.
√ Notary's office fees as agreed
√ If the seller is an individual, then 1% of the sales price is deducted as withholding tax (Retencion en la fuente). It is deducted at the source with the objective that the income does not leave the country with out being taxed.

Mauricio
www.buycolombiarealty.com

By Maojaimes on Jul 27, 2007, 09:59 in Visa & paperwork.

Gator says on Jul 27, 2007, 14:53:

figure 3% and you will not be surprised

"Brevior Sltare Cum Deformibus Mulieribus Est Vita!" .

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pedro says on Jul 27, 2007, 14:58:

Mauricio, thanks! Appreciate the info.

que nota!

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