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Home buying question

Hi guys,

I am still looking for information on an American Buying Property in Colombia Topic. I was reading all the forums i found about this topic:

http://poorbuthappy.com/colombia/node/12596#comment-91278
http://poorbuthappy.com/colombia/node/3175
http://www.banrep.gov.co/cambios/Circular832005/credcin83_2005.pdf

and much more, however I haven't read anything about how to pay the money and make sure that your investment is safe with the seller and he is not running away with your money.
The person who is buying does not know Colombia pretty well yet, and that person is very use to close Real Estate deals in the USA where your Title Company basicly analize everything for you and when everything is looking good and clear than the money is transfer to the SELLER'S ACCOUNT but not before, so that way you protect your investment.

Now in the Colombian case it seems like there is not such a thing like Title Company who hold the money on a safe place for you, so everyone is telling me (including attornies, Real Estate agents and banks) that the Buyer "HAS TO TAKE THE RISK" and sign the contract (contrato de compra venta) and give the seller part of the money in advance, and then the escrituras get sign.

Does anyone who bought a house in Colombia as a SOLE FOREING BUYER put the money on the Seller's account and wait???
It seems a little risky and very scarry to do so.

I got referred to this company: ALIANZA FIDUCIARIA, they are a Fiduciaria just like the name says, which I believe is a Trust-Deed in the USA, their website is www.alianza.com.co and they help on this kind of transactions.

Does any one knows anything about this company? Does anyone know a different way to close a deal in Colombia other than taking such a risk?

By harocha on Oct 19, 2005, 18:15 in Friendly Talkzone.

jackelin says on Oct 19, 2005, 19:11:

ALIANZA FIDUCIARIA is one of the strongest in Colombia. I wouldn't worry about them. I work with them on other transactions in Medellin and they are the best and most secure to work with.

Alianza's duties are to lessen the risk by guarding your money. You will have to qualify to open an account with them. They don't accept everyone or every builder as they are very carefull with their business.

Alianza can receive wire transfers of foreign funds in their correspondent bank in NYC and make the exchange to Colombia pesos. I think their fee is about 2% for the transaction. Remember that Alianza is not the seller they fuction more like an escrow agent receiving your funds and paying them out to the developer as the project progresses with construction in progress payments. You must be carefull of the reputation of the builder and the fiduciaria and the structure of the agreement because they all vary. Just the fact that Alianza is envolved in your transaction is very good because they will not accept a contractor with a bad reputation and they will not disperse your funds until the project is progressing or substantially completed.

0 funny, 0 helpful.