Best way to make payment on property sale
Replies: 14 - Last Post: Jan 11, 2013 11:17 AM Last Post By: RayitoG
Dec 20, 2012 10:05 AM
Best way to make payment on property saleWe were wondering what would be the best way to make the payment for a property in Nicaragua since our funds are abroad. Can transactions/ transfers be made or do we need to open an account in one of the Nica banks? What is the safest way to go about this???
Dec 20, 2012 12:21 PM
Dec 20, 2012 3:20 PM
Dec 20, 2012 4:49 PM
Dec 21, 2012 3:38 AM
6As chef says you can certainly instruct your bank to make a wire transfer to the recipients bank providing you have all his account and branch details, including normally the postal address of the branch. You would imagine electronic transfers to be immediate but it still takes up to 3-5 days to appear in the recipients account and you will normally be charged $30-$60 for the service depending upon your bank. Your bank, particularly if it is a small one, may use an intermediary bank for the transfer which can double the time and the cost.
Anti- money laundering legislation means that you will may have to complete a document spelling out the purpose of the transfer and where your funds originated from- even if they have been in your bank for some time!
Such transfers cannot be reversed and with all property deals you should use a lawyers escrow account to hold funds until the point of completion. Again, because of money laundering legislation, proper escrow accounts are under much more scrutiny and are expensive to operate, for this reason they may attempt to persuade you not to use one but it is the only way to have some protection for your funds once they leave your account.
Ultimately if you are going to have property and interests in Nicaragua then you should open a bank account there. Again this process is under more scrutiny but you should be able to able to open a deposit/savings account easily enough. This will operate exactly the same as a checking account (i.e. includes a Visa/ATM card) but without a check book. You can follow the procedure above to transfer funds to your account and make further transfers to local accounts but going to the branch or using online banking.
Dec 21, 2012 5:40 AM
7You might like to talk to Caye Bank. While it is based in Belize, the principals have heavy involvement in Nicaragua property development, so could likely advise you. They also make property loans in Nica, although the interest rate is quite a bit higher than for US properties. I am personally acquainted with the principals, who are Americans.
Best of luck in your endeavors.
Dec 21, 2012 6:50 AM
8#5 now one must have Salvadorian residency to open a bank account in El Salvador.
Wiring funds directly to the lawyer is the best way here.
Dec 21, 2012 7:03 AM
9We used an electronic bank to bank transfer for our money for our property to the seller's bank acct. We made 3 small transactions, which cost us $50 per transaction. There was some problem with wiring large amounts of money because of the Patriot Act and possibly signaling money laundering. The smaller electronic transfers went through without a hitch. You cannot open a bank acct. in Nicaragua until you have legal residency. At the time we bought our property, we didn't have residency, so this was the easiest way.
Dec 21, 2012 7:27 AM
Dec 21, 2012 4:56 PM
11#8, I did not have a Sal bank account but the property had a loan on it so I wired the money from my US account to the bank to clear the loan and then gave the owner an additional sum in cash. After I had title to the house I could have gotten residency but saw no point in it. I have since sold the place.
Dec 21, 2012 5:37 PM
12#11 not sure what your point is, other than you chose not to use a lawyer.
BTW owning property is not a requirement for residency in El Salvador.
Dec 21, 2012 6:19 PM
13#12, You brought up bank accounts and my point was that you can buy property without one (bank account or lawyer).
Although not a requirement for residency, it is a way to obtain residency in Sal for those who wish to move there. Ditto Nicaragua.
Dec 22, 2012 8:27 AM
14#13 you are correct about not needing a bank account or lawyer to buy property. Not sure why anyone would buy property in a foreign country without local legal advise, but to each his own.
However owning property in El Salvador has NO bearing whatsoever on obtaining residency. It is NOT considered in the process. It may have been under a previous government? NOT now!!!
Possibly it would be an idea to check the facts before posting false information!
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