Complete guide· Offer · Contract · Deed
The purchase process unfolds in three key moments: the purchase offer, the promise of sale agreement, and the public deed. Each has distinct legal implications you should be familiar with.
First stepThe Purchase Offer
The purchase offer is the formal starting point of the negotiation. It is a written document in which the buyer expresses their intention to acquire a property under specific conditions — including price, payment structure, and timeline.
While this step is often handled verbally or informally, formalizing the offer in writing protects both parties and sets the groundwork for the negotiation.
What should it include?Property identification (address and cadastral registration number), offered price, proposed payment structure, validity period of the offer, and any special conditions such as repairs or delivery of parking spaces.
- Verify that the registration number matches the property’s address
- Check the “Certificate of Title History” (Certificado de Tradición y Libertad) through the Notary Superintendent’s office
- Confirm the seller is the registered owner or holds legal power to sell
- Review whether the property carries any mortgages, liens, or encumbrances
“A well-drafted offer prevents misunderstandings and lays the foundation for a transparent transaction.”
Second stepThe Promise of Sale Agreement
Once buyer and seller reach an agreement on price and terms, they sign a promise of sale (promesa de compraventa). This is the most important contract before the deed, and failure to honor it carries significant legal consequences.
In Colombia, this agreement must be made in writing — notarization is not strictly required, but authenticating it before a notary is strongly recommended. It stipulates the total price, down payment, deadlines for the signing of the public deed, and the earnest money deposit (arras) — an advance that signals both parties’ commitment.
Essential elementsFull identification of both parties · Property description with registration number · Total price and payment schedule · Deadline to sign the public deed · Earnest money amount and refund conditions · Penalty clause for breach of contract.
- Earnest money typically ranges from 5% to 20% of the property’s value
- If the buyer withdraws, they typically forfeit the deposit; if the seller withdraws, they repay double
- Include a reasonable deadline to sign the deed (30–90 days is standard)
- If financing is involved, specify what happens if the mortgage loan is not approved
- We strongly recommend having a lawyer
Third stepThe Public Deed
The public deed is the notarial act that finalizes the sale. Without it, the transfer of ownership has no legal standing. It is signed before a notary public and then registered at the Office of Public Instrument Registration — the exact moment when the property is legally transferred to the buyer’s name.
Estimated closing costsNotarial fees: ~0.5% of the value per party · Registration tax: ~1% of the value · Withholding tax (retención en la fuente): charged to the seller · Title search and processing fees: vary by notary. In total, buyers generally cover between 1% and 2% of the property’s value in closing costs.
- Both parties must appear with their original national ID (cédula de ciudadanía)
- The notary verifies identities, reads the deed aloud, and both parties sign
- The remaining balance is paid on the same day — by cash, certified check, or wire transfer
- After signing, the deed is registered (this may take 3–10 business days)
- Once registered, request the updated title certificate in your name as confirmation
“Registration at the Office of Public Instruments is the moment you legally become an owner. Don’t overlook this final step.”
At Santa Marca Finca Raíz, we guide our clients through every stage of this process — from finding the right property to handing over the keys. Have questions? We’re here to help.