If you are thinking about investing in real estate in Colombia, one document will define the success and safety of your transaction: the Promise to Purchase Agreement (Promesa de Compraventa).
Many foreigners see it as just a “pre-contract.” In reality, it is a binding legal contract that obligates both buyer and seller to fulfill their commitments. More importantly, since Colombia does not use escrow accounts like the U.S. or Europe, this agreement becomes the main legal safeguard for your investment.
What makes this contract essential?
- Clear identification of buyer and seller with all legal details.
- Precise description of the property: registration number, address, area, and annexes.
- Well-defined obligations: the seller delivers the property free of liens and up to date on taxes; the buyer commits to paying the agreed price.
- Closing certainty: date, notary, and conditions for signing the public deed.
- Price and payment terms: exact value, method (bank transfers, trust accounts, financing), and deadlines.
- Penalty clauses: since no funds are held in escrow, these clauses act as the real guarantee against breach of contract.
Why does it matter so much?
A poorly drafted Promise to Purchase Agreement can expose you to serious risks: losing money, facing lawsuits, or even being unable to register your property. On the other hand, a carefully prepared agreement ensures legal security and peace of mind throughout the transaction.
How we can help
At Jaramillo Law Firm, we specialize in guiding international investors through every step of the Colombian real estate process. From drafting and reviewing contracts to handling registrations and compliance with local regulations, we make sure your investment is safe, transparent, and successful.
Thinking of buying property in Colombia?
Contact us today and let us protect your investment from day one.