ILN: BUYING AND SELLING REAL ESTATE - AN INTERNATIONAL GUIDE

[BUYING & SELLING REAL ESTATE IN COLOMBIA] 81

more profitable one or, the land is incorporated from urban-to- urban expansion. This tax is set only once by each municipality, and the law defines when its payment become enforceable to the property owner. d. Administration Fees: The administration fees are the amount charged to each private property under a building or a group of buildings subject to the condominium regime. Such amount is intended to cover administration costs such as surveillance, cleaning, equipment maintenance or replacement, public utilitiesof the building, among others. 7. Brokerage: The real estate brokerage contract has as object to put potential buyers and sellers in contact to enter a sale and purchase transaction over real estate. Brokerage is a partially regulated activity in Colombia; however, a license is not required to operate as a real estate broker. Commission rates are freely agreed by the parties but generally the commission is equivalent to 3% of the sale price of the property when located in urban areas and 5% when located in rural ones. It is not necessary to have a real estate agent, it is simply an additional activity. However, real estate agents serving under this kind of transactions may help to find the best property and to save time to complete it.

ILN Real Estate Group – Buying and Selling Real Estate Series

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