The existing and comprehensive Law 602 on Real Estate Brokers in Nicaragua “Ley de Correduría de Bienes Raíces de Nicaragua” has been re-written, updated and presented to the National Assembly as the Nicaraguan Real Estate Broker Law Initiative (Iniciativa de Ley de Correduría de Bienes Raíces de Nicaragua).
The government’s position is that “the real estate business in Nicaragua has expanded so it is necessary to ‘strengthen the legal system’ as well as the transparency of operations between the owners of real estate, the broker, real estate agent and the public”.
Although on the books as a bona fide law of Nicaragua (because it was published in La Gaceta on the 12th of June 2007), Law 602 has always been referred to as “inactive”. This was mainly due to the “Real Estate Technical Commission” (Comisión Técnica de Bienes Raíces) not being established and therefore the regulations for licensing and everything else under that were never addressed.
Proposed Law
UPDATE: 7th September 2022 – National Assembly approves this law for Real Estate Brokers in Nicaragua
Once approved, this new law will repeal Law 602 and the new law will enter into force 90 days after it has been published in La Gaceta, Nicaragua’s Official Gazette.
Draft Copy of Proposed Law “Nicaraguan Real Estate Broker Law Initiative” (Iniciativa de Ley de Correduría de Bienes Raíces de Nicaragua) including proposed fee schedule.
Real Estate Technical Commission
The proposed new law once again mandates that a “Real Estate Technical Committee” is established and calls for it to be made up of representatives from The Ministry of Development, Industry and Commerce (MIFIC), the Nicaraguan Institute of Territorial Studies (INETER), the National Registry Directorate of the Supreme Court of Justice, the Nicaraguan Institute for Municipal Development (INIFOM) and the Financial Analysis Unit (UAF) as well as a representative of the real estate sector.
The law establishes various fees from US $50 to US $400 (although all rates are quoted in the traditional legalese currency of the “Central American Peso- $CA” which is equivalent to one US Dollar).
MIFIC will be the organization providing front line administration in training courses and licensing as required. A training course for an agent is US $100 plus US $50 for the agent’s identity card.
The broker’s License for example will cost US $400 and will be valid for a 5 year term and MIFIC will “Publish a list of all licensed Real Estate Brokers and Authorized Agents”.
It is presumed that the Real Estate Technical Committee will also “police” compliance with the numerous new paperwork obligations for real estate brokers and their agents.
UAF
The new law proposes that Real Estate Brokers in Nicaragua (and their agents) will be more involvement with reporting transactions to the Financial Analysis Unit (UAF).
NOTE: Since the 7th of March 2016, all Real Estate Brokers, and Real Estate Agents were required to register before the Financial Analysis Unit (UAF).
The UAF is a Nicaraguan government agency formed to prevent international organized crime. In that regard, UAF analyzes financial, accounting and legal information in the fight against money laundering activities carried out by organized crime.
Since that date, the obligation has only been to register, however, it was expected that in the future, a full reporting structure would be implemented.
