Property Disputes in Nicaragua
U.S. citizens should be aware of the risks of purchasing real estate in Nicaragua and should exercise caution before committing to invest in property. The 1979-90 Sandinista government expropriated some 30,000 properties, many of which are still involved in disputes or claims. Land title remains unclear in many cases. Although the government has resolved several thousand claims by U.S. citizens for compensation or return of properties, there remain hundreds of unresolved claims registered with the Embassy. Potential investors should engage competent local legal representation and investigate their purchases thoroughly in order to reduce the possibility of property disputes.
The Judicial system offers little relief when the purchase of a property winds up in court. The Embassy is aware of numerous cases in which buyers purchase property supported by what appear to be legal titles only to see themselves subsequently embroiled in legal battles when the titles are contested by an affected or otherwise interested third party. Once a property dispute enters the judicial arena, the outcome may be subject to corruption, political pressure, and influence peddling. Many coastal properties have been tied up in courts recently, leaving the ‘buyer’ unable to proceed with the intended development pending lengthy and uncertain litigation. In other cases squatters and/or former owners have simply invaded the land while the police or judicial authorities are unable (or unwilling) to remove the trespassers. Again, the Embassy advises that those interested in purchasing Nicaraguan property exercise extreme caution.
Please bear in mind that property cases in Nicaragua are under the jurisdiction of the Nicaraguan civil courts. The U.S. Consular Section cannot provide legal counsel or interfere in the Nicaraguan judicial process to force a favorable result on your behalf.
The U.S. Embassy can assist in the following ways:
The American Citizen Services Unit
If you are a U.S. Citizen involved in a property dispute, the ACS unit can provide a list of attorneys registered at the embassy and assist you in identifying courts and offices in the Nicaraguan Government that deal with property issues.
The Property Claims Office, Economic–Commercial Section, U.S. Embassy may also be able to assist.
More information from this office about the protection of U.S.-citizen-owned property can be found here.