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Thread: Land with title used as security for security for a second piece

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    TRN Science officer bill_bly_ca's Avatar
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    Default Land with title used as security for security for a second piece

    Chilo has title to a small parcel of land.

    There is a second parcel we have found within Masaya which we would like to use parcel #1 collateral to buy Parcel #2.

    Anyone done this and willing to share pointers?

    Additionally, both parcels are sub $10K and would be all done under Chilo's Celdula to , as obi wan would say, "Avoid imperial entanglements"
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    Dog Whisperer cookshow's Avatar
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    Default Re: Land with title used as security for security for a second piece

    Chilo may be better off hauling in the Chele for collateral than the land title.
    ‎"You know what you say when people tell you you can't do something? Fool, shut your mouth up!"
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    Active TRN Member RGV AG's Avatar
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    Default Re: Land with title used as security for security for a second piece

    True dat
    v
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    Default Re: Land with title used as security for security for a second piece

    Quote Originally Posted by bill_bly_ca View Post
    Chilo has title to a small parcel of land.

    There is a second parcel we have found within Masaya which we would like to use parcel #1 collateral to buy Parcel #2.

    Anyone done this and willing to share pointers?

    Additionally, both parcels are sub $10K and would be all done under Chilo's Celdula to , as obi wan would say, "Avoid imperial entanglements"
    Bill, a few observations ...

    This is not a common practice in Nicaraguan real estate deals. Nonetheless, the series of transactions needed to accomplish the deal would be covered entirely and directly by Nicaraguan contract law and there is nothing special you would have to do aside from having lawyers for both sides negotiate the deal in ways that meet all the legal niceties.

    Having said that, both you and the other party would probably have to undertake protracted negotiations so that each of you would cover your respective asses financially and legally.

    Given the small amounts of money we are talking about, I wonder whether it might be less convoluted, less time-consuming and labour-intensive, and less risky if you would just buy the other property outright and put Chilo´s property up for sale. The real estate market in the Masaya area is currently not as slow as in other parts of the Pacific region, especially for properties with clear title priced at under $10k. I sometimes wonder whether those of us whom negotiate small real estate deals in Nicaragua make things more complicated for ourselves than the situation warrants.

    Also, it doesn´t matter whose name the deal would be done under since foreigners have exactly the same property rights as Nicaraguans, and for a small deal like this they would be treated equally in a Nicaraguan civil law court, assuming that the neither of the properties are currently being occupied by a poor family with young children.

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    TRN Science officer bill_bly_ca's Avatar
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    Default Re: Land with title used as security for security for a second piece

    Yea..

    It is just having the cash..

    You see Chilo's land is starting to produce a dribble of rental income after 6 yrs of sitting unused and vacant.

    Logic is to roll rental money from the existing lot to pay down the new one. Using 80% of what we get now it would be paid off in the 6 yrs before we swap time betwixt here and there.

    The "new" is in a group of empty lots so no poor people to kick out. Supposedly 7 or 10 are sold already. Also SIL who has been bellyaching for years to go back full time is itching buy one lot as well and get things started. It is within 800M of SIL Marta's house.

    Even though some news organizations tout the Canadian middle class as the worlds wealthiest now , I certainly do not have the sub $10K in cash sitting around.. And I currently have belly full of debt and am really really really really (did say really?) not looking for more...


    Oh well we will see what happens.

    Only 20 days to go..
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