Before 1990, foreigners had to form a corporation to purchase land legally in Honduras; they were not allowed to buy land as individuals. In 1990, however, a new law was enacted to encourage foreign investment in real estate. Decree 1990 makes it possible for you to purchase some property as an individual —that is, land of up to three-quarters of an acre. (A husband and wife together can own an acre and a half.)
Article 107 of the Honduran constitution disallows foreign ownership of land within 40 kilometers of borders, and also restricts ownership on coastal areas. However, you may be able to purchase within these restricted areas by filing for authorization at the Tourism Institute. If permission is granted, you must build within 36 months, or face a fine of 20% on the value of the property.
Title insurance ensures that your new property will indeed belong to you, and that you are protected against future claims on the property related to past matters. It generally costs 0.5% of the purchase price, or a minimum fee ($1,000). You can purchase title insurance after a property is in your name, but we recommend you contact a title insurance company before you buy your home or land. We recommend Turalu Murdock at First American Title Insurance.