A Step-by-Step Guide to Buying Property in Honduras
The buying process in Honduras is relatively simple. Note that all documents must be drawn up in Spanish, so be sure to hire a bilingual lawyer.
Step 1: Notary Conducts Title Search
As in most Latin American countries, notaries are responsible for overseeing the transfer of title. The first task of the notary is to conduct the title search. We strongly recommend that you take out title insurance on your Honduran property. U.S. citizens have been involved in at least 60 property disputes in Honduras over the years. And as more expatriates begin to buy in the country, that number is likely to increase. Before 1990, people registered land in private registries and did all kinds of things to get around the ban on foreign ownership of property. Some foreign ownership of land in the Bay Islands was contested, and people lost their property. Make sure you can legally own your property before settling on it. After your attorney notifies you that the title is clear and free, then, and only then, should you settle on your property.
Step 2: Notary Files Appropriate Documentation
Once the title search has been carried out, your notary will file either an escritura publica or a dominio pleno. An escritura publica indicates that the ownership of the property has been verified and that attestation of such ownership was filed as a public document when the transfer of the property took place. A dominio pleno indicates that there was no record of ownership prior to the transfer and that a judge must make a decision as to whether to grant title to a petitioner. Notice is posted for 30 days, during which the judge will talk to surrounding landowners to help him verify ownership. When the dominio pleno is finally issued, it serves as a public document and is as valid as an escritura publica.
Step 3: Title Is Recorded at Land Registry
The escritura is recorded with the local land registry. To ensure that your document is publicly registered, inspect it for a square stamp with the court’s registry number.