Previous real estate articles

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Legal advice on

Title seraches

Online column by MARIE MENDEL covering stories and facts on Real Estate in Nicaragua, will return.

previous columns:
Lesson 1: This might get dirty
Lesson 2: It ain't over when the fat lady signs
Lesson 3: If you're checking title, you might get the finger
Lesson 4: Take it to the bank OR X marks the spot
Lesson 5: Francisco, a fence, and a Ford I could afford

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continued from home page.

Buying Land from a Possession Title?

By Orlando J. Moncada,
Attorney at Law

In our previous column we dealt with the issue of Land Reform Titles. In this edition, we will address other forms of titles that are somewhat questionable. In many cases they do not offer the guarantee that you deserve for your purchase. They are called TITULOS SUPLETORIOS or Possession Titles.

According to Nicaraguan Laws if a person has been in possession of a piece of land continuously, publicly and peacefully for the duration of at least one year, this person may appear before a Civil Judge and request a possession title that replaces a real deed, but it is not as valuable as is a property deed.

The application process is fairly simple, providing there are no oppositions from people believing they have equal or higher rights or from the State of Nicaragua itself. The applicant applies for the possession title in writing and presents two witnesses that will attest the applicant has held the land as provided by law.

Let’s suppose the applicant gets the possession title. This title only certifies the possession but not the domain. Eminent domain of a property has two elements: a) A property deed (a strong “escritura publica”, and b) The possession, which means materially holding the property without conflict (the property is in your power and under your uncontested authority).

The possession title is NOT a domain title. If you want to buy land and the seller or agent presents to you a “titulo supletorio”, your purchase might not be fortunate. For instance, take into account that if a person holds a deed on the same property and never knew that the holder of the possession title requested and obtained such title, at any moment he or she can go to court and request the cancellation of the possession title and try to recover the property. If the legal action is well based, chances are that the petition will be granted and the ruling affects anyone on the land.

The Nicaraguan legal system has something called “Prescripcion positiva”. It means acquiring a right by the passing of time. In property issues ordinary prescripcion positiva requires a fair title and possession of ten years. Defining fair title could take up a lot of space but in simple terms, the Supreme Court has consistently stated that titulos supletorios are not fair titles. What the Supreme Court has said is that if you buy from a holder of the titulo supletorio, your document is a fair title therefore the ten year requirement should work for you.

Another form of acquiring a property is the extraordinary prescripcion positiva, which only requires continuously, publicly and peacefully holding possession of the land and a Judge’s ruling that will work as the deed of property.

As you may guess, the risks involved in buying land based on a titulo supletorio are evident. Ask for advice, check records, do the homework. It is your hard earned money. Hold on to it.

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