The new Law No. 1,129 “Nicaragua Real Estate Brokerage Law” (“The Law”) was published in La Gaceta, Diario Oficial No. 169 of September 8, 2022, which arises with the purpose of regulating brokerage of real estate, the rights and obligations of brokers and agents, the brokerage contract, to protect the legal relationship between the contracting party and the broker, develop the confidence of the real estate market, ensure the capacity of the broker for such business and protect the consumer in relationships for the provision of real estate brokerage services.
The Ministry of Development, Industry and Commerce (“MIFIC”), through the Real Estate Brokerage Unit, will be the competent authority for the application of the Law, being in charge of the regulation, control, supervision and sanction of brokers and agents.
It is important to note that to practice real estate brokerage, the new Law provides for the need to obtain a “Real Estate Broker License”, which will be valid for 5 years (renewable). It will be the upcoming regulations of the Law that will determine the requirements and procedures for obtaining this license.
The administrative fees to pay for the issuance of the various titles related to this Law are as follows:
|1||Real Estate Broker License – Legal Entity||US$ 400|
|2||Real Estate Broker License – Natural Person||US$ 200|
|3||Course to process Real Estate Broker License and ID payment||US$ 150|
|4||Real Estate Broker License Replacement||US$ 100|
|5||Real Estate Broker License Renewal – Legal entity||US$ 400|
|6||Real Estate Broker License Renewal – Natural person||US$ 200|
|7||Real Estate Agent ID||US$ 50|
|8||Course to process a Real Estate Agent License||US$ 100|
|9||Update seminar for Real Estate Agents||US$ 50|
|10||Replacement of Broker and Real Estate Agent ID||US$ 30|
|11||Renew Real Estate Broker and Agent ID||US$ 50|
|12||Registry of powers of attorney of the representatives of the Real Estate Brokers||US$ 20|
Likewise, the brokers will be considered as “Obligated Subjects” for the purposes of the legislation on the Prevention of Money Laundering, Financing of Terrorism and the Financing of Weapons of Mass Destruction, and must comply with all the regulations that this matter entails, including its registration with the Financial Analysis Unit (“UAF”).
This Law comes to repeal the old Law No. 602 “Nicaragua Real Estate Brokerage Law” and will enter into force 90 days from the date of its publication.
Those who currently engage in this economic activity will have a period of 90 days counted from the entry into force of the Law to apply before the MIFIC for the Real Estate Broker License and may incur into a fault otherwise.
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Avil Ramírez Mayorga
CENTRAL LAW in Nicaragua