Buying in a foreign market can be a bit confusing compared to the US or Canada for example.

In Guatemala, the property titles are held in the Central Registry, located in Guatemala City in Zone 1.

Your lawyer will do a title search, and compare the registered documents against the seller’s identification documents. If everything matches, then in 99.9% of the cases, everything is fine.

The registered documents contain any liens or encumbrances on the property, such as a mortgage, or a personal loan secured by the property and so on.

What about the .01%?

Unscrupulous lawyers, working with people inside the central registry can falsify documents to show that the property belongs to the person representing themselves as the owner. This happens at times, when the real owner is deceased, and no heirs are apparent.

Some lawyers, but certainly in the minority, will resort to getting the title into another person’s name, offer the property for sale, and then split the proceeds. If that should happen, and eventually it comes to light, then the purchaser will lose the property, and any buildings or improvements that were done to the property. By this time, the lawyer and his associates have disappeared into thin air, and there is no recourse to the buyer.

How can you protect yourself from the possibility of this type of fraud?

In Guatemala, and all other Central American countries, you can purchase title insurance through Stewart Title service. It is basically an insurance policy that covers and protects you in case this should ever happen. The title company will defend any action that may occur, and will reimburse any monies that have been paid should a claim prove to be accurate.

As this is something that is highly unlikely to happen, it is still an inexpensive way to guarantee that you will not suffer any loss in case you are somehow in the .01 category.

Century 21 Casa Nova is in a position to offer Stewart Title insurance, and if you feel that it would be a wise decision, we can certainly provide the service.