The "Letter of No Objection" demystified
1.)What is it and do I need it?
The "Letter of No Objection" is the governments confirmation that there are no outstanding issues with the property as far as they are concerned.
1.a) All issues related to the Reform Agraria Act were resolved and the original owner was either given back the property or he/she was compensated by the government.
1.b) The property is not part of government land.
1.c) The property is not part of an indigenous community and therefore not salable.
1.c) The property is marketable as far as the government is concerned since this letter also indicates the government has no claim on the property.
Do I need it?
If the property was affected by the Reform Agraria Act, you MUST have the letter even if you purchased the property and all documents were found to be in order.
In addition, any property with a titulo supletorio in its Historia Registral MUST have the LNO.
If you are not planning on selling the property or place a lien against it, you don't need it.
If you ever want to sell the property, you will need this document.
2.) What does it not guaranteed?
2.a) The validity of the individual title. (You still need to check this at the registry office.)
2.b) It does not guarantee the property is free of liens against it. (You still need to check this at the registry office.)
2.c) It does not guarantee the person trying to sell the property is the rightful owner. (You still need to check this at the registry office.)
3.) How does this document differ from the previous system?
In the past, an individual Constancia had to be obtained from four different agencies:
OOT = La Oficina de Ordenamiento Territorial
OCI = Oficina de Cuantificación de Indemnizaciones
OTU = Oficina de Titulación Urbana
OTR = Oficina de Titulación Rural
The current administration placed all four office under the control of the Indendencia De Propieades.
The Intendencia in turn works under the Procuraduría General de la Republica (PGR)
((OOT, OCI, OTU, OTR) >>> Indendencia De Propieades)>>> Procuraduría General de la Republica (PGR)
The letter of objection can take as little as one month to obtain. Complicated cases and applications submitted with incomplete documentation can take up to one year.
4.) How and where to apply for the Letter of No Objection?
4.a) Most people prefer to have a lawyer handle this for them. Be careful! Many lawyers have no idea what is required and you can end up waiting for a long time and pay a lot of money.
4.b) Offices that specialize in dealing with government agencies are usually your best bet in obtaining the Letter of No Objection quickly and problem free. While a lawyer may submit one application every so often, these offices do this on a daily basis. They know exactly what needs to be submitted. They know the people working on the files in Managua and in the Departments. If they are any good at their job, they will be following up on a weekly basis and will get you the quickest results.
4.c) All applications need to be filed with the Procuradoria Office in the Department where your Property is located.
How much does it cost to get the letter of Non Objection?
The letter itself is FREE. If anyone tells you differently, walk away.
There is quite a bit of work involved in filing the application, so most agencies will charge in the neighborhood of $150.-- for standard single property. If your own a development the price will naturally be higher since each lot will require a letter.
I have heard of lawyers charging up to $ 500.-- for this service. In my opinion, this is excessive.
Here comes the shameless plug. Sort of a trade off for the info provided:
My office is processing these application all over Nicaragua. Anyone wishing to find out more, please PM.