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.

That means:

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.

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Food for thought

thanks for taking the time and filling in some gaps on the road to due diligence,scary journey in the wild west. On this line of valuable information is there such a thing as a reliable, legal/registered and recognised experienced escrow agent in the mix. Some-body you might recommend. preferably bonded.

Escrow Agents

I am sorry to say, Escrow agents do not exist in Nicaragua.

In order to get an escrow account set up we have been working with the National Bank and the regulatory agencies for almost 4 years. We are making progress but it is difficult.

In order to work around this problem we have done the following:

Each client receives their own client account. This is a sub account under our business account. If the client is in country, he/she can have signing authority on the account if so desired. Mostly the buyer just has us handle the transaction. All of our institutional clients do.

There is no way to bond anyone since no legal mechanism is in place.

Bottom line:

Work with someone that has been in business for some time and has a descent reputation they would not wish to jeopardize.

NEVER put the funds into the sellers lawyers account. (I personally learned a lesson when I lost money early on. I had my own lawyer, representing me in a purchase, hold the funds and he just spent it. Needless to say, I no longer use him and his well known firm in Managua.)

If you are using a buyers agent, let him hold the funds if you are comfortable with it. Using a buyers agent is highly recommended if the sale is not 100% clear cut. We represented some members of NL and due to unforeseen problems one decided to withdraw form the purchase.

Had he acted on his own, he would have lost quite a bit of money. For him, the fee charged was a great investment, and I have gained another friend and probably a loyal client.

question

What if the land was purchased several years ago, as mine was - do I still need to get this letter? And for that matter, how will I know if there aren't yet more documents that will be required sometime along the line....When is "it's a done deal" really mean that?

In order to determine if the letter is required

How long ago you purchased the land is really irrelevant. The LNO is a relatively new document requirement. It is only applicable in certain cases as I pointed out.

I need to see a Historia Registral. This is a History of who owned the property. From when to when. It will give me the dates of each sale and where each registration can be found. This will tell me if it is necessary to obtain a LNO.

The time span covered is usually a minimum of 31 years but I have seen them go back to the 1800's.

This is a document EVERY property owner should have. It is available from the Registry Office. They will charge for this and the cost can be up to $ 100.-- and a little more in rare cases.

In you case parrotheadnica, it needs to be obtained in Rivas.

If you have the document already, scan and email it to me and I'll take a look.

The document looks similar to your escritura and is on official legal paper. The title of the document will say: HISTORIA REGISTRAL

Depending on how competent you lawyer was when he/she drew up your title document, you likely have one already.

For all you owners of property in Nicaragua. This may be a good time to see if you have such a document. If you do not, it may be a good investment.

Be advised, it takes about one to two weeks for the Historia Registral to be produced by the Registry Office in the Department where your property is located.

If anyone needs help in getting this done, please PM or email me and I'll tell you what's involved in getting a Historia Registral.

As for your other question: You can simply ignore the LNO and never sell the land. You will still own the land. You may not be able to sell it when you want to.

Will this be the last 'new' document ever required? I can't answer that with100% certainty.

If you ask my opinion, I can tell you, I would think this may likely be the end of the Reform Agraria clean up.

Will there be changes as to how property is registered and records are kept? Will there be new and different forms developed and required? Likely so! Now in my opinion this is a good thing. It tells me progress is being made and that the government gives a hoot and wants to do a good job.

At the risk of being accused as being too positive again I have to say this:

As a person working in the Real Estate business and a property owner, I applaud this government for tackling this issue. None of the past administrations had the guts to do so.

Amen!

"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."

this is so true!

Very useful

Now here is some really useful, practical information. A service is offered, but the details are clearly explained for anyone to use elsewhere. A recent extended thread included a lot of constructive criticism on site content, which was productive and even-handed. Let's remember that the site administrators/operators spend time and money to provide this information service to the community. Thank you!