NICARAGUA: ESSENTIAL ASPECTS OF THE LAW APPOINTING A NEW ENFORCEMENT AUTHORITY FOR THE NICARAGUAN REAL ESTATE BROKERAGE LAW

Published on Apr 16, 2024

Law N° 1199, “Law of Addendum to the Law N° 428, Organic Law of the Institute of Urban and Rural Housing, and Amendments to the Law N° 1129, Law of Real Estate Brokerage of Nicaragua” entered into effect on April 12, 2024, with its publication in The Gazette, Official Newspaper.

The referred Law has the purpose of transferring to the Institute of Urban and Rural Housing (“INVUR” due to its acronym in Spanish) the powers that were once granted to the Ministry of Promotion, Industry, and Commerce (“MIFIC” due to its acronym in Spanish) as the enforcement Authority of the Law of Real Estate Brokerage in Nicaragua. Therefore, the INVUR will be the authority in charge of regulation, control, surveillance and application of sanctions to real estate brokers and agents that operate in Nicaragua.

The INVUR has been entrusted with the preparation of the national policy on urban and rural housing and promoting its development, with a special focus in the access to social interest housing. Through this new Law, the INVUR is entrusted with the supervision of real estate brokers and agents who usually play a key role in the acquisition and access to residential housing.

The new law presumes to guarantee the continuity and integrity of the licenses and certificates that were granted previously by the Real Estate Brokerage Unit under the Ministry of Promotion, Industry, and Commerce, since the latter is obligated to transfer, within thirty (30) business days all, files composing the National Registry of Real Estate Brokers and their Agents, for INVUR´s processing, filing, and custody. Hence, the appointment of a new enforcement Authority should in principle not impose on real estate brokers or agents an obligation to carry out any procedure before INVUR, since such authority shall give continuity to the work of its predecessor.

If you have any questions related to the subject matter herein, please do not hesitate to contact us.

Authors:
Bertha Argüello - Partner, ARIAS Nicaragua
bertha.arguello@ariaslaw.com

Uriel Balladares - Associate, ARIAS Nicaragua
uriel.balladares@ariaslaw.com


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