Nicaragua Moves Toward the Regulation of Real Estate Brokerage Activities
Róger Pérez, Partner at ARIAS Nicaragua and an expert in real estate law, presents this article on the new regulations governing real estate brokerage activities.
In recent years, Nicaragua has undergone a process of formalization and regulation of real estate brokerage activities, which began in 2022 with the enactment of the Real Estate Brokerage Law and its corresponding Regulations. Supervisory authority under this legal framework was vested in the Institute of Urban and Rural Housing (INVUR). Subsequently, in 2024, INVUR was designated as the Prudential Regulator of real estate brokerage activities, thereby granting it enhanced authority and involvement in the oversight and control of such activities.
In this capacity, on March 12, 2026, INVUR issued Administrative Resolution No. RA-CD-019-02-2026, through which the following regulations and code were approved:
- Regulations on the Registration of Brokers and Agents.
- Regulations on the Imposition of Sanctions on Brokers, Agents, and Unauthorized Persons.
- Inspection Regulations for the Real Estate Sector in Nicaragua.
- Code of Ethics for Real Estate Brokers and Agents.
Through the issuance of these regulations and the code of ethics, INVUR establishes a comprehensive and specific regulatory framework governing real estate brokerage firms, their agents, and other participants engaged in such activities.
With respect to the Regulations on the Registration of Brokers and Agents, their purpose is to raise the threshold for market entry, reduce informality, and enable the State to maintain an updated registry of participants engaged in real estate intermediation.
The Regulations on the Imposition of Sanctions strengthen INVUR’s enforcement authority by establishing clear consequences for irregular practices within the market. This framework introduces an administrative sanctions regime applicable both to duly registered brokers and agents who fail to comply with their obligations, as well as to individuals operating without proper authorization. Sanctions include fines, suspension or cancellation of registration, and measures against unlawful intermediation.
Through the Inspection Regulations for the Real Estate Sector in Nicaragua, a mechanism for direct oversight is institutionalized, expanding INVUR’s role beyond registration into active market surveillance. These regulations empower INVUR to supervise real estate transactions, verify compliance with legal requirements, and conduct on-site inspections of projects and transactions, among other functions.
Finally, with the adoption of the Code of Ethics for Real Estate Brokers and Agents, a standard of professional conduct is established, which may serve as a basis for disciplinary actions and contribute to increased trust within the real estate sector. Notably, this Code raises the standard of professional responsibility required of brokers and their agents. Among their obligations, they must have adequate knowledge of the property and review all relevant documentation prior to accepting a listing for administration or sale, to prevent errors or omissions that could adversely affect the public, clients, or other brokers and agents.
Brokers and agents are ethically bound to review the legal and technical documentation of the property and its owners to ensure compliance with applicable law, and, where applicable, to ascertain whether the property is subject to litigation, liens, marginal annotations, encumbrances, or other limitations on ownership. They are further encouraged to seek the assistance and/or advice of legal counsel specialized in real estate matters and, when necessary, professional surveyors.
By introducing mandatory registration, a sanctions regime, state inspection, and a code of ethics, INVUR establishes a more stringent system of control and professionalization within the sector, with direct implications for the operation of brokers, agents, and other market participants. These measures are intended to eliminate informal practices and standardize the rules governing real estate brokerage activities, as well as to strengthen INVUR’s supervisory authority over such actors.
This regulatory framework represents a significant shift in the real estate sector. While the transition may pose challenges for existing brokers and agents, as well as for new entrants, the establishment of clear and enforceable rules is ultimately expected to benefit all stakeholders. Accordingly, the initiative and its implementation should be viewed in a positive light.