Some questions about owning property in Honduras answered…

[Nick]

Pretty much anyone can buy property but DO NOT buy a property sight unseen. Most of the people that get in trouble in Honduras buy land off the internet without even seeing it. You must come and physically see what you’re getting. That being said, the easiest way to stay out of trouble is to work with a knowledgeable real estate agent. Ask for their resume. Ask for referrals from people that have used them. Interview them. How long have they sold real estate? Check them out. There is no licensing here. A good real estate agent should be able to refer you to reputable attorneys. Also never use the sellers attorney!

Probably nowhere is "Buyer Beware" more needed than in Honduras and not just for buying property but for buying anything even down to groceries. I read a while back about several Honduran property horror stories. One to a crooked attorney who basically stole the property, one to a crooked municipalidad who "lost" the original 1950's family deed and substituted another deed showing the property belonged to a rich family in La Ceiba, and one who "bought" property from someone who didn't actually own it. People in the past have also bought property with the understanding that water and electricity would be provided and they haven't been. There are articles in the newspapers often concerning property scams and such and note it happens as often to Hondurans as to outside investors.

The US Embassy site also supposedly has some warnings about buying property. If you’ve already been burned, even if you have a clear cut court case, you should know is that there is no justice for gringos here in Honduras. Cases can go on for years but in the end the Honduran will most likely win no matter what kind of evidence you present.

As for what you're going to pay, property prices vary a lot depending upon location. Some are much lower than the US and some are similar, depending upon where you are buying. Property taxes are much lower than the US, typically running 10% of what it costs in a big US city for a similar size lot and house. Of course, services are about 10% as well. Be aware too there is a Gringo Price and a Honduran (Catracho) Price for everything in Honduras, from taxi fares to property. Lately property prices are rising rapidly since Americans as well as Europeans find Honduras a cheap place to invest and retire.

Note finally that Honduran law states a foreigner can own property on the beachfront up to 3/4 of an acre. Above that you have to form a corporation. It is simple and inexpensive, usually costing under $500. Beware though some attorney’s may try to charge a lot more to set one up.