What Is a Property Lien (Gravamen)?

When buying or selling a property, it is important to be familiar with the legal procedures and documents required to successfully complete the process, as this transaction is one of the most important decisions in a person’s life. That is why you must consider several factors, one of which is the liens affecting apartments for sale in Medellín and in other parts of the country.

What is a lien?

A lien is a tax or contribution imposed on a person’s real estate property to secure an obligation in favor of a third party, generally to ensure the payment of a tax debt.

What types of liens can a property have?

Properties such as apartments for sale in El Poblado or in any other area of the city may have different liens, depending on various factors. One of them is the property’s status on the Certificate of Tradition and Freedom. Additionally, it is very important that all taxes are up to date in order to complete the sale or purchase of a property.

Below are the main types of liens that may exist:

Property tax (Impuesto predial): This tax is levied on the existence of real estate properties located in urban or rural areas. The amount to be paid is determined based on the cadastral value, which considers factors such as the property’s surroundings and physical structure. This tax must be paid annually by the property owner.

Capital gains or income tax: This tax applies to the profit obtained from the sale of a property compared to its purchase price, depending on how long the taxpayer has owned the property. This lien is generated by an increase in a person’s assets during a year and may result from the sale of a property or from winnings such as a lottery prize.

Betterment tax (Impuesto de valorización): This tax must be paid by owners of apartments for sale in Envigado and throughout the country who benefit from public works projects. This payment is occasional, and the amount is calculated based on the cost of the project. It can be paid before, during, or after the construction is completed.

Mortgage: A mortgage is a contract used to guarantee the fulfillment of an obligation. If the debtor fails to pay the debt, the creditor has the right to request the sale of the property to recover the outstanding amount.

When buying or selling a property, it is essential to understand the legal procedures involved. Both parties will gain valuable information, as it is important to know who is buying and who is selling the property in order to avoid short- or long-term issues.