Nicaragua is quickly becoming one ofthe hottest spots to buy property in the world. Foreigners arefinally realizing that the beautiful landscapes, amazingopportunities, and ridiculously low prices offered in this boomingcountry are unmatched anywhere.

Now, with the recent hurricanes in2007, real estate has never been more affordable and investors,retirees, and the adventurous are all seeking their chance to own apiece of paradise.

However, with the best locations andprices getting scooped up at a startling rate, the temptation formany is to rush in and buy, buy, buy. And, while it's true thatthose who wait are going to miss the opportunity to acquire cheap andbeautiful property, those that rush in too quickly and without theright preparation are going to get burned! When you try to live orinvest in Nicaragua without having the inside scoop, your tropicalparadise can quickly turn into a full-blown nightmare!

With 300 days of sunshine a year,Nicaragua is a great place to start your dream life. But, it's sovery important to make sure you equip yourself with the latestinformation, strategies, and techniques to make sure your investmentin a new life pays off. Specifically, you'll want to avoid some ofthe most common pitfalls of the Nicaraguan real estate market. That?swhy I've compiled a list of the top 3 things you must do if youwant to find your paradise in Nicaragua.

First, it is important for you torealize that the real estate market has recently undergone a completeoverhaul ? this can be good or bad for investors or both. The goodnews is that both the real estate and the credit market have beenliberated, or should I say, freed of unnecessary executiveentanglements. One drawback is that lack of title clarity, due to thechange process, has given rise to disputes over the proper ownershipof many properties. Attempting to purchase some of these could trulyopen a can of worms.

1. Find a Real EstateAttorney

It is highly recommended that youenlist the help of a local reputable real estate attorney. Theyshould have little difficulty tracing the history of the property youwish to buy. Also, there are some important legal considerationsindigenous to Nicaragua that you should know about before making anydeals with the locals. A realtor can help save you a lot of time,energy, and legal fees. Only an established attorney has theresources to determine whether or not your property has a cleartitle. Failure to do so will result in legal battles, not somethingthat makes your piece of paradise all that heavenly!

2. Six Property Types toAvoid at All Costs!

I always warn potential buyers to takesome precautions before discussing any land sale and I recommendavoiding some properties all together. Lands with ?Agrarian ReformTitles? or ?Supplemental Titles Issued by Court Order? shouldbe avoided at all costs?these are potential pitfalls as titlerights to these properties are in a state of serious upheaval.

Other properties that should be avoidedare ones confiscated and redistributed under other less-than-cleargovernment ?reforms.? These include any properties that fallunder the following designations:

* Law 85 - distributed luxuryproperties larger than 100 square meters

* Law 86 - distributed smaller homes inpopular neighborhoods

* Law 88 - distributed land to theimpoverished in the name of agrarian reform;

* Law 209 - modification of earlieragrarian reform.

Bear in mind that the term?redistributed? is a nice way to say these lands wereexpropriated by the powers-that-be and forcibly given to those theydeemed more ?favorable? owners. In short, because the trueownership of these properties is in constant doubt, they are notworth the potential agony. Should you secure one, you run theconstant risk of losing it to the original owner, depending ondecisions in a court of appeals.

3. A Government Officethat Will Be Your New BFF

The Property Registry Office is yourbest friend in the investment process. The Office can verify that thetitle and deed of your potential property meet all legalrequirements. It is also recommended that you follow up withneighboring landowners as they may prove an invaluable fountain ofinformation regarding past conflicts or disputes over your potentialproperty.

If you absolutely must have landsecured under that legal conditions stated above, you must secure a'Settlement Statement? from the Territorial Ordinance office(OOT), under the Ministry of Finance, then be sure, as always, thatthis ordinance is logged with the Property Registry office. It?snot a bulletproof way to do the deal, but it sure can spare you a lotof heartache in the end.

When it comes to avoiding real estatepitfalls in Nicaragua, the three tips above are really just the tipof the iceberg. Again, the Nicaraguan market is hotter than ever.Take the time necessary to educate yourself, then jump in to one ofthe most exciting adventures and rewarding experiences of your life ?owning property in this Central American gem.