Promesa de Compraventa: buying or selling property

To put it in simple terms: the promise agreement is the legal handshake that "closes" the deal. It is the contract that binds the transaction, freezing the agreed-upon conditions so that neither party backs out while the final legal procedures are prepared.

Here we clearly explain how it works, what its rules are, and what you should take into account, especially if you are a foreign buyer.

1. In Simple Terms: What Is the Purpose of the Purchase and Sale Promise Agreement?

Imagine the promise agreement as a bridge between your decision to buy and the day the property officially passes into your name (the signing of the Public Deed or Escritura Pública).

It is an "Obligation to Act" (Obligación de Hacer): Legally, you are not buying the property just yet; you are legally binding yourself to sign the definitive contract on an exact date and time.

It makes the deal legally enforceable before a judge: If you signed the promise agreement and the other party defaults (for example, the seller decides not to sell or fails to deliver on time), the promise agreement gives you the legal standing to go to court to demand enforcement of the contract or the payment of the corresponding indemnifications.

It includes a Penalty Clause (Cláusula Penal): By law and commercial custom, promise agreements include a financial penalty (usually between 10% and 20% of the total value) if either party backs out or defaults on what was agreed upon.

2. What You Should Know If You Are a Foreign Buyer 🇨🇴🇺🇸

Buying real estate in Colombia from abroad or as a foreigner is entirely viable and safe, but it requires refining certain details within the promise agreement:

A. Exchange Rate and Payments in USD (or Foreign Currencies) In Colombia, the legal currency for drafting the Public Deed (Escritura Pública) is the Colombian Peso (COP). However, in the Purchase and Sale Promise Agreement, it is possible to agree on the price or installments in US Dollars (USD) or fix a reference exchange rate (TRM) to provide peace of mind to both parties regarding currency volatility. (Capital M Tip: The conversion rule and the authorized receiving bank must always be specified under the foreign exchange regulations of the Banco de la República).

B. Grace Period for Cross-Border Payments International bank transfers (via SWIFT/Wire Transfer), opening local accounts, or registering direct foreign investment with the Banco de la República can take more days than expected. It is an excellent practice to include a grace period (for example, 5 to 10 business days) for compliance with payment dates without triggering automatic penalties.

C. Is It Mandatory to Sign at a Notary Office? (Digital Signature vs. Notarized Signature) There is a myth that a promise agreement is invalid if it is not notarized at a Colombian notary office. This is false.

In Colombia, the promise agreement must be in writing, but e-commerce laws (Law 527 of 1999) grant total validity and binding force to electronic and digital signatures. If you are outside the country, you can validly sign through secure digital platforms (such as Adobe Sign, DocuSign, etc.) without needing to visit a consulate or notary, provided that the signature guarantees authenticity and integrity. Many people choose the notary out of habit or a sense of security, but legally, a virtual signature is 100% valid.