Central America seeks a single mortgage
In 2005, an initiative began in Central America that seeks to create a uniform mortgage for Central America and Panama, an effort that supports the strengthening of Real Property rights. This is being done through the Regional Real Estate Council of Central America and Panama, CRICAP
In different countries of Central America there are projects in execution, mostly supported by the World Bank and IDB, that seek to modernize the registers of real property and land management institutions, including Cadastre. Although they go through different stages of implementation (and perversion :)), in the end they all seek the reactivation of economic capital by strengthening legal security in land tenure.
Among others, these would be the main benefits:
- Improves the conditions of Legal Security for real estate investment in the region, having procedures for the constitution, registration and execution of uniform mortgages.
- Facilitate and expand access to credit, being able to be backed with mortgage guarantees located in any of the countries of the region.
- Promote capital movements through the securitization of regional mortgage portfolios.
- Strengthen the economic and social integration of the region.
Although the project is multi-phase, the initiative is important and challenging, because beyond modifications to the regulations and development of computer applications implies:
The modernization of the institutions of both cadastre and property registration, the compatibility of nomenclatures and procedures, integration of private banks into the process and, above all, the adaptation of the legal framework to strengthen the imbalances that exist between the career of public official and the technical sustainability of this type of projects.
