Published and draft legislation - Colombia

New Rules for the Filing of Real-Estate Collateral

Decree 1835/2015 amending Decree 1074/2015 and setting forth further provisions

The Colombian government enacted Decree 1835/2015 to provide greater clarity regarding the filing of real-estate collateral as a way of making it easier for small and medium-sized enterprises and entrepreneurs to access funding. The new regulations include:

  • A glossary of the terms applicable to the filing of real-estate collateral, such as borrower, guaranteed, online file, registry form, etc.
  • Greater clarity about how the real-estate collateral registry works, allocating serial numbers, providing certificates and copies of filing documents, etc.
  • Round-the–clock, open access to the real-estate collateral registry (24/7).
  • Definition of he requirements for filing real-estate collateral in the system. Filers must create a username, and pay the registration rights and the certification of the form.
  • Definition of the term during which the collateral guarantee will remain in force.
  • Minimum information to be provided to the system for filing real-estate collateral.

A more simple system for filing real-estate collateral

The decree clears up queries from the market about the application of Real-Estate Collateral Law 1676/2013, analysed in Progreso 1, as the system can only be effective if people find it easy to use and actively file their collateral in the registry it created.

Once the filing system works correctly, more people and small businesses will be able to use their real-estate as collateral to obtain credit. This should encourage entrepreneurs to take advantage of more financial opportunities in the country.

In Progreso 1, we also commented the new rules regarding the mortgaging of movable assets in Panama and Peru.