Guide · Fraud prevention

Common real estate scams in Medellín and how to spot them

Updated September 2026 · By Alfredo Jaramillo, attorney · T.P. 93906

Foreigners are a target in the Medellín property market for one simple reason: they usually cannot read a Colombian title certificate, they do not know how a legitimate closing works, and they are often in a hurry. Attorney Alfredo Jaramillo has spent more than 35 years in criminal law. These are the schemes he sees most often, and the signals that give them away.

1. The seller who is not the owner

Someone shows you an apartment, has keys, has photos, and has a story. The public record says the property belongs to someone else. Variations include a relative "selling on behalf" of the owner, an expired or forged power of attorney, or a tenant posing as the owner.

How to spot it: ask for a title certificate (certificado de tradición y libertad) issued within the last few days and compare the registered owner with the ID of the person signing. If they do not match exactly, stop.

2. The property with hidden debts or embargoes

The deal looks clean, the price is fair, and after you pay you discover a mortgage, a court embargo or years of unpaid property tax and building fees. In Colombia many of these debts follow the property, so they become your problem.

How to spot it: the same title certificate lists mortgages and embargoes. Property tax, building administration and utilities each require their own paid up certificate (paz y salvo). No certificate, no payment.

3. The pre construction project that never finishes

Off plan sales are legal and common. The scam version is a developer or an intermediary who collects deposits for a project that is not licensed, not funded, or not theirs. Sometimes the same unit is sold to several buyers.

How to spot it: ask for the building license (licencia de construcción), the trust agreement (fiducia) that holds buyer money, and the registration of the developer. A serious project channels every payment through a fiduciary account, never to a personal account.

4. The deposit paid to the wrong person

You agree on a price, the "agent" asks for a reservation deposit to take the unit off the market, and the money goes to an individual by transfer or in cash. Then the agent disappears, or the owner never authorized any sale.

How to spot it: a deposit is paid only under a signed promise of sale (promesa de compraventa) with the verified owner, to an account that belongs to that owner or to a fiduciary. Never to an intermediary. Never in cash.

5. The fake or "shared" real estate agent

Anyone can call themselves a real estate agent in Colombia. Some are excellent. Some invent listings, copy photos from other portals, or work both sides of the deal while telling you they represent you.

How to spot it: an agent who resists your bringing an independent lawyer, who pressures you to sign today, or who cannot show the owner's ID and the title certificate is not working for you.

6. The rental that does not exist

For foreigners arriving to Medellín, the most common loss is smaller but very frequent: a furnished apartment in El Poblado or Laureles advertised online, a deposit sent from abroad to "hold it", and an address that turns out to be someone else's home.

How to spot it: never send money for a rental you have not seen in person or through a trusted local contact. Ask for the owner's ID, a copy of the title or the administration certificate, and pay against a signed lease.

7. The money laundering trap

This one is different because the foreigner is not the victim of a theft. The foreigner is used. A seller offers a property below market if you pay part in cash, or asks you to accept funds from a third party, or proposes to declare a lower price in the deed. Any of these can expose you to criminal liability and to asset forfeiture (extinción de dominio), where the State takes the property.

How to spot it: any proposal to pay in cash, split payments across unrelated accounts, or under declare the price is a reason to walk away. A criminal defense attorney sees the consequences of these arrangements every week.

The pattern behind all of them

Almost every scheme depends on the same three things: the buyer does not verify the owner, the buyer pays before the documents are checked, and the buyer trusts the person who benefits from the sale. Removing those three habits removes most of the risk.

What to do if it already happened

If you have paid and suspect fraud, act quickly. Gather every document, message and payment record. In Colombia a criminal complaint (denuncia) can be filed with the Fiscalía, and in some cases funds can be traced and recovered if the process starts early. Attorney Alfredo Jaramillo handles these cases from the criminal side and can tell you honestly, in English, what is recoverable and what is not.

This guide is general information and not legal advice for a specific case.