Buying off-plan in Colombia: risks and how a trust protects you
Buying off-plan can be cheaper, but your money is exposed while the building goes up. Here is how the trust works, the real risks and what to verify before signing.
Equipo Rooted House 6 min read
Buying off-plan means purchasing an apartment or house before it is built and paying in installments while construction moves forward. For many buyers it is a way to get a new home with a comfortable payment plan. It is also the type of purchase in which your money is most exposed, because you are paying for something that does not exist yet. This guide explains how buying off-plan in Colombia works, what role the trust (fiducia) plays, what the real risks are and what to check before you sign.
What buying off-plan means
It is a purchase made while the project is still in design, permitting or construction. Usually you pay a reservation fee, then a down payment spread over several months and, at the end, the balance with a mortgage or your own funds when the home is delivered and the deed is signed.
To see how this fits the full process, read our guide to the steps of buying a home in Colombia and our comparison of new vs. used homes. These articles are in Spanish, and you can always contact us for help in English.
Advantages of buying off-plan
- Flexible payment plan: the down payment is spread over the construction period instead of being paid all at once.
- Room to choose: you can often pick the floor, orientation and sometimes the finishes.
- A new home: on delivery, the protections the law requires for new housing apply.
The real risks
- Delivery delays. Construction can take longer than promised, and you may keep paying rent in the meantime.
- Changes to the project. Areas, finishes or common areas can differ from what the marketing showed.
- The project is never finished. This is the most serious risk: the developer runs into financial trouble or the work stops.
- Poor handling of your money. If your payments go to a developer's account instead of a controlled structure, they are harder to recover.
- Changes in your own situation. If your income changes or the bank declines your loan at the end, you may lose part of what you paid, depending on the contract.
What the trust (fiducia) is and how it protects you
A real estate trust is a structure in which a trust company (sociedad fiduciaria, supervised by Colombia's Financial Superintendency) administers the project's funds. In practice, you sign a trust assignment (encargo fiduciario) and deposit your payments in an account managed by the trust company, not directly with the developer. The trust company must make sure the money is used for its intended purpose and normally releases it only when the project meets the agreed conditions.
What the trust does not do
Do not misunderstand it: a trust does not guarantee that the project will be completed. The developer remains the party mainly responsible for building and delivering. The trust company manages funds; it does not build and does not replace the developer.
A recent case shows this. In June 2026, the Financial Superintendency found a trust company liable for its role in a housing project that stalled, and ordered compensation for the affected buyers, finding that it had not applied sufficient controls over the funds. The trust company announced it will appeal, so the decision is not final. What it makes clear is that trust companies have control and disclosure duties, but also that a claim can take a long time, so preventing problems is far better than claiming afterwards.
What to check before you sign
About the project and the developer
- A valid building permit, and that the project matches what you are being sold. Ask for it and verify the number.
- The developer's track record: previous projects delivered on time and with good quality. If you can, visit one.
- Registration of sales documents. In Bogotá, the District Housing Secretariat (Secretaría Distrital del Hábitat) grants the registration of documents needed to sell housing and reviews the clauses in developers' contracts. Ask whether the project is registered.
About the trust
- The name of the trust company and the number of your assignment. Check with the Financial Superintendency that the company is authorized and supervised.
- Your payments should go to the trust account, never to a personal account or to the developer's own account.
- Release conditions: ask when the money is released to the developer and what happens to your payments if the project does not reach its minimum sales level.
About the contract
- The delivery date and what happens if it is late. There should be a clear date and defined consequences for non-compliance.
- Areas, finishes and common areas described in writing, not only in advertising.
- Penalties if you withdraw. Read how much you lose if you walk away and under what conditions you get your money back.
- How the balance is paid and what happens if the bank does not approve your loan.
When it is time to sign the purchase promise or the deed, read our guide on the purchase promise agreement and keep the closing and registration costs in mind.
The warranty after delivery
Law 1796 of 2016 aims to protect buyers of new housing. Among other measures, it requires the builder or seller to cover serious property damages (such as those related to the stability of the building) that appear within ten years after the technical occupancy certificate is issued, in addition to the legal warranty of the consumer protection statute. Ask how this coverage is backed in the project you are considering.
Frequently asked questions
Is it safe to buy off-plan with a trust?
The trust reduces risk because your money is managed in a controlled way, but it does not remove it. The project can still be delayed or fail because of the developer. That is why you should also check the permit, the developer's track record and the contract.
Who do I pay when buying off-plan?
The recommended practice is to deposit into the trust assignment account in the name of the trust company, following the contract's instructions. Avoid paying personal accounts or paying the developer directly when the structure is a trust.
What happens if the developer is late or the project is never finished?
It depends on what the contract and the trust assignment say. If there are delays, review the non-compliance clauses. If the project stalls, get advice from a lawyer, because each case has different conditions.
Can I withdraw from an off-plan purchase?
Usually yes, but the contract sets the conditions and penalties. Read that clause carefully before signing, because it determines how much you could lose.
Is the trust company liable if the project fails?
Not automatically. Its liability is assessed based on whether it met its control and disclosure duties. There are recent decisions by the Financial Superintendency along those lines, but some are still under appeal.
Want to buy a new home with peace of mind?
At Rooted House we help you review the project, the documents and the terms before you sign. Message us on WhatsApp from our contact page or browse the available properties.
This information is for guidance only and does not replace legal advice. Before signing, review your specific case with a professional.