How to Request the Valorization Clearance Certificate When Selling a Property in Colombia

The day set for signing the public deed of sale arrives, and just when the buyer and seller are ready in front of the notary, the process is stalled by a missing document: the 'paz y salvo' (clearance certificate) for the 'valorización' (betterment) contribution. This hurdle is more common than it seems among those selling an apartment, house, or lot in Colombia, mainly because it is often confused with other mandatory clearance certificates.

According to active listings on Colombia Move, there are 41 apartment ads and 14 house ads in the housing section; several are for sale, and the seller arrives at the notary's office with this same type of folder.

So that the negotiation does not get stuck at the last minute, here is the territorial procedure: who issues it, how to find the official form, and what to do if a balance appears.

1. What is the betterment contribution and how is it different from other clearance certificates?

One of the most frequent mistakes when preparing sales documents is assuming there is a 'single general clearance certificate.' In Colombian real estate law, each tax or administrative obligation issues its own certification. Confusing them can cost you valuable days during the notary process.

The betterment contribution is a territorial tax or levy (municipal or district) intended to finance road infrastructure or public space projects that increase the value of properties in a given area. It is different from other usual concepts in a sale:

• Different from Property Tax (Impuesto Predial): The 'predial' is an annual municipal tax on property. Betterment is a charge for a specific public work with a defined zone of influence.
• Different from the Administration Clearance (Paz y Salvo de Administración): This is issued by the administrator of a gated community or building subject to Law 675 on Horizontal Property and certifies that you are up to date with the ordinary and extraordinary fees of the co-ownership.
• Different from Financial Clearance (Paz y Salvo Financiero): If you are looking to clean your credit history with credit bureaus due to bank or commercial debts, this is a procedure completely unrelated to the real estate sphere. If you need to resolve negative personal credit reports, consult our guide on financial clearance at DataCrédito and Cifin.
• Different from National Taxes: The National Directorate of Taxes and Customs (DIAN) administers national taxes such as withholding tax on the sale of fixed assets, but it does not issue municipal betterment clearance certificates. That sales withholding is explained separately in the guide on withholding tax on the sale of real estate.

2. Who requires this certificate when selling?

In accordance with notary and registry regulations in Colombia, to formalize the transfer of a property through a public deed, the notary must verify that the property is free of encumbrances that prevent its sale or that the buyer expressly assumes the associated debts according to the contractual agreement. The framework is published by the Superintendence of Notaries and Registry; each notary office defines the package.

Notary offices usually request the betterment contribution clearance certificate in those municipalities or districts where charges for this concept have been decreed and the property is located in the affected area. However, specific documentary requirements may vary between districts or according to the peculiarities of the area, so it is always essential to review the list with the notary office where you will grant the deed.

3. Which entity should you request the betterment clearance certificate from?

Since betterment is a strictly local contribution, the competent entity depends on the municipality where the property is registered at the Superintendence of Notaries and Registry:

• Bogotá D.C.: The procedure is carried out formally through the Urban Development Institute (IDU) or through the District's service window and procedure guides (such as the portal gov.co or the Bogotá Procedure and Services Guide). Generally, the property identification number (CHIP) and the real estate registration number (matrícula inmobiliaria) are required.
• Medellín: This corresponds to the municipal administration, through the Secretariat of Finance or the territorial office assigned to betterment management, according to the form published by the mayor's office at medellin.gov.co.
• Cali: It is managed directly before the Mayor's Office of Santiago de Cali through its finance and territorial tax departments.
• Other municipalities: If the property is in another jurisdiction, you must consult the procedure form on the single state portal (gov.co) or go to the corresponding sectional finance secretariat.

4. Step by step to request the certificate online or at the window

Although the interface and exact requirements change according to the municipality, the general process to issue the betterment clearance certificate follows this management path:

1. Identify property data: Have at hand the Real Estate Registration Folio (Folio de Matrícula Inmobiliaria), the exact address registered in the deeds, and the cadastral identifier (such as the CHIP in the case of Bogotá).
2. Consult the form at the territorial entity: Access the official portal of the mayor's office or the delegated entity (for example, the IDU for properties in Bogotá). Avoid third-party sites or informal managers who promise to process certificates in exchange for unauthorized commissions.
3. Check the account status: If the property does not show unpaid betterment charges or you have already paid all assigned installments, the official channel may allow generating the certification when that municipality offers a virtual window.
4. Procedure if there are outstanding balances: In the event of overdue installments or active assigned charges, the virtual channel will not issue the final clearance certificate until you make the total payment or sign a formal payment agreement accepted by the territorial entity.
5. Check the issue date: Request the certificate close to the signing date at the notary's office and confirm directly with the selected notary how many days of validity they accept for the document.

5. The complete documentary package for signing the deed

The betterment clearance certificate is just one of the pieces to successfully close the sale of your home. To ensure a smooth signing, prepare a physical and digital folder with the following main supporting documents:

• Promise of sale signed by the parties.
• Citizenship ID cards of sellers and buyers (or authenticated legal representation powers of attorney).
• Copy of the previous public deed for the property.
• Certificate of Tradition and Freedom issued recently by the Superintendence of Notary and Registry.
• Property Tax (Impuesto Predial) clearance certificate for the period currently being billed by your municipality.
• Betterment levy (valorización) clearance certificate (where applicable).
• Homeowners association (propiedad horizontal) clearance certificate signed by the administrator (if the property belongs to a condo or gated community).

Once the notary process is completed and the title is registered with the Public Instrument Registry Office, you must manage the formal deposit of the money from the sale. To understand the banking and fund justification rules in financial institutions, we invite you to check our guide on how to deposit money from a car or home sale into your bank account in Colombia.

If you are still looking for a buyer while gathering your paperwork, check out similar ads in the housing section and, if the farm or rural property format is useful for you, the guide on how to list a farm for sale.

Frequently Asked Questions

❓ Is the betterment levy (valorización) clearance certificate issued by the DIAN?

No; it is issued by the municipality or district, not the DIAN. In Bogotá, the channel is the IDU or the District; in Medellín and Cali, it is the mayor's office. Confirm this on the official record (gov.co source or IDU) consulted during the process.

❓ Is it impossible to sign the deed in any city without a betterment levy clearance certificate?

It is not a single national rule. It depends on whether that property has the contribution and what your notary requires. In Bogotá, Medellín, and Cali, it is usually requested when the tax applies; check your notary's list (SNR source).

❓ Is the betterment levy clearance the same as the property tax clearance?

No; they are different documents. The property tax (predial) covers the annual tax on the property; the betterment levy (valorización) covers the contribution for public works. The notary may ask for both, plus the homeowners association clearance if it is part of a horizontal property.

❓ Can you obtain the betterment levy clearance 100% online?

Only if your municipality's official channel allows it and the property is up to date. If there is a balance, you must pay or go in person according to the record. Avoid click-tutorials; open the record the same day (gov.co source).

❓ How much does it cost to request this certificate?

The amount is set by each local entity; there is no national figure here. Read it on your mayor's office official process record or at gov.co (source consulted upon filing), not in blogs or with third-party agents.

❓ Is a third-party agent (gestor) safe?

No; it is not the official channel. The issuer is the municipality or the IDU, not an individual via WhatsApp. Go directly to gov.co or the mayor's office portal and verify that the URL is official (source consulted upon processing).

❓ Where do I list the property while I gather the paperwork?

In a clear housing ad, with photos and price, with no listing commission on Colombia Move. The municipal procedure continues independently of the ad; the IDU or the mayor's office is not replaced by the classified ad.