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

The day arrives for the signing of the public deed of sale and, just when the buyer and seller are ready before the notary, the process is stalled due to a missing document: the certificate of 'paz y salvo' (clearance certificate) for the 'valorización' (betterment) tax. This stumbling block 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 often arrives at the notary with this same type of folder.

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

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

One of the most frequent mistakes when preparing sales documents is assuming that 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 before the notary process.

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

• Different from Property Tax (Impuesto Predial): Property tax is an annual municipal tax on the property. Betterment is a charge for a specific public work with a defined area of influence.
• Different from the Administration Clearance Certificate (Paz y Salvo de Administración): This is issued by the administrator of the gated community or building subject to the Property Horizontal Law 675 and certifies that you are up to date with the ordinary and extraordinary fees of the co-ownership.
• Different from the Financial Clearance Certificate (Paz y Salvo Financiero): If you are looking to clear 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 in DataCrédito and Cifin.
• Different from National Taxes: The National Directorate of Taxes and Customs (DIAN) manages national taxes such as withholding tax on the disposal 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 at the time of sale?

In accordance with notarial and registry regulations in Colombia, to formalize the transfer of real estate through a public deed, the notary must verify that the property is free of liens 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 Notary and Registry; each notary's office specifies 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 document requirements may vary between districts or according to the particularities of the area, so it is always essential to check the list with the notary office where the deed will be granted.

3. From which entity should the betterment clearance certificate be requested?

Given that betterment is a strictly local contribution, the competent entity depends on the municipality where the property is registered with the Superintendence of Notary and Registry:

• Bogotá D.C.: The procedure is formally carried out 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 Procedures and Services Guide). Generally, the property identification number (CHIP) and the property deed registration number are required.
• Medellín: It 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 State's single portal (gov.co) or go to the corresponding departmental finance secretariat.

4. Step by step to request the certificate online or in person

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 Property Registration Folio, 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: Enter 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 have pending betterment levies or you have already paid all assigned installments, the official channel may allow you to generate the certification when that municipality offers a virtual window.
4. Procedure if there are outstanding balances: In case of having overdue installments or active assigned charges, the virtual channel will not issue the final clearance certificate until you have made the full payment or signed a formal payment agreement accepted by the territorial entity.
5. Verify the date of issuance: 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 document package for the signing of 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:

• Purchase and sale promise signed by the parties.
• Citizenship IDs for sellers and buyers (or notarized legal representation powers of attorney).
• Copy of the property's previous public deed.
• Certificate of Tradition and Freedom issued recently by the Superintendence of Notary and Registry.
• Proof of payment for Property Tax (Impuesto Predial) for the current billing period in your municipality.
• Certificate of payment for the betterment contribution (valorización) where applicable.
• Clearance for HOA fees signed by the property manager (if the property is part of a horizontal property regime).

Once the notary process is complete and the title has been registered at the Office of Public Instrument Registration, you must handle the formal deposit of the money from the sale. To understand the banking and fund justification rules for financial institutions, we invite you to review our guide on how to deposit money from the sale of a car or house into your bank account in Colombia.

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

Frequently asked questions

❓ Is the betterment contribution (valorización) clearance 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 city hall. Confirm this on the official page (gov.co source or IDU) consulted during the process.

❓ Is it impossible to sign the deed in any city without the betterment contribution (valorización) clearance?

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

❓ Are the betterment contribution (valorización) clearance and the property tax clearance the same?

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

❓ Can you get the betterment contribution (valorización) 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 visit a service window according to the official site. Avoid click-bait tutorials; open the official site on 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 city hall's official process page or on gov.co (source consulted when filing), not on blogs or through third-party agents.

❓ Is a third-party agent 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 city hall portal and verify that the URL is official (source consulted when processing).

❓ Where do I list the property while I get the paperwork ready?

In a clear housing ad, with photos and price, with no listing commission on Colombia Move. The municipal process remains separate from the ad; the IDU or city hall requirements are not replaced by the classified ad.