Buying Costa Rican Properties For Dummies (and for anybody that wants to do it the right way)

Buying Real Estate in Costa Rica
What you need to know when buying real estate in Costa Rica

Step 1

It’s suitable to contact a reputable Costa Rica real estate agent, in order to identify a Costa Rican property of your interest from a listing that the broker has to offer. Once you have chosen the land, verify every fact related to the property you intend to buy, with the guidance of your Costa Rican attorney at law.IMPORTANT: There’s no mandatory regulation about Costa Rican real estate agents, so there are no legal requirements to be a broker, however, as a buyer, you should pay attention to recommendations. Also, Costa Rica real estate agents usually work closely with sellers.

Step 2

Conduct an initial title search in the Costa Rica Public Registry, to make sure who is the legally registered owner of the Costa Rica property, and to find out if there are any liens or encumbrances affecting the Costa Rica real estate title. For this purposes, the seller should provide the full name of the registered owner as well as the Costa Rica property title number.

Step 3

The seller should also provide a copy of the survey map for the Costa Rica property. A survey map is prepared by a surveyor, and certifies that the property has complied with the standards of form and accuracy, and should contain the stamp of the Costa Rica Catastro Nacional, including also the registration number. This way, the person interested in buying Costa Rica real estate can verify and recognize the boundaries of the property. Likewise, a reference of the survey map is a requirement in the transfer deed, in order for the Costa Rica Public Registry to allow it.

Step 4

After the Costa Rica title search and the inspections requested, the buyer or their Costa Rica real estate agent will provide a purchase offer and an earnest money deposit to the seller, which will set forth the terms of the offer. Once it is accepted, the transfer of the title comes next.
There may be cases when the buyer and the seller need a longer period of time before closing with your Costa Rican attorney at law or more specifically in this case Costa Rica Public Notary. In these situations, there are two solutions:
• An Option (Opcion de Compra)
• Reciprocal Promise to Buy and Sell (Promesa Reciproca de Compra-Venta)
Step 5
Real Estate in Costa Rica is transferred from seller to buyer by a transfer deed called Escritura de Traspaso, before a Costa Rican Notary Public (in Costa Rica in order to be invested as a Notary Public it is required to be a lawyer and specialize in Notarial Law as the Costa Rican Government appoints them as Public officers who take care of this matters exclusively) , who drafts, authenticates and certifies the documents.
At closing, the seller must assure the buyer that he is current with the property tax payments and municipal assessments.

Step 6

Generally both parties share the closing costs, which include: Real Estate transfer tax (1.5% of the registered value of the property), Documentary Stamps (affixed to the deed), Notary Fees.

Step 7

The Costa Rican Notary presents the deed in the Costa Rica Public Registry, in order to be registered. In this aspect we strongly encourage investors to receive legal professional advice to determine if in a case by case basis if the regulatory advantages of acquiring Costa Rican properties through a Costa Rican corporation is desired.