Costa Rica Tourism and Retirement Guide
Buying Real Estate
ownership
Foreigners, with or without residence, have the same ownership rights as Costa Rican citizens.
before you get close to buying
Have a word with the neighbors. This is especially important in rural areas and when it concerns large tracts of land. Ask them what they think of the property. Often you will get information on problems and an opinion about the price. The things you may find out here are important things your lawyer cannot find for you such as:
border disputes
problems with
squatters
problems with water or electricity
destination plans
before you buy
Find out the number of the property, número de finca. With this number you or your lawyer can look up the property in the National Registry, the Registro Nacional. If there are any liens, restrictions and pending legal actions they will be listed. To find out the exact nature of the problems your lawyer will have to visit the Registro Nacional in person. The lawyer will also look at the plan, the plano catastrado. Keep in mind that only the encumbrances of the property itself can be checked. If you buy a corporation that holds the property it is impossible to check if the corporation has debts or lawsuits going on. So, remember that if you buy a corporation you also inherit its problems if there are any. I noticed that will be rarely pointed out to you by a lawyer. The plus of buying a corporation is that the closing costs will be considerably less.
title insurance and escrow
There is no legal system for escrow in Costa Rica. Usually the buyer's lawyer holds the money if necessary. If you want more peace of mind you can buy title insurance, legal and escrow services from Stewart Title Company.
buying
The negotiations should include an agreement about who pays the closing costs. Customary in Costa Rica is to share the costs. Also according to custom, if you pay cash, you can choose the attorney. If it is financed 50%, both attorneys sign off or the buyer's does the deed and the seller's the mortgage . If it is mostly financed the seller's attorney gets the job. The seller should present proof that all the municipal taxes are paid.
At the point of the actual sale the lawyer is doing all the work. Your job is to make sure that all the numbers and names in the documents are correct. The attorney supervises the signing over and then transfers the deed in the registry.
after the sale
About a month later the attorney will have the new deed for you. You can also request a new plan at the time of the sale or at any time later on.