Thursday, 29 October 2020

Purchasing Property in Costa Rica

Purchasing property in Costa Rica requires a higher level of due diligence in order to avoid the pitfalls that are presented. A Purchaser requires the assistance of both a skilled Realtor and Attorney/Notary, in order that the proper inquiry is made prior to any Purchase Agreement being entered into.


Photo courtesy First Realty CRE

As Realtors are not licensed, or regulated by the Government in Costa Rica, it is particularly important that a Purchaser do their due diligence of the Realtor that they choose. There are many good Realtors in Costa Rica, but it is important to choose both a competent Realtor and a Realtor who is knowledgeable in the area of Costa Rica where you intend to buy. No MLS system exists in Costa Rica and the knowledge of listings in a particular area are usually only those personally known to the Realtor that you choose.

- Advertisement -

Although Attorneys and Notaries are licensed and regulated by their professional bodies, it is equally important to choose an Attorney/Notary who specializes in property purchases. Following the initial negotiations to establish the price and a closing date for the purchase transaction with the Seller, the Attorney/Notary acting for the Purchaser, will prepare the Purchase Agreement setting-out the terms of sale.

The Purchaser and Seller will sign this Agreement and the Purchaser will usually pay into escrow with their Attorney/Notary, a deposit of approximately ten percent of the purchase price, to be held subject to various specified contingencies being satisfied, following which the deposit would become firm and non-refundable to the Purchaser.


Photo courtesy First Realty CRE

When purchasing an existing house, or condominium which has been constructed and the property has a registered title in the National Registry, the Attorney/Notary will conduct a Title Search of the property in the National Registry to determine if there are any liens, or other annotations on the property, such as mortgages, which need to be cleared from the tile at closing. In addition, a review of the property Survey Plan will be made. If the Survey Plan exceeds ten years from the date of issue, it is advisable to have a Land Surveyor conduct a check of the property boundaries to determine if there are any irregularities such as encroachments.

- Advertisement -

When purchasing raw land for building, it is particularly important that the Attorney/Notary conduct additional due diligence, such as obtaining a copy of a Land Use Permit (Uso de Suelo) from the applicable municipality to determine the use to which the land is zoned and to insure that appropriate access to the property may be made from a public road, or that an easement exists connecting the property to a public road. Depending on the type of development being considered, inquires may have to be made of the Government Environmental Agency (SETENA), the Government Housing.

Original article by Rick Philps (rphilps@plawcr.com)
Source: Solutions Costa Rica

 

 

- Advertisement -
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

La Niña is back and will bring storms, drought and bad weather

QCOSTARICA - The La Niña climate phenomenon has developed and is...

Done deal, 2021 Marchamo rebate firmed up

QCOSTARICA - Congress approved this Thursday afternoon, in second and final...

MOST READ

Vatican awaits debate on secular state before granting legislator audience with the Pope

QCOSTARICA - The Vatican will wait for the Legislative Assembly to begin the discussion of the secular state before giving Costa Rica legislators an...

With the dollar rising, should I transfer my loan or my savings from the currency?

QCOSTARICA - The change in the exchange rate of the dollar against the colon is an aspect that causes many concerns and nervousness, not...

Gasoline prices will be cheaper on Wednesday

QCOSTARICA - On Wednesday, October 28, the lower fuel prices for Super, Plus 91 and Diesel fuel will go into effect. Prices at the pumps...

COVID-19 in Costa Rica: 1,372 new cases and 30 deaths for Sunday and Monday

QCOSTARICA - The report Monday by the Ministry of Health detailed 1,372 new cases for 48 hours from Saturday to Monday, for a total...

La Niña is back and will bring storms, drought and bad weather

QCOSTARICA - The La Niña climate phenomenon has developed and is expected to last into next year, affecting temperatures, precipitation and storm patterns in...

Congress approves reduction in 2021 Marchamo

QCOSTARICA - As had been expected, Congress approved on Tuesday night the bill to reduce the property tax of vehicles of the 2021 Marchamo. By...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.