Tuesday 22 June 2021

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 -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

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

Today’s Covid News: Less than 800 new cases for the first time in two months

QCOSTARICA - For the first time in two months, less than...

First five months of the year reflect recovery of Costa Rican exports

QCOSTARICA - The value of Costa Rica exports increased by 23%...

MOST READ

Carlos Alvarado: “Don Rodolfo has my confidence”

QCOSTARICA - President Carlos Alvarado said he has all the confidence in his Minister of Public Works and Transport (MOPT, Rodolfo Méndez Mata, and...

New trends in coffee consumption challenge sector

QCOSTARICA - Changes in consumption habits in terms of times, types of preparation and specialties challenge the coffee sector. Most of the consumers in Costa...

Vaccination commission endorses J & J vaccine, says no to Sinovac

QCOSTARICA - The Comisión Nacional de Vacunación y Epidemiología (CNVE)  - National Vaccination and Epidemiology Commission - endorsed the use of Johnson and Johnson...

Germany opens borders to Ticos from this Friday!

QCOSTARICA - Good news for Ticos with traveling fever! From Friday, June 25, Germany will allow entry of travelers from Costa Rica as long...

Today’s Vehicle Restriction June 20: only “EVENS” can circulate

Today, Sunday, June 20, only vehicles with "EVEN" ending plates CAN circulate The measure is countrywide and applied between 5:00 am and 9:00 pm, save...

Nathalie Álvarez Mesén’s feature debut, Clara Sola, ready for the Cannes Directors’ Fortnight

Q ENTERTAINMENT (CINEUROPA) Nathalie Álvarez Mesén’s debut feature, Clara Sola, is ready to take part in this year’s Directors’ Fortnight at the Cannes Film...

“Caso Cochinilla”: Name arose when comparing parasite with hidden corruption

QCOSTARICA - On Monday, the Organismo de Investigacion Judicial (OIJ) moved to the raid, seize and arrest of their investigation into corruption of public...

The United States will distribute 55 million vaccines against Covid-19 in Latin America, Africa and Asia

QCOSTARICA - The United States presented on Monday a plan to share 55 million doses of coronavirus vaccines worldwide, with approximately 75% of the...

College of Physicians negotiates donation of a million and a half vaccines against covid-19

QCOSTARICA - This week there could be very good news for the country in the fight against the coronavirus pandemic if the College of...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

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.