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How To Buy Real Estate In Costa Rica

Investing in a property in Costa Rica, or any foreign country for that matter can be very intimidating for the buyer due only to their lack of knowledge of the legal system, government regulations and local customs of Costa Rica. Most of our agents have been born here or have been living in Costa Rica for a very long time. Based on that first hand experience, we have found that having security in such transactions boils down to the following 2 common sense recommendations... 

1) Select a Reputable Real Estate Company

Commissioning a reputable, well-known and respected Costa Rica real estate company with a long, clean track record will go a long way to ensuring that the property they purchase fits their needs and is in an area of the country that suits their lifestyle. A seasoned real estate professional will also make sure the buyer avoids the most obvious pitfalls of purchasing property such as avoiding shady developers, or wasting time considering properties without clean title or that have a checkered history regarding land usage, or ecological considerations, which are always matters of utmost concern to the very eco-conscious Costa Rica community. Our MLS and Member Real Estate companies, take great effort to ensure that properties are free of such complications. 

2) Select a Reputable Attorney

Perhaps, the most important thing you can do is engage a reputable, well-known and respected Costa Rica attorney with a long standing, clean track record to guide you through the purchasing process - from deposit, through closing, to obtaining title. Each transaction may require a specific attorney, for instance, one more suited to development land, or one who understands concession land better than most. Our certified agents know the right lawyers to refer you to. And of course, the buyer is always free to appoint their own attorney based on their own research or recommendations. Having a solid attorney on your side means that you don't personally have to know the procedures, details, inner workings and otherwise, all aspects of purchasing real estate in Costa Rica to ensure a safe transaction.

"...leaving the whole transaction experience to be otherwise relaxed and uneventful."

Also, Costa Rica has one of the best public registries found anywhere in the Americas, ensuring the property you are considering has no liens or encumbrances on it with titles and permits in order, all skeletons revealed and above the table before any money changes hands...

Some may consider this as an overly simplistic solution to what most see as a complex hurdle when investing off shore, but our experience has shown us that virtually every client that followed those 2 simple recommendations, were never taken advantage of, and they all had pleasant shopping and purchasing experiences. And this is always a good way to start when relocating to a foreign country. 

For The Do-It-Yourselfer's

"Though commendable and brave, it's still very much discouraged"

Still, some investors who have a more hands-on disposition, and those with experience in such transactions may choose to do their own research and conduct their own business. Though I personally see that as commendable and very brave, I will always strongly discourage it. Those that are realtors or mortgage specialists in their home land need to understand that things are done differently here, as is generally the case in all foreign countries, and it’s imperative that you protect your investment by aligning yourself with the right support team to ensure security. Of course, doing your homework and being prepared is never a bad thing, but circumventing either of the aforementioned 2 recommendations, we feel, is the last thing you want to do. 

What NOT To Do

"Do NOT work directly with developers or sellers without legal representation ."

There are enough problems to overcome in most real estate transactions no matter what country you are in. Those that see fit to acting on your own and dealing directly with sellers and developers greatly increases the chances for legal issues and is foolhardy at best, to put it kindly.

Buyers of Costa Rica real estate often get too close to the project owners which results in inflated confidence in the developers standard purchase contract. This, combined with the prospect of saving a couple thousand dollars in legal fees, will often encourage buyers to eschew this imperative step. In our experience, we have never seen a developer's contract that didn't require alterations of some kind. That's not to say that developers, in general are mean spirited or can't be trusted, it's only to say that without your attorney's input, they buyer's needs are often overlooked in the developer's standard contract.

This is why it's imperative that you have a legal professional acting in your best interest only. One with intimate knowledge of local laws and regulations of real estate transactions. Something like this will not likely cost you more than $500 and in the grand scheme of things, a small investment to avert potential disaster.