How to buy property in Costa Rica

How to buy property in Costa Rica

How to buy property in Costa Rica

Buying Real Estate in Costa Rica: What you should know before making a purchase

With people from all over the globe flocking to Costa Rica, many are taking advantage of the attractive deals available on properties throughout the country. Costa Rica has many properties available including houses, condominiums, time-shares, farms, finished lots and beachfront property.

If you are considering buying real estate in this beautiful Central American country, there are a number of things you should know before you get started on your search.

First, do a title search in the "Folio Real," a centralized system at the Public Registry in San Jos that lists nearly every property for sale in Costa Rica. It will give you all the information you need, including a property's area, ownership, boundaries, mortgages and other liens. Properties not yet entered into the "Folio Real" system are still registered in other systems at the Public Registry and information on them can be accessed.

Potential property buyers will want to know whether they are buying ownership rights (derecho de propiedad) or occupation rights ("derechos de ocupacin"). Ownership rights are for registered properties. This form of property purchase is quite similar to owning land in the United States or Canada. Conversely, occupation rights would involve properties that have not been registered and cannot be title-searched. The process of registering them can be a lengthy one.

And beachfront buyers will want to find out if the property is affected by a concession, in which the government gives you the right to the land for a specific period of time, like a lease. The registration system for concession properties is different than the one for regular land.

Just like buying property in many other countries, there are a number of steps buyers should take before beginning their search for the perfect parcel of land, whether it's for residence, vacation or investment.

A few other important things potential real estate purchasers should note are closing costs are 1.5 per cent of the purchase price, and taxes are 0.25 per cent of the declared value of the property.

Buyers should also consider purchasing property through a Costa Rican SA Corporation, as this gives the buyer limited liability in case of a law suit.

Escrow money should be held with Stewart Title of Costa Rica and title insurance should be purchased as well.

For more information please contact the law offices of Barrantes & Associates, a full service Costa Rican Law Firm located in San Jose since 1999, at info@lawyerofcostarica.com or by calling 011 506 2 256 3807.

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