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Mistakes to Avoid When Buying Costa Rican Property |
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Mistakes to Avoid When Buying Costa Rican Property
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by Paul Marin
- Not Working With Reputable Real Estate Companies /
Developers
 Unfortunately, there is no
licensing body or government regulation of the real estate industry in
Costa Rica, while there are plenty of unscrupulous freelancers who hope
to make huge profits off new buyers naivety.
Big US companies like Remax and Century 21 offer security, but charge
commissions well above what local Costa Rican experts expect. There is
no Multiple Listing Service (MLS) in Costa Rica so working with
knowledgeable locals is ideal.
- Failing to Check All the Paperwork
All Costa Rican property has two documents that must be registered with
the Registro Publico, and all properties need to be
checked there.
The first is the escritura, which is the title document that describes
how the property in words; the second is the catastro map, which is a
topographic map of the property kept on file. One problem that commonly
arises is that the "escritura" may not correspond with either the
catastro or a physical survey of the property.
Such a discrepancy is due to the fact that when a transfer of property
takes place, the transaction may not have been recorded on the
catastro, since a change in one does not automatically require a change
in the other.
It should also not be assumed that the catastro map accurately depicts
the property itself. It is therefore often necessary that an
independent topographical study be conducted in order to verify the
property boundaries. Any discrepancies within the two legal documents
and the land itself must be resolved before purchasing.
Always obtain a copy of the tax receipt (impuesto territorial) proving
that all taxes and registration fees are paid as of the date of
purchase, and to negotiate in the contract sufficient funds to pay all
necessary taxes and registration fees, including notary fees.
Remember also that the first 50 meters in from the coast are public
beaches on which absolutely no construction may take place or any
concession be granted. The remaining 150 meters may be developed via
special "concessions" that are granted by the governing municipality.
All legal and paperwork issues can be taken care of for you if you
purchase from a reliable developer, like Adriana
Marin in Cartago.
- Leaving Your Property Uncared For
 If it's
obvious that your Costa Rican home has been unoccupied for a long time,
robbery becomes a concern. Also, in less developed areas, squatters
might take up residence on your land, and while it's your legal right
to have them removed, legal protections make it very difficult and
time-consuming to do so.
The first phase is the eviction of squatters during the first three
months of occupation. Theoretically, one need only alert the local
police, who are then obliged to evict the squatters. The second phase
is after the initial three months of occupation but before one year. If
squatters are "allowed" to squat on property for this duration of time,
one must go to the courts and start the lengthy process of
"administrative eviction."
A permanent caretaker can protect your property against both theft and
squatter problems. Another option is to purchase property in a good
subdivision, or residential in Spanish.
Our MonteAltoRealEstate in Cartago is a great example.
- Isolating Yourself
With so many friendly people and ex pat and local interest groups
around, it seems hard to believe that people in Costa Rica could get
too lonely.
However, the stress that comes from moving to a new country can be
worse if you don't speak Spanish, don't make an effort to get to know
new people, or live in an area far away from other ex pats and from the
cosmopolitan central valley.
We recommend you stay up-to-date by checking out media that caters to
the English-speaking community here, like:
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