Buy Costa Rica Real Estate

Now that you are ready to buy Costa Rica real estate the next process begins. Hopefully this article will help you understand the final process to buy your Costa Rica Real Estate.

The Title Check

We suggest using Stewart Title to perform a title check

before you buy Costa Rica real estate. A title report on the property you wish to buy should provide the following information on the real estate you are considering.

   ¤ The Tile Holder's Name

   ¤ Other recorded instruments that could affecting a title opinion

   ¤ Property plats or maps

   ¤ Any recorded mortgages or liens

   ¤ A current tax appraisal

Transfer of Title

When you buy titled Costa Rica real estate the transfer between the buyer and seller by be by deed (escritura). This process must be executing in the presence of an Attorney, who is also a Notary

Public.

If the real estate is Maritime property the buyer and seller must mutually have an Attorney prepare a transfer deed and register the transaction in the Public Registry. You should receive a copy

of these documents and a copy of the records must also be retained in the attorney's office.

The choice of attorneys is usually dictated by how you agree to buy Costa Rica real estate.    ¤ If are not financing the property you have the right to pick the Attorney to transact

the sale.

   ¤ If the seller is financing 50% or more of the sale, he has the right to select the Attorney.

   ¤ If the seller is financing less than 50% of the sale he may request that his Attorney also prepares a sales document. However, this will  drastically increase the cost of the

sale transaction due to additional registration fees.

Who Pays the Closing Costs when you buy Costa Rica real estate

The buyer and seller will usually equally share the closing costs. DO NOT do as I did. I failed to obtain a written agreement stating this understanding. At closing the seller refused to

share any part of the closing costs. Leaving me two options, pay 100% of the costs or stop the buy. I ended up paying all legal fees, government transfer fees and taxes.

Government Fees

   ¤ Real Estate Transfer Tax of 1.5% of the registered value of the property.

   ¤ Documentary Stamps

      ¤ Public Registry tax of .05% on documents

      ¤ Notary Fees based on the actual sales price

      ¤ 2% of the first 10 million Colones PLUS

      ¤ 1.5% of the excess up to 15 million Colones PLUS

      ¤ 1.25% of the excess up to 30 million Colones PLUS

      ¤ 1% of the excess over 30 million Colones

These are the minimum fees that may be charged by the Notary. Under certain circumstances (with client approval) the notory may charge more.

The Process of Building

Costa Rica law requires that all applications for a building permit be submitted by a licensed Costa Rica architect or engineer, so do NOT attempt the process until you establish a relationship

with a licensed architect or civil engineer to take you through the entire.

Architect and Engineering Fees

The Costa Rican Association of Engineers and Architects establishes the allowable fees that can be charged. As a rule these fees will be based on a the value of the construction as follows:

   ¤ Preliminary studies 0.5%

   ¤ Preproject design 1.0 to 1.5%

   ¤ Construction plans and technical specifications 4.0%

   ¤ Prepare a materials and construction budget 0.5 to 1.0%

   ¤ Weekly construction and project supervision 3%

   ¤ Day-to-day supervision of the project 5%

   ¤ Total execution and completion of the project 12%

You select the options you need based on skills of your building contractor, and the amount of time you are willing to put into the project.

Obtaining Construction Permits

Construction permit applications must be filed with the Permit Reception Office which is the centralized office housing several government officials responsible for transportation, housing,

electric and telephone, water services, health and engineering.

If you are planning to construct a single family home larger than 735 square feet you will have to provide the following documents:

   ¤ Four copies of the construction plans

   ¤ Four copies of the property cadastre plot plan

   ¤ Four copies of the permit checklist

   ¤ Two copies of your property deed

   ¤ One copy of the contract with your architect

   ¤ The approval from the water company

   ¤ One copy of your approved electrical design plan

In addition, you will need a building permit from the municipality