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Real Estate for Sale in Costa Rica

A Ounce of Insight on Purchasing Costa Rica Real Estate
Is Worth a Truck Load of Hind Sight

LEARN BEFORE YOU LOOK

The process involved in purchasing real estate in Costa Rica is neither difficult or onerous if you prepare for the process in advance and become familiar with the basic information before actually starting negotitions on a real estate purchase. As you prepare, bear in mind that you are no longer in your home country and the process and foreign laws and regulations related to acquiring real estate in Costa Rica, or any other foreign country, can overwhelm the unprepared purchaser.

There are four main points every buyer they should do before starting to actually look for Costa Rica real estate:

1. Read this article and any others you can find on on the internet about the real estate transfer process in Costa Rica;

2. Hire a good Costa Rica attorney well versed in the process of land transfers. I even caught our attorney in a serious error at closing a not long ago, so always question any matter that you do not fully understand in advance of making an offer on a property. Consult with your real estate broker on all matters. Most brokers attend more closings than the attorneys do.

3. Read some MORE articles on purchasing real estate in Costa Rica.

4. Find a realtor with whom you feel comfortable and stick with them. DO NOT jump between realtors once you establish a comfort level with one in the area you are considering.

The prime thing working in your favor is the process of purchasing real estate in Costa Rica is well defined and an informed buyer will be aware of the process before looking for real estate or property for sale in Costa Rica.

Hire a Good Attorney good real estate attorney (we can recommend one or two) to check and the records of any property in which you may have an interest. Delaying this proces can cost you weeks if a property fails to pass a records check. Have him make sure everything is in order to assure there are no problems could affect the transfer of the property. It is not unusual for real estate for sale in Costa Rica have clouds on the title due to unrecorded transfers, squatter rights, lack of title, ownership through possession, missing or non-existant documents. Check each and every property before making an offer, it will probably save hours of frustration.

Select a professional broker specializing in Real Estate for Sale in Costa Rica. Real Estate for Sale scams in Costa Rica are very common as are shady realtors. Lack of regulation here is an open door for fraud and ending up with a "Bar Room Broker" or one of the hundreds of unprofession, fast talking, hype artist or other scam artists that plague our industry will only bite you in the backside as the process sours. Bear in mind, very few real estate brokers or agents in Costa Rica have any formal training and there are no formal licensing requirements for realtors. Insist on character references and business references and check them. For more information on realtor qualifications in Costa Rica read my article at Selecting a Costa Rica Real Estate Agent.

A large percentage of prospective real estate buyers arrive here set on purchasing oceanfront or beach front property along the Pacific Coast in towns such as Golfito, Jaco, Tamarindo, Quepos, Dominical, Playa Zancudo, Pilon, Palma Norte, Drake Bay and Pavones without any understanding or knowledge of Costa Rica's Maritime Zone Law 6043, which I have translated and recreated and made available on this site. If you do not mind a lot of reading quickly scan through most of it, but study the sections related to "Oceanfront Real Estate" in detail if you are considering beach front property. As a second choice I have briefly stated the facts regarding the ownership / occupation of Costa Rica beachfront property below.

Any potential buyer of oceanfront or beach front real estate in Costa Rica needs to fully understand land in the Maritime Zone (Oceanfront and beach property not previously titled) can no longer be purchased or titled in Costa Rica. Maritime property, with very few exceptions, can only be leased from the local municipality. Once again, I want to stresss the fact, you CAN NOT, in most cases, own or acquire title to property ajoining the ocean or beachfront.Some titled Maritime property does exist, but be extremely wary of anyone claiming to have titled oceanfront or beach front property for sale.

Blunty put, in most cases, beach and oceanfront property in Costa Rica is NOT for sale, rather, the person holding the property is only selling their rights to have, hold, use, posses, lease, or transfer their interest is such property (if he even has these rights). Each parcel of oceanfront real estate has its own criteria, paperwork, lease agreements, or possibly concessions. Where each parcel stands in this process is the controlling factor driving the asking price of land in the maritime zone.

Costa Rica law also clearly states foreigners CAN NOT lease or posses Maritime Zone property. This can be worked around by purchasing the land and holding it in a Costa Rica Corporation. If your interest, as was ours, is in oceanfront prperty be sure you, your real estate agent, and your attorney have a lengthy conversation regarding the procedures of forming the corporation and the ownership of said corporation prior to proceeding. I personally discuss this with any client prior to showing them oceanfront property anywhere in Costa Rica. Another possible option is to purchase the established Corporation currently controlling the property. This is not my recommendation without a full study of the existing ownership of the Corporation prior to entertaining this option. The big advantage is the existing could have already started the concession process, thereby reducing the workload related to the full or partial leasing process. The drawback is you also purcahse all of the liabilities and possible bad paperwork associated with the previous transactions. The ideal situation is to purchase a Costa Rica Corporation which has already been approved by the local municipality and has been issued a "use permit" or concession. Use Permits on Playa Zancudo are not that unusual but completed concessions are extremely rare.