Buying Costa Rica Real Estate    

   Osa Pacific Properties / South Costa Rica / Osa Peninsula Real Estate                  

The  real estate tax rate is .025% of the properties recorded value. Closing costs consist of the following fees:  a real estate transfer tax of 1.5%,  roughly 1.1% for documentary stamps,  public registry fees of .05%,  and notary fees of between 1.25%-1.5%.             

Buying real estate in Costa Rica can and should be a financially and emotionally rewarding experience. Here you can make an outstanding real estate investment and have the benefits of property ownership in a tropical paradise. The key to a successful real estate purchase transaction in Costa Rica, as is true elsewhere, is to be well informed of the laws and processes involved.  

"An investment in knowledge pays the best interest".  Benjamin Franklin

Costa Rican real estate laws allow for the absolute right of property ownership.  Property owners have the right of possessing, enjoying, and disposing of property.

A National Public Registry (Registro Nacional) is located in San Jose, the Capitol of Costa Rica. The registry is responsible for the recording and registration of legal documents that relate to property, title, mortgages, security instruments, powers of attorney, and corporations. Many real estate transactions must be recorded in the registry to have legal effect. The registry is divided into specialized sections. The Property Section (Registro de la Propiedad) maintains legal information pertaining to real estate.   

(1) While out looking at real estate, a survey map can provide you with the means to inspect the property boundaries. This map is known as a Plano Catastrado. An official and registered Plano Catastrado will have the stamp of the Catastro Nacional as well as a registration number. The Catastro National is the section of the National Registry responsible for survey maps. Not all maps are current so careful consideration should be given to the date of completion. It is also possible that an existing survey map may have errors. For this reason it is sometimes recommended that a new survey be completed prior to the purchase of real estate. 

2) When a buyer has identified a property of interest, the next step would be a title search in the Public Registry. The real estate Property Section of the registry is fully computerized and indexed. A title search can be initiated with the name of the registered owner or a property title number, referred to as a Folio Real. The title search will identify anything that may adversely affect title, as well as confirm the owner of record.       

(3) If the survey map and title search are satisfactory to the buyer, and the buyer is prepared to present an offer, a purchase offer contract is drawn up and presented to the seller. The buyer agrees to make an earnest money deposit to a third party on acceptance of the offer. If there is a need for additional time prior to closing, for example, for the time necessary to complete an inspection, the buyer of the real estate can choose to submit an option to purchase, or Opcion de Compra. Legal procedures to transfer ownership of title may begin after acceptance of the purchase offer or after closing on the option to purchase. 

(4) Real estate is transferred from seller to buyer by means of an executed transfer deed, referred to as an Escritura de Traspaso. This document must be executed before a Notary Public, who must also be an attorney. It is the job of the Notary Public to be sure that the transfer deed (Escritura) is properly presented (Anotado) and registered (Inscrito) in the Public Registry in San Jose. When  real estate is recorded in the registry, it is assigned a registration number (Folio Real). 

The National Registry operates under a "first in time, first in right" system. The first person to file an interest in property in the Public Registry has the rights to the property.  While it is the job of the Notary Public to file and register the transfer deed (Escritura), it is ultimately the real estate buyers responsibility to follow the registration process through to completion. "First in time, first in right". The transfer deed should normally be registered in 21-40 days from presentation, contingent on the work load of the Registry at the time of presentation.   

Real estate can be purchased in an individuals name, jointly with another person, or in the name of an individuals corporation. Purchasing real estate in the name of a corporation can help protect you and the property from possible future liabilities. Additionally, if you sell the property, there are fewer closing costs if title is held in the name of a corporation.

Shoreline property (beach), river property, and island real estate all have special zoning restrictions and regulations. In beachfront areas, 200 meters of shoreline are owned by the Costa Rican government. The first 50 meters are zoned public, and private possession is not allowed.The remaining 150 meters inland are a restricted zone. This area can only be utilized by way of a government lease, known as a Concesione (concession). Terms of a Concesione range from 5-25 years. Consultation with a real estate attorney is recommended prior to a purchase in any of these areas.  

Excerpts for this page are credited to the book, The Legal Guide to Costa Rica, by Roger A. Petersen. This book is an excellent source of information and can be ordered at  http://search.barnesandnoble.com/The-Legal-Guide-To-Costa-Rica/Roger-A-Peter

   Osa Pacific Properties / South Costa Rica / Osa Peninsula  Real Estate 

Buying Costa Rica Real Estate