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It is fairly easy to purchase a property in Costa Rica as long as some basic precautions are taken.
The first thing to do is to verify the credentials of the seller and if he is the rightful owner of the property. Buying a property via the services of Coastal Estate will guarantee just that. In order for the buyer to be certain that the property being offered is exactly what he is buying, we retain the services of a lawyer to perform a title search in the Costa Rican Registry.
This Public Registry maintains a very accurate database of all registered properties in Costa Rica. The title search will verify the identity of the owner, the size of the property, is location, the nature or use of the property, and whether the title is a clear title. In short: It cannot have any encumbrance or restriction whatsoever. Some common restrictions are mortgage or pending Law action.
Sometimes, depending of the nature of the property, other types of restrictions may occur. If the property is part of a condominium, is in an environmentally sensitive area or includes a historical site, some construction restrictions may apply.
Another situation one may encounter regarding beaches is the concession. It could be considered a lease that the government gives a private party for the right to use the land for a specific period of time. The terms for these properties are different than the one for regular land, and have particular requirements regarding zoning, occupation, etc.
The land within 200 meters from the high tide line of the beach defines the boundary of the maritime zone. it belongs to the government, with some exception where the property was registered before the law passed.
The vast majority of coastal properties in Costa Rica are subject to this law. The first 50 meters from the ocean are considered public areas with very restrictive uses. The next 150 meters are subject to concession granted by the local government with particular terms and conditions.
The property must be acquired via a public deed issued by a Lawyer/notary who is responsible for registering the sale in the Costa Rican public Registry. Generally, it’s the buyer who selects the notary. However, if the property is to be financed or mortgaged, it’s the seller who selects the notary. Closing Costs are approximately 3-4% of the total purchase price. These costs include legal fees, taxes and other common expenses. |
