An increasing number of buyers from the United States and Canada are considering Costa Rica for second homes, retirement properties and real estate investments.
For their real estate agents, properly supporting these clients also means knowing when local legal counsel should become involved and understanding some of the differences they may encounter in a Costa Rican transaction.
A different transaction process
Costa Rica’s legal process may differ from what buyers and agents are accustomed to in North America.
The National Registry, the role of the notary, lien searches, corporate ownership structures and specific issues affecting coastal properties are among the matters that may require review before closing.
Understanding these differences allows international Realtors to better manage client expectations.
What should the buyer prepare?
Before moving forward with an acquisition, buyers should have clarity regarding:
- personal identification and documentation;
- source and transfer of funds;
- ownership structure;
- intended use of the property;
- potential escrow requirements; and
- any property-specific issues.
Early preparation helps coordinate the buyer, Realtor, attorney, notary and other participants involved in the transaction.
The local attorney as part of the team
When an international Realtor refers a client to Costa Rica, the relationship should not end with the introduction.
Good coordination between the Realtor and local counsel can help keep the client informed, identify potential obstacles and move toward closing more efficiently.
Each professional can focus on their area of expertise while the client receives a coordinated experience.
Questions to ask before recommending a property
Before recommending a property, it may be useful to determine:
- whether title is properly registered;
- whether liens exist;
- whether the property is located within the Maritime Zone;
- whether it forms part of a condominium;
- whether permits or restrictions may apply; and
- how the transaction is expected to close.
These questions do not replace Due Diligence, but they can help identify matters that require legal review.
Building a long-term referral relationship
For international Realtors, having trusted local counsel can support more than a single transaction.
It can create a reliable referral relationship for future clients and provide buyers with a professional who understands both Costa Rican law and the dynamics of an international real estate transaction.
Author:
Mauricio Ramírez Rodríguez
Attorney – CENTRAL LAW in Costa Rica
Certified International Property Specialist (CIPS) – National Association of REALTORS® (NAR)
At CENTRAL LAW in Costa Rica, we work with buyers, investors and international real estate professionals on transactions involving Costa Rican property.
Disclaimer: This content is for informational purposes only and does not constitute individualized legal advice.
