The Frequently Asked Questions found in this section are of a broad nature and includes some information that seemed to fit best here. Our site is meant to be a comprehensive collection of information to help you get a full perspective on what is entailed in buying real estate in Costa Rica. We recommend that you look through our entire site as it is loaded with information that goes well beyond our FAQ’s page. The educated buyer will be less likely to make a bad investment.
How safe is it to buy real estate in Costa Rica?
Buying titled land in Costa Rica is just as safe as buying titled land in the United States, Europe or Canada. The principles of offer and acceptance and the public registration of ownership, leans and encumbrances are no different here. Costa Rica has no restrictions on foreign ownership of real estate unlike some other countries such as Mexico.
The laws that govern real estate within 200 meters of the ocean are different however. A detailed description of what is entailed in acquiring land in these areas can be found by clicking the “real estate info” button on the home page and going to page two, the section titled “Zona Marítimo Terrestre “, A detailed description of property rights can be found within real estate info under the tab “Property Rights”.
Should I worry about squatters stealing my land?
Costa Rica has old laws on the books that were written to prevent large amounts of land from being owned by only a few wealthy people. Squatting allowed families to own a piece of land that was not being developed or in use. Although not common there have been instances where a few unscrupulous people have exploited this law to gain access to properties purchased by foreigners who do not reside in this country. There are some simple steps that can be taken to prevent this from occurring if you plan on buying real estate here.
The basic recommendations are that your property should have a clear fence line around it with signs that have your name as the property owner. If you will not be living on your property full time a care taker or property manager should be hired to watch for squatters and manage your property so it is obvious that someone owns it. Consult your attorney about what you need to protect yourself. Although rare this is something you should understand when buying your property.
Why is the same property listed for different prices on different websites?
This is also commonly known as a “net listing”. A net listing is where the agent sells the property at a higher price than what the seller has asked for. The agent will then usually keep the money he made above the sellers asking price for himself. This is not only legal in Costa Rica but a common practice as well. If you find a property you like and happened to see it at a higher or lower price on another site, proceed with caution.
Here are some suggestions to help protect you from net listings. Do a thorough search to make sure the property you are interested in does not show up for a different price on another realtor’s website. Does your realtor have information about net listings on his website? You should also demand that full disclosure is a part of your purchase agreement contract, that all commissions and fees be disclosed. By having the seller legally disclose all fees or commissions they will pay, this should help give you the peace of mind that you were not the victim of a net listing.
How do you protect yourself from paying more than you should
on your property?
Prices for property in Costa Rica are mainly driven by demand. There are no comps to be pulled to see if the price you are paying for your property is a fair price. In rare cases you have to watch out for unscrupulous agents that have set the prices of their listing too high out of nothing more than greed. A good agent will be familiar with the market and list properties that are in line with the current market conditions. We are constantly watching the market and know the developers we work with to help protect you from paying more than you should for the properties that we list.
What you need to know about termites.
When buying a home in the Southern Zone of Costa Rica a termite inspection should be done. This sounds like common sense but it is not a requirement here and is rarely done. It’s even harder to find a qualified person to do a proper inspection. The lush tropical landscapes are the appeal in this area. A quick walk into the surrounding area of your home will more than likely show termite nests in the trees.
Looking for termite trails will not necessarily expose termite infestation in a home (they can be swept up). The truest way to determine termite damage if any is to drill a small hole into and inspect all areas of the house where wood is prominent. This includes the rafters of the house. This is just a piece of friendly advice that you won’t find on most realtor websites ;-)
We know a few qualified contractors that can do a proper termite inspection and we utilize them for our clients.
How can I get residency in Costa Rica?
There are several residency options available to foreigners looking to relocate to Costa Rica like Pensionado, Rentista or Inversionista. Your options will depend on your individual situation. Our recommendation is to consult a lawyer regarding residency.
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