Buying Tips - The Property Purchase Process    

A Thorough Title Search

   Once the status has been determined to be in order the Buyer can either proceed with negotiations with the Seller on price and closing conditions, or take additional steps to assure that the property is what the Buyer wants. The Buyer may want to investigate a bit further for any other possible not registered restrictions, and assure that all the Buyer's needs are supplied, such as water, electricity, sewer, etc. to the property

   If the Seller, or the Seller's  intermediary provide only oral statements about the legal status of the desired property, the Buyer should insist on being presented written evidence of these statements.

Independent Appraisal

   Often the Buyer may want to obtain an independent appraisal just for a reference, as this appraisal may not reflect the actual value of the Seller's property.  The Buyer may also decide on a home inspection to help determine whether any unseen  structural problems are present.

A Minimum Option

   During negotiating if an option needs to be signed, the Buyer should not offer more money than is strictly necessary. In Costa Rica, options are seldom registered.  If an option is not complied with, it becomes a lengthy court process to have them honored. To register the option against the property, the Buyer should be aware that it may be expensive, but is the most common way to insure the option will be honored. Buyers should have their own legal counsel available for options and any other related pre-closing documents.

Give It Some Time

   The Buyer should not be in such a hurry as to not allow ample time between the moment the Buyer makes the decision to purchase and the closing.  The Buyer's lawyer should use this time to check the property thoroughly and making sure the property seen is the one the Buyer is buying. The Buyer should request a plot map.   If one is not available or there are doubts as to its exactness, the Buyer should insist on having a new one made.  And if necessary, get professional help from a surveyor or property research company.

   Once the negotiation is agreed upon, the Buyer needs a notary to research the property in the National Registry, draft the closing deed, and have both parties sign it.  All deeds in Costa Rica are written in Spanish. If the Buyer or Seller do not speak Spanish fluently, they  have the right for an interpreter to be present, who may be the notary, and to have the deed mention the fact that it was translated and explained to the Buyer/Seller in their native language.  The interpreter is an additional cost and is not included in the notary's fees.

The Deed

   The notary then needs to present an original copy of the new deed as soon as possible to the National Registry, so that it is annotated against the property. This is important, to assure that any other sale of the same property has not been annotated in the Registry.  If so, the first sale would have priority and the Buyer of the second sale would have the only alternative of suing the Seller for fraud.

  Once the deed is registered, the Buyer has the right to obtain proof of registration, usually the original copy of the deed, duly registered. The registration seals must be visible on the copy and it  will have the relevant information as to where the transactions are registered.  The property will have a folio real number showing who is the owner.  The folio real is a public record and anyone can obtain a copy at the National Registry.

   Computerized registry statements are available.  These are not legal certificates, but show what is registered.  An independent notary can also certify property ownership.  If a Buyer is in doubt, it is advisable to assure that registration has taken place.

   If the purchase is not fully registered and is only annotated, there may be problems transferring the property afterwards, as it is necessary to finalize registration before a new transfer can be registered.