Your Trusted Tico Homes Real Estate Agent

There are no licensing requirements for real estate brokers in Costa Rica. Since virtually any citizen can go into business as a realtor, it is important to verify that the agent is a paid member of a real estate association. Currently, the most popular association is the Cámara Costarricense de Corredores de Bienes Raíces -CCCBR. This organization sets standards of service and offers a sense of transparency and security to foreign buyers. 

After hiring a broker, the standard steps to purchasing property are as follows:

Make an Offer: The first step is to make an offer in order to demonstrate interest in the property and put yourself ahead of competitors. Most offers are generally lower than “asking price.” An offer should be high enough to ensure likelihood of closing the sell, but low enough that you are not paying more than the property is worth. Check the worth of a property by conducting research on surrounding sales and getting a second opinion from an assessor.

Finance Your Property: As with most countries, it is unlikely to receive local financing as a foreigner. Most financiers require that applicants are legal residents of the country. It is possible to receive grants or loans as a major developer, but the most common ways to finance your property in Costa Rica include home equity loans (on your existing properties), direct savings, or retirement funds.

Experienced brokers can recommend a local attorney to process what is known as a “due diligence report.” The law in Costa Rica requires you to produce a due diligence report as proper documentation that you are making a legal purchase. This report usually includes verifying registration of the title for sale, knowledge of any existing mortgages or liens on the property, and proof that any back taxes have been paid in full. The lawyer should also create and append the official contract of sale.

Costa Rica law requires that a local Notary Public confirms and formalizes your purchase transaction. You must sign the deed and record the transaction with the Public Registrar to ensure a legal purchase. Fortunately, you do not necessarily need to be present in the country to complete this step. Simply sign the documents remotely or authorize your lawyer to employ the power of attorney.

You should anticipate any required closing fees to reduce unexpected surprises down the road. It is customary that the buyer and seller each pay half of the total closing costs, but since this is not always the case, you should verify this early in the process. Closing fees can include deed transfer taxes of around 2.3-percent and attorney association (Colegio de Abogados de Costa Rica) fees of approximately 1.5-percent of the sale price. Total closing fees can cost up to 3.8-percent of the declared value of the property.

Purchasing Costa Rica real estate for sale is an incredible opportunity, and many buyers are delighted to find the process much simpler than in other Caribbean countries. However, there are potential mistakes you should avoid in your quest for the perfect property. 

Since the culture of Costa Rica is laid-back and welcoming, some buyers make the mistake of assuming that the process is overly simplistic. It is important to have written documentation of the real estate market and municipal laws to avoid legal pitfalls. For example, a property for sale needs to be fully registered and titled to avoid any claims against the property after you have already handed over your money.

Verified realtors who are members of CRGAR are safer to work with than individuals with unverifiable credentials. Ask friends, colleagues, or fellow expats for recommendations on the best real estate brokers and bilingual attorneys before buying a property.

While you may feel eager to officially own your own corner of paradise, rushing the process can lead to greater expense and legal trouble down the line. Make sure to complete all required paperwork and register with the required governing bodies so that you do not encounter problems in the future.

Ideally, you should visit the property multiple times at various points of the year to know exactly what you are getting. You can also hire an surveyor to fully evaluate the property and surroundings.