Real Estate Investment Transactions in Costa Rica
Closing on the Purchase
Costa
Rica Real Estate Attorneys
Real
estate transactions in Costa Rica are handled
through attorneys, much like in the eastern
states of the U.S. A title company may
conduct the closing or may just provide optional
title insurance. In either case, real
estate attorneys perform the actual title research
and coordinate the closing process.
In
making a Costa Rica real estate investment,
you want to first select an attorney to work
with…one that is competent and trustworthy.
This can be a challenge as there are more
attorneys per capita in Costa Rica than in New
York City! Just ask your taxi driver and
he’ll recommend his brother-in-law (no kidding!).
At
our ERA Ocean Properties, we work
with and recommend to our clients perhaps the
premier Costa Rica law firm specializing
in Guanacaste area real estate – Montejo
Law Associates. However, you are welcome
to select any attorney.
Costa
Rica Real Estate Property Title
The
good news is that foreigners are welcome and
encouraged to own titled land in Costa Rica
(unlike some other Latin American countries).
Titled land in Costa Rica is very similar and
equivalent to “fee simple” ownership in North
America. All of the properties offered
at our Catalina Cove development are
titled and upon purchase, title will vest in
your name (or the name of a corporation if you
choose that option; see below).
Title
insurance or title guarantees are available
in Costa Rica and can be purchased through Latin
American subsidiaries of well know companies
such as Stewart
Title.
One
factor to keep in mind is that all Costa
Rica real estate properties (suitable for
a real estate investment) are registered
in a centralized government database at the Registro
Nacional. If you know a property’s registration
number or folio real (and a little Spanish),
you can research the title status yourself,
online!
Title
is transferred through the use of a transfer
deed which in Costa Rica is known as a Escritura
de Traspaso and must be signed in the presence
of a Notary Public. In Costa Rica the Norary
Public is an attorney and requires an additional
year of specialized training to achieve this
highly regarded qualification.
Use
of a Corporation When Buying Property In Costa
Rica
As
a buyer of property in Costa Rica, you
have several options regarding how you can take
title.
You
can own the property in your name individually,
jointly with a spouse or other persons or in
the name of a corporation.
The
most common practice in Costa Rica is to form
a corporation and then hold title to the real
estate in the name of the corporation. This
is typically done for two primary reasons:
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