One of the greatest concerns of foreigners purchasing real estate in Costa Rica is in ensuring that the transaction will be executed legally and that the system will ensure a lifetime of enjoyment for the buyer. Unlike some other countries in Latin America, it is possible to safely buy property in Costa Rica with the assistance of a knowledgeable realtor and reputable attorney (Certified Public Notary).
When buying a property in Costa Rica, it is critical to reconcile the actual property with the two documents that legally define a property. The first is the escritura, which is the title document that describes how the property is recorded in the Registro in words; the second is the catastro map, which is the plat map of the property that is on file. Any discrepancies within these two legal documents should be resolved by your attorney prior to completing the purchase.
Costa Rica’s central land registry (Registro) will allow your attorney to confirm that there is clear title to your property, as well as determine if there are any restrictions on the property that are contradictory to your proposed use. As an added precaution, prospective buyers should also engage the services of an international title insurance company such as Stewart Title, a 105 year-old U.S. company based in Houston, Texas, with over 3500 offices in the U.S. and abroad.
You can own all types of property outright or in the name of a corporation. If you wish to own beach-front concession property, there are some special rules to which you must adhere and you are required to have a local partner. While there is absolutely nothing that prevents foreigners from purchasing property in their own name, one should carefully consider the many advantages of corporate ownership before taking title. These advantages should be thoroughly discussed with an attorney.
