Buying property anywhere has it's own nuances, buying in a foreign country where the laws, land types and language are different is what can be confusing. To give you a little history about us and our frame of reference; Pacific Properties is a family run boutique brokerage, we have been living in Jaco beach for over 30 years, with over 25 years in the Real Estate industry as well as over 10 years working as translators for the Courts of Garabito (Garabito is the County in which the District of Jaco resides) and we believe the best way to empower our clients is to give them confidence throughout the transaction by sharing our knowledge, resources and tools.
1- Realtor: Never underestimate the power of a well informed and connected Realtor, the lack of a centralized MLS in the country means there's a lot more information to sift through, relationships supported by a strong local network can give you access to unlisted pocket listings, current market insights & local nuances. That said we always advise to confirm your Agent has good local referrals (we have many great Agents and are happy to refer each other), is directly registered with SUGEF (this provides accountability as unfortunately we have become saturated with undocumented foreigners selling Real Estate without residency or work permits, not paying taxes, etc.), can bring at least 3 years of experience in the area they are selling and speaks the local language.
2- Property types: Costa Rica has different property laws and land types for example, the Jaco area is one of the biggest titled beachfront areas in the country, most beachfront property around the country falls under what's called a concession, whereby there's a long standing lease with the government for said property allowing it to be sold or transferred through the sale of the lease itself, under Costarican law every beach is deemed public land, access can not be restricted nor can be beaches be privatized in anyway, there is a 50 meter setback from the hightide line and must be respected as public land and maritime zones. Most large parcels of land used for development are registered as agricultural, allowing for a minimum lot segregation of 5000 m2, properties accessed by an easement that don't have direct contact with public road in most cases present building restrictions, all properties with creeks or rivers must respect a 15 meter building setback. Another challenge Costa Rica faces is it does not have a centralized sewer system so each home or development must consider the installation of a water treatment plant (learn about the most innovative and eco-friendly system in Costa Rica here: www.lzt.cr)
3- Documents: The basic set of documents involved in the process of buying or selling Real Estate in Costa Rica are: LOI (Letter of intent), PSA (Purchase & Sales Agreement), Escrow Agreement, Due Diligence Report, Purchase & Sale Deed. Each document represents a part of the process and the parameters within which it unfolds. For a more complete breakdown of each document visit our Buyer & Sellers Guide https://pacificpropertiescr.com/buyers-guide
When purchasing or selling property there is also what's known as a due diligence period, usually established in the LOI and PSA, during this time the Seller or their legal representative, provides the requested documentation (this list will be curated by your attorney) to verify due diligence to move to setting a closing date when the Purchase & Sale Deed will be signed, the most basic document any property should have in Costa Rica is called a Plano, in essence its a registered property survey with all the information on location, size as well as location references that's been duly accepted in the National Registry, the National registry is a free and public source of information (create a free account here: https://www.rnpdigital.com/shopping/registro.jspx ) You can look up everything from properties to corporations and cars as well as pay for and download documents like a personeria (this is an official document emitted from the National Registry showing current ownership and legal representatives for a corporation, this cannot be obtained if the corporation is behind on yearly corporation taxes). Aside from the Plano, other documents are a copy of the property taxes up to date as well as the Registered Value Declaration which is to be done every 5 years at the Municipality of Garabito by the owner or a legal representative, if purchasing a condo or home in a gated community the HOA bi-laws should be part of due diligence documentation. An attorney is needed alongside your Realtor to guide the process, verify documents and interpret information so you fully understand the process, everything in a Real Estate transaction should be clear and transparent. We recommend purchasing only fee simple titled property as its a safer and more versatile asset, for a more complete breakdown of each document visit our Buyer & Sellers Guide https://pacificpropertiescr.com/buyers-guide https://pacificpropertiescr.com/sellers-guide
