Resume Costa Rica Real Estate Transaction Process

Opening the Door to your New Home and Investment

1. Formal Offer via Purchase Sale Agreement: Offers are formalized through a Purchase Sale Agreement.
2. Negotiations: Negotiations occur until a final price is agreed upon.
3. Formal Purchase-Sale Agreement: A formal agreement is drafted during and or after negotiations.
4. Deposit: A deposit is required to secure the agreement, usually around 10% of the sale price.
5. Due Diligence Period: There’s typically a 30-day period for legal and physical inspections.
6. Closing Process: The finalization of the transaction occurs within 45-60 days ask of contract execution..

Differences:

1. Escrow and Deposit Handling: In Costa Rica, the agreement isn’t binding until the deposit is in escrow, unlike some practices in North America.
2. International Money Transfers: Transferring money internationally may have different procedures and timelines.
3. Legal and Procedural Variances: Variations exist in legal requirements and procedural steps, necessitating local professionals familiar with Costa Rican laws.
4. Timeline Variations: While generally similar, there may be slight procedural and timing differences compared to North American transactions.

Other Considerations:

• Closing Costs & Real Estate Commission: Costs are negotiable but typically borne by the purchaser but are negotiable, with real estate commissions are customarily paid for by the seller but can be negotiable amongst parties.
• Property Registration: Properties can be registered in a natural name or through a corporation, both in the Costa Rican National Property Registry and local Municipalities.
• Property Tax & Luxury Tax Property Registration: Costa Rica has minimal property tax rates and imposes a luxury tax on high-value homes.
• Real Property Title & Maritime Zone: Property near water bodies has specific regulations, with limitations on non-citizen ownership in concession zones.