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Congratulations! You've found your perfect building site: the right price, ideally sized, and boasting a beautiful location that will accommodate your dream home. This is an exciting step in the building process, as your vision starts to become a reality.
Before committing to purchase, hire an attorney experienced in real estate law. Costa Rica's property laws may differ from those in your home country, so a local, knowledgeable lawyer will be indispensable during this process.
The first step is to make a close, personal inspection of the property. Note the boundaries, the location and condition of fences and/or property markers. If you think it's necessary, bring in a surveyor to look things over. Ask for information about your neighbors and talk to them in person. Study the conditions and amenities of the property, such as topography, electricity, water drainage, telephone services and restrictions on land usage. If public utilities are not yet connected, speak with the respective companies. These services take time to connect, and may require additional expense.
Begin the legal process by visiting the Public Registrar (Registro Publico) and running a title search on the property. This will determine whether there exists a legal title to the lot, and whether any liens or encumbrances have been placed against the property. If problems arise and the issues are not addressed, you could lose possession of the property.
A title search will also help determine that the deed (escritura) and the cadastre (catastro) are in agreement regarding the land's dimensions and other features. The deed describes the property in words, and the cadastre is a map that outlines the property's physical features. Many problems arise because changing one document does not necessitate change in the other, so one may be dated and the other current. To determine the accuracy of the property map, always hire a licensed topographer to review the cadastre. Any discrepancies must be reconciled before continuing with your purchase.
A title investigation firm can help wade through the paperwork and provide legal support and local know-how. You may want to consider purchasing title insurance. Title insurance protects the buyer, indemnifies him or her against any eventualities that might arise, and guarantees the financial investment.
In addition, your lawyer will advise you on current zoning restrictions, which are constantly evolving. Each municipality has its own rules, and prospective buyers should pay attention to regulations regarding maritime, riverfront and other special property types.
Also be sure that your dream property is not located in a national park or reserve. Search for national park restrictions in the Energy, Natural Resource and Mine Department (Ministerio de Recursos Naturales, Energia y Minas) and the National Park Service (Servicio Nacional de Parques). Check the property records at the Roads and Transportation Department (Ministerio de Obras Publicas y Transportes) to determine that no new, planned roads will vivisect your future home. Additionally, check with the Forestry Department (Direccion General Forestal) to make sure that you can use and modify the property without breaking any forestry laws. Certain plants and trees are under strict protection, and you will need special permits to prune or cut them down.
A good lawyer will welcome questions, answer each one thoroughly, and keep you advised of the progress. You should remain vigilant and follow the step-by-step process closely. For closing, you must supply a copy of the property tax receipt (impuesto territorial) to prove that all taxes are current, proof that all liens, mortgages and encumbrances are paid, a certificate (constancia municipal) from the municipality where the property is located and sufficient funds to pay taxes, notary fees and registration fees due on the property.
This may seem like a daunting process, but thorough preparation will help to secure and protect your future dream home. Start the process off on the right foot by hiring a recommended lawyer that you trust. With the right help and diligent follow-up, purchasing property in Costa Rica is a simple and straightforward process.
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