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Buying Land in Costa Rica . . . .. . . Download pdf of Frequently Asked Questions
• How do I purchase land at Palm Springs?
• How is title transferred?
• Can I purchase land with other parties?
• What are the closing costs?
• What are the property and capital gains taxes?
Title transfer requires a transfer deed (escritura) before a public notary. In Costa Rica, a public notary must be an attorney. They have extensive power to act on behalf of the state and can draft and interpret legal documents, as well as authenticate and certify the authenticity of documents.
Once a transfer deed is accepted for registration, the Public Registry will return original documents, stamped and properly sealed. Assuming there are no defects in the transfer deed, it should be registered by the Public Registry within 45 to 60 days.
All properties in Costa Rica are registered in the Public Registry section of the National Registry. Each parcel is given an identification number (folio real or matricula) and is available to for the public to view on-line at www.registronacional.go.cr. Some properties are not registered on-line and can be found by going down to the local municipality to search through filed records.
Title at Palm Springs will be taken under Condominium ownership rather than Fee Simple ownership and therefore will be registered in the Public Registry under a special Condominium section called Propiedad Horizontal. Condominium ownership allows a developer to restrict and regulate certain aspects of the development by providing its own by-laws outlined in the Covenants, Conditions and Restrictions (CC&Rs). These CC&Rs describe the privileges that can be enjoyed by individuals who purchase a property in a development. CC&Rs also ensure that the integrity of the project will be maintained in perpetuity. A Home Owner’s Association will manage the execution of the CC&Rs and will collect a small annual fee to maintain commonly shared areas.
Fee simple ownership differs from Condominium ownership by allowing the owner of a property the absolute right to materially own, use, enjoy, sell, lease, and improve the property, subject only to conditions outlined in the Costa Rican laws. Buyers who purchase fee simple title have the most rights under the law to enjoy and use the property as they see fit.