A beachfront listing may look straightforward: a familiar broker, an attractive price, and a seller ready to accept an offer. Yet many of the common mistakes foreign buyers make in Costa Rica begin when a buyer treats that first impression as legal confirmation. A property transaction is not secure because the home is visible, the seller is persuasive, or a document has been signed. Security comes from independent verification, properly prepared documents, controlled payment procedures, and registration where registration is required.<\/p>\n
Costa Rica welcomes international ownership and investment, but its property system, notarial practice, and registry procedures differ materially from those in the United States, Canada, and other common law jurisdictions. Careful buyers do not assume that a familiar process applies. They confirm how the particular property is held, what the National Registry shows, and what must occur before ownership can be safely transferred.<\/p>\n
A listing is marketing material, not a title report. Descriptions of lot size, boundaries, access, water, ocean views, construction status, or income potential should be investigated independently before a buyer commits funds.<\/p>\n
The starting point is normally a current National Registry review<\/a>. This helps identify the registered owner, the property identification number, recorded liens, mortgages, annotations, easements, and other matters appearing in the registry record. It is a critical step, but it is not the entire investigation. A sound review may also require comparison with a cadastral survey, examination of access, municipal information, zoning or land-use considerations, and confirmation of relevant permits or services depending on the property and intended use.<\/p>\n For example, a parcel may be registered but have access that is less certain than a buyer expected, or a survey may not align with the physical occupation on the ground. Those issues should be understood before closing, not after the deed is signed.<\/p>\n The person showing a property is not necessarily the registered owner. Even when a seller is the registered owner, the authority to sell may be limited by a recorded mortgage, a corporate ownership structure, a power of attorney, marital considerations, or other circumstances requiring review.<\/p>\n Buyers should verify the legal owner shown in the National Registry and determine whether the individual signing has authority to bind that owner. If a Costa Rican corporation owns the property, the transaction requires review of the corporation’s legal status, its authorized representatives, and the corporate documents supporting the sale. If someone acts through a power of attorney, the power should be reviewed for its scope, validity, and registration status where applicable.<\/p>\n This is one area where international buyers can misunderstand the role of a Costa Rican Notary Public. Unlike a U.S. notary, who commonly verifies identity and witnesses signatures, a Costa Rican Notary Public is an attorney with specialized public authority. In a real estate transfer, the notary prepares and authorizes the public deed, confirms relevant legal information, and handles the formal instrument required for registry presentation. That function is far more substantial than witnessing a signature.<\/p>\n A verbal promise that a deposit is refundable, or that funds will be used only for a stated purpose, may be difficult to enforce if the terms were never properly documented. Buyers should understand exactly what they are paying, to whom, under what conditions, and what happens if due diligence identifies a material issue.<\/p>\n Before funds move, the parties should have clear written terms addressing the property, purchase price, deposit conditions, due diligence period, closing requirements, allocation of transaction costs, default provisions, and treatment of funds if the transaction does not proceed. The appropriate structure depends on the circumstances. A simple transaction between known parties may require a different approach than a high-value purchase involving multiple conditions, a corporation, financing, or a buyer located abroad.<\/p>\n2. Assuming the Seller Can Transfer What Is Being Offered<\/h2>\n
3. Paying Deposits or Purchase Funds Without Clear Controls<\/h2>\n