In Costa Rica, the properties are titled and registered at the Public Register in San Jose. Consequently, all titled land can be accurately and safely title-searched in order to determine all relevant aspects on the specific property, such as ownership, liens, encumbrances, annotations or other issues that may affect ownership rights or the possibility of transferring the land to a third party.

All transactions dealing with real estate, including property transfer, require for buyer and seller to sign a deed before a Costa Rican Notary Public (whose concept is different than the one in many other countries such as the United States, Canada or the United Kingdom) and for such deed to be recorded at the Public Register. 

A few simple verification steps must take into consideration before undertaking any negotiation of land in the country, this verification includes: 

• Verification of the title of land
• Legal representation (if it is not a physical person)
• Liens, encumbrances and annotations on the property

Real Estate property can be owned either on a personal capacity or through a corporation. Although, foreign ownership is fully permitted, it is advisable to purchase property through a corporation. This structure allows having flexibility and more predictability on areas regarding real estate planning, tax management, and representation.

When the property is owned by a corporate entity, it is necessary to perform a corporate search at the Commercial Section of the Public Register. This procedure will allow verifying that the entity is in good standing and that the proposed signatory of the transfer deed has sufficient capacities to do so.

Purchase to portions of land is also possible in Costa Rica. It is required a registered map to purchased, properly authorized by the local government (municipality) where the portion of the land is located. It is recommended to purchase real estate property with a specialized firm in the acquisition, development, financing, sale and leasing of commercial, residential and beachfront real estate projects.

Several areas of the country are not subject to private ownership; the possession of these areas is granted as a concession for a period of time. This can be compared as a lease with our government.  

Usually, concessions are extended under Maritime Zone Law. Also, it is also possible concessions on protected areas (ecological protection). Concessions need a special process before the authorities, which varies depending on the type of concession granted. This kind of transaction should be used with extra caution. In the case of foreign people concessions, also have particular regulation that prohibit in some cases grant the concession; some specific cases mention in the law are:

• To foreigners  who has not residence in the country for at least five years
• To corporations  with cash shares
• To corporations or entities not establish in Costa Rica with a national address
• To corporations form in Costa Rica only by Foreigners
• To entities which its stock shares are hold in more that fifty percent to a foreign owner

Contact our Lawyer at Costa Rica Realty.