Property Settlements in Costa Rica

There are many reasons why many Americans and people from Western Europe are flocking to Costa Rica and creating a thriving expat community in this small Central American country. For the businessman, Costa Rica is seen as a tax haven with affordable real estate and very lenient tax laws, allowing for a thriving business climate. For retirees, Costa Rica offers affordable living. Being retired in America is becoming more difficult financially and many retirees are seeing a shrink in their benefits. Costa Rica offers affordable living at the standard that most retirees from the United States, Canada, and Europe are accustomed to. There are many reasons why many people are relocating to Costa Rica, but like moving to any other foreign country, you need to become accustomed to the local laws.

The Real Estate Industry in Costa Rica

There are some vast differences concerning the buying and selling in real estate in Costa Rica that you need to understand the pitfalls in the business and how you can get out of them. Unlike the United States, Costa Rica has very liberal real estate laws which allows for chaos to take place if you don’t know how to protect yourself.

The first thing you need to know about Costa Rica is that realtors do not need to be licensed to deal in real estate, like in the United States. Anyone can sell real estate and claim that he or she is a realtor. In fact, many Costa Ricans do and earn themselves a nice commission. Furthermore, many people who get into the real estate bubble have little or no experience in the real estate industry and thus things can change abruptly.

Appraisals

Unlike in the United States, where people hire an appraiser on a regular basis, this is not usually done in Costa Rica. Mortgages are a brand new concept in Costa Rica and typically that is the only time when an appraiser will be hired is if there is a mortgage taken out on a home. The appraiser is then only hired by the bank who holds the mortgage. In many cases, people who buy a home in Costa Rica pay with cash up front and buy the home outright. You need to educate yourself and also you should hire an attorney that has the expertise in property settlement law.

Property Settlement Law

When you buy property in Costa Rica, you will get a deed and a title to your property, like in any other country. You want to make sure that the seller signs the deed and title to your name and you should do this in the presence of an attorney who is experienced in property settlement law. This can take some time and having the attorney can add some weight to the agreement. You can also make a property settlement without an attorney, buy you could leave the door open for fraud and you would not have the necessary documentation to prove that you are in the right. Our law firm specializes in property settlement law throughout Costa Rica.