Buying property in Costa Rica can feel like navigating a maze of legalities and processes, especially for first-time international buyers. But don’t worry—we’ve broken down the process into simple, actionable steps so you can move forward confidently with your real estate dreams. Here’s how it works:
Step 1: Purchase Option Agreement
The journey begins with signing a purchase option agreement, a preliminary contract that lays the groundwork for the transaction. This document ensures that the property is reserved for you under agreed terms. Your law firm, ideally a trusted name in Costa Rican real estate law, will draft or review this agreement for you.
Step 2: Setting Up Escrow
Next, you’ll need to establish and fund an escrow account for the initial deposit. During this stage:
- Complete the Know Your Customer (KYC) and Source of Funds checks.
- Transfer the refundable initial deposit into escrow.
This ensures both parties are protected as the due diligence process unfolds.
Step 3: Due Diligence
Arguably the most critical step, due diligence ensures the property is free from legal and technical issues:
- Your law firm will verify property ownership, zoning, and any encumbrances.
- Professional surveyors or engineers may inspect boundaries and structures.
If any issues arise, you have the flexibility to renegotiate or withdraw, ensuring your investment is safe.
Step 4: Fund Final Payment
Once due diligence is complete and the results are satisfactory, you’ll fund the escrow account with the remaining purchase price and closing costs. This step prepares you for the finalization of the sale.
Step 5: The Closing
On the agreed closing date:
- Both buyer and seller sign the conveyance deed before a Costa Rican notary.
This deed formalizes the transfer of property ownership, a pivotal moment in the process.
Step 6: Property Registration
After the deed is signed, Invicta Legal ensures the property transfer is officially registered with the Public Registry. This step secures your ownership rights.
Step 7: Post-Closing Essentials
Finally, the finishing touches:
- Transfer utilities and public services to your name.
- Update the property records and value at the local municipality.
Invicta Legal will assist you with these tasks to make the transition seamless.
Why Work with Professionals?
Costa Rica’s property laws are straightforward but require precise attention to detail. A legal team like Invicta Legal simplifies the process and ensures no steps are overlooked. Whether it’s understanding local zoning laws or navigating the unique maritime zone regulations, their expertise will save you time and potential headaches.
A Clear Path to Your Costa Rican Property
By following these seven steps, you’re not just buying property—you’re investing in a lifestyle in one of the most beautiful destinations in the world. With expert guidance and thorough preparation, your Costa Rican property purchase can be smooth and rewarding.
Ready to start? Contact us for vetted advisors, opportunities and options for legal teams you can trust.
