Buying a Property in Costa Rica

The decision to purchase real estate in a foreign country can at first be a daunting proposition.  However, it is possible to safely buy property in Costa Rica with the assistance of a reputable REALTOR® and attorney.  Your REALTOR® should be able to help you to locate property suitable to your needs, educate you as to property values and other considerations in your chosen area, and assist you with negotiating a fair price. You should also use an attorney (Certified Public Notary) with a good reputation who can handle the financial aspects of the transaction and ensure that you will have legal title to your property.

Title Insurance is available in Costa Rica through well-known international companies such as Stewart Title and Fidelity Life, Chicago Title and Land America

Ownership: It is possible to purchase real estate through direct transfer where one or more individuals acquire property in their personal name.  Purchasing properties through a new or existing corporation is also very common in Costa Rica.  The process of setting up a corporation is not complicated or expensive, but requires the expertise of your attorney to follow the legal protocols involved.

The Public Registry of Properties: All property in Costa Rica should be registered in the Public Registry of Properties, whether the property is fee simple or concession. By means of the Public Registry of Properties your attorney will be able to confirm that the seller possesses ownership of the property, and to discern if there are any restrictions on the property before the deal goes through. Avoiding the purchase of unregistered property is strongly recommended.

Folio Real Numbers and Cadastrals: Each property registered in the Public Registry of Properties has a Folio Real number, which is the unique number assigned to each property to identify it.  The number is comprised of three parts, the first number indicates the province, the second group of six numbers is the number of the property itself, and the last group indicates how many owners the property has.  All properties must have this number in order for clear title to be obtained. Each registered property also has a survey plan, or Cadastral.  In order to transfer, mortgage, or acquire a property, the survey plan must be recorded at the Public Registry of Properties.

Property taxes in Costa Rica are very low, only ¼ of 1% of the registered property value.  Certain standard closing costs are required in Costa Rica to transfer the title of a property from the seller to the buyer, and this is always paid by the buyer.  Closing Costs include: (1) Real Estate Transfer Tax, which is 1.5% of the registered value of the property on the deed; (2) Documentary Stamps, which total approximately 1.25% of the registered value; (3) The Notary Fee, which is 1.5% of the first million colones and 1.25 % on the balance of the property sales price.  This means on the purchase of a $100,000 property, closing costs would be approximately $4,250, and property taxes $250 per year or lower.

Financing: If you need to borrow funds, it is generally far simpler and interest rates are usually lower in your home country. However, if your credit rating is impeccable, financing in Costa Rica may be available.  Some banks, such as the Bank of Nova Scotia, offer financing to foreigners. Usually the bank will finance somewhere between 40 and 50% of the purchase. Certain projects and/or private owners may also offer some kind of financing arrangement.

If you have any questions please don’t hesitate to contact me

Information taken from sources believed reliable but not guaranteed

Woodbridge, Ontario,  1 November 2010 -  Life Rich Real Estate™ has completed training of the first group of Certified Life Rich Real Estate™ Advisors. These licensed REALTOR®’s are now equipped to assist their clients in searching for and purchasing second properties in Canada or abroad for vacations, 2^nd homes,  retirement homes or  investment as an expansion to their current real estate practice.

The Life Rich Real Estate™ program is designed to help Canadians in matching people with place with purpose based on a scientific approach to understanding and defining the qualities in real estate purchases that will deliver enduring satisfaction and happiness.  Their approach is based on the best selling book “Life Rich Real Estate” by Richard Dolan and founded on the emerging principles of the psychology of happiness in the work of Dr. Martin Seligman (University of Pennsylvania) and Dr. Daniel Gilbert (Harvard University).

Certified Life Rich Real Estate™ Advisors are trained to introduce their clients to the Life Rich Real Estate™ discovery methodology, and to work with Life Rich Real Estate™ in identifying properties that match clients’ interests.  This is a vitally needed service as many offshore destinations including most Caribbean countries  do not have an open market like our MLS® system. As a result, many purchases are made based on a very limited search, or in an enthusiastic moment during a vacation.  Life Rich Real Estate™ has the goal of making these important purchases subject to the same full disclosure and wide search range as residential properties in Canada.

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Background on the Life Rich Real Estate Program

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Life Rich Real Estate™ is dedicated to meeting the needs of Canadians like you in matching people with place with purpose as you plan the next years of your life. We are not affiliated with any specific development or destination, and through our extensive network of brokers in other countries, can assist you in finding properties that match your specific interests and goals.

The Life Rich Real Estate™ program includes:

• Life Rich Real Estate™ Certified Properties:  We have already executed a due diligence review of the title, permits, valuation, home owners association structure and financial status of the developer and of the property.  These documents are all on file with Life Rich Real Estate™ and can be viewed by prospective buyers and their lawyers.
• Life Rich Real Estate™ Certified Advisors : The REALTOR® who is sharing this newsletter with you is a Life Rich Real Estate™ Certified Advisor  and can provide you with access to the entire suite of Life Rich Real Estate services.
• Life Rich Real Estate™ Publications:  Our approach and methodology is completely described in the book “Life Rich Real Estate” by Richard Dolan.  This book is available for free as a pdf or audio book from your REALTOR®.  There may be a modest cost for a paperback edition.
• The Life Rich Real Estate™ Website: The website will profile a variety of properties including both Life Rich Real Estate™ Certified Properties and other properties currently listed for sale.
• Life Rich Real Estate™ Transaction Services: We provide trained, licensed REALTORS® who will work with you through each step of your exploration and purchase.
• Life Rich Real Estate™ Education: We make available education sessions for people considering the purchase of a new property to guide them through a self-discovery process designed to identify the true requirements and constraints that will be important in making a choice.
• Life Rich Real Estate Discovery Trips: From time to time we offer guided travel opportunities to destinations of interest where you will meet a variety of developers and tour a variety of properties as well as local markets, entertainment areas and neighbourhoods as part of your search process.

There is no subscription charge, and our services are offered without additional fees to you.  Some specific events such as the Life Rich Real Estate™ Education sessions, and Life Rich Real Estate™ Discovery Trips may be offered from time to time with an enrolment charge  to offset our costs, however none of these are required to participate in our program.  Your REALTOR® will keep you aware of all upcoming events.

Welcome to the world of Life Rich Real Estate™

Given serious escalation in detached housing values, condominium apartments and towns have now emerged as the first step to home ownership, says RE/MAX Ontario-Atlantic Canada.

Here is the full RE/MAX Fall Condo Report

Information taken from sources believed reliable but not guaranteed