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What is the typical structure for buying a preconstruction house or villa in CR? Is it normally a two-stage process? I’ve been told that typically you have an initial contract called an “option de venta contract”, or simply an
option to purchase contract, or an Agreement to
purchase contract.
This contract states you are purchasing the lot
plus the pre-construction house. The construction contract then includes a timeline for each stage and dates to pay like:10% deposit when contract is signed
25% after foundation poured
25% when walls are completed
25% when roof is on
last 15% when completedI’m trying to educate myself on the process
thanks
BobBob, it can be confusing. We work with several pre-construction projects and just about everyone has a different payment structure. In general and from my experience, the less you pay prior to closing the greater comfort you should havve with the developer as they probably do not need your funds to complete the project (i.e. the home/condo is going to be built regardless of if you buy or not). With that said, the above payment structure appears to be more of a construction loan than a pre-construction schedule. As an example of a project we are selling, Michael Greenwald, CPA
Bob,
I can not tell you about the pre construction cost requirements but I can tell you this, you should be in country at every phase of your construction. If you are here it will greatly cut your cost.
Yes, you will probably tell me that you trust your builder, that is what most people say that end up either paying more then was projected or having inferior materials used in the construction.
That happens in the US as well. It is not just something that happens here in Costa Rica. Supervision of your construction is a must. If you want the best job done at the most reasonable cost.
Learning what we have learned in Costa Rica, if we ever build another house in the US we will supervise the construction. Every brick or stick.
The best to you and your new adventure, we love Costa Rica.
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