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I would like your thoughts about this issue.
I looked at some property that was advertised as having underground electrical wire, water, internet access, fenced in with gate and guard, ponds for fishing and hanging bridges with gazebos for get togethers.
When I viewed the property, I was again told about the underground wire so as not to “obstruct any views”. I made a good faith payment with the remainder due the end of the month.
Now that I’m here, the water system is being designed by the owner and is a gravity feed system. He has designed a system and tank to hold the water without having the architectural plans that would indicate the needs of each home to be supplied.
I don’t know about this sort of thing, so is it possible to just guess at this?
The main issue at the moment is that there is no electricity. When I was told about the underground wires, I believed that that was what I was getting and that I couldn’t see it because it was buried!
Now, after many confusing and frustrating conversations, the developer has stated that the electrical problems are the result of ICE or an electrician who “didn’t know what he was doing” or any number of people that might have been involved.
Now, I hear that the electricity will be installed and the wiring will be strung on trees. I have spoken to an architect and builder who had dealings with this man and both said that he has been given information as how to complete some of his projects but usually prefers to do them his own way which has caused subsequent problems.
The other amenities listed above: 1. fenced in secure property consists of 1 or 2 strands of barbed wire most likely installed by adjacent property owners to keep their cattle secure, 2. guard 24/7 is a young lady who lives in the little house at the gate. She does the housekeeping for the developer – therefore not at the gate. 3.
No ponds, no bridges and the gazebo is a dilapidated wooden structure that may fall down any minute.
Like I said, the remainder of the payment is due at the end of the month and I have no intention of making it…but what now?
Can he be held legally responsible for providing what he said he was providing? Or do I just chalk it up to a learning experience, forfeit my money and run???
It would behoove you to hire one of the lawyers recommended on this site. Lawyers in CR cost a fraction of what they do in the US and the cost would have likely saved you more than their fees. If you signed a contract, which was likely in Spanish, how do you know what you signed up for? Seems to me you are at a serious disadvantage and your scenario is not uncommon. As a rule, never perform a real estate transacation without an attorney and any purchase should be made in the name of a corporation (S.A. – Sociedad Anonima in CR).
I did have an attorney who spoke perfect English, the contract was in English, and the purchase was made in the name of a corporation.
My recollection of Roger Peterson’s “Legal Guide to Costa Rica” is that contracts here are only valid if written in Spanish, so that may be an additional obstacle.
That aside, the problem lies in enforcement. You may have a legally binding contract and all the facts may support your position, so getting a judgement may not be too great a problem. Enforcing such a judgement could be a very different matter, however.
I wonder if, at this point, paying off the obligation might not just be throwing good money after bad. I dunno . . .
Some questions would be:
Did you use a ‘reputable’ lawyer?
One that was recommended by others, such as on this or other popular forums frequented by potential or those ex-pats already here?
Did you ‘knowingly’ use the lawyer that the ‘seller’ or ‘developer’ also used?
Have you already discussed the possibility of suing with your lawyer?
With the ‘developer’ concerned?
Are there other ‘dissatisfied’ potential/property owners involved?
If so, do you think they would also ‘contemplate’ suing this developer?
Was this a high profile ‘Gringo’ developer that advertises on websites that specifically targets English speaking people?DAVIDCMURRAY, I don’t understand what you wrote “I wonder if, at this point, paying off the obligation might not just be throwing good money after bad” since “sunnysadie” has stated that “…the remainder of the payment is due the end of the month and I have no intention of making it.” Do you advise her just to let ‘matters drop’?
Also, has any other forum member came across this statement/rule that say “…contracts here are only valid if written in Spanish”?
When we purchased our first property here, the ‘agent’ told us “…that there was indeed power to the land”, only to find out later that this was false. And that it would cost us many thousands of dollars to get it, if indeed it was even proved possible.
Good luck and am sorry that someone else has been ‘ripped off’ by a smoother talker.
You got me again, costaricafinca. Peterson’s book says that contracts may be in any language.
And yes, I was concurring in sunnysadie’s decision not to make the final payment.
From my experience, contracts can be in any language, but whatever goes to the public registry has to be in Spanish. Private contracts in other languages have to be translated when it gets to fight legal issues.
The mentioned case is not a single case, many developers get into financial problems and are not able to finish their projects, and the first lot buyers are those who are waiting for years in order to get their amenities (pool, club house, security etc.), if at all !! Buyers have to understand how a development works. The developer buys a big junk of land (often with a mortgage) and off course many of them do not have the cash money to fully develop it immediately. This money comes in from selling lots upfront. The more lots are sold the faster the project gets completed. Due to greed (overpriced lots), and now the economic crisis, many developers are sitting on their land without selling anything. Or cut back expenses by putting powerlines on poles instead of underground, blaming it on ICE or the contractors. Other lot buyers are trying to find their water connection and then find one single pipe sticking out of the ground for 25 lots !! My advise is, if somebody buys a lot on unfinished development property, put every single detail in the contract (underground power and phone lines, paved roads etc.), including a decent time frame (pool, clubhouse, roads, security completed and provided in 12 months !!). Don’t buy undevelopped land paying the price of developped land. Hold money back and pay the balance when the project is completed to your satisfaction. Or negotiate more land for the same amount of money in case the development gets stuck, do whatever you feel happy with. But do it in writing, in Spanish, and have it registered !! If the developper refuses to sign, then don’t buy !!Maybe some developers do not like what I am writing, I am a realtor and my opinion is that realtors represent not only the seller, we also want our buyers to be happy with their purchase and with our services.
Does a concept similar to “escrow” exist in Costa Rica? Or,can you through the contract specify “progress payments” contingent upon those itemize issues being completed?
I’m just getting started in my learning process, but from the books and posts I have read the Real Estate market in CR is a dangerous reef that one needs to navigate carefully. I can see where it would be easy for new residents to trust based on the protections they have in their home country.
I don’t know about escrow, John, but contracts here, like contracts elsewhere, can contain just about any provisions that are legal.
What is difficult (and frustrating) about Costa Rica is that the legal code is different from what we’re used to in the U.S. Things that you and I might expect to be interpreted in our favor might or might not be here. For instance, it’s generally true that if someone steals something and resells it, if the ultimate buyer is not aware that the property is stolen, s/he has a right to keep it regardless of the true owner’s legitimate interests. Try that one on for size!
Another frustration is that, while there are many good, well-intentioned laws on the books, enforcement is lax or impossible. There are great environmental laws, for example, but little enforcement because there aren’t the means. There isn’t the money to hire the park rangers to police the national parks and ward off poachers and loggers, for instance. So poaching and logging go on. Likewise, your contract or an escrow account may, in theory, protect your interests, but how will you accomplish enforcement? Yes, you can sue. And yes, you may win. But then what?
So you need to be careful. And skeptical. And have your own second attorney check the work of your own first attorney who does not also represent the seller.
Costa Rica Land Inspections – Many folks who wish to purchase a piece of paradise here in Costa Rica may not know there is an inspection service available to help them anticipate and avoid costly problems with the property they are thinking of buying, before they close the purchase.
Many properties do not require a great deal of time to inspect, if they have been developed properly and legally registered in the Costa Rican National Registry of Property. However, there are many tracts of land sitting vacant throughout Costa Rica that are not buildable, because one of the government institutions has attached restrictions to them for one reason or another.
Purchasers need to know this type of information before closing on property. Land Inspection Reports, inform purchasers of what will be required in order to construct the structures they have envisioned on a property. The costs of construction for required installations such as, access roads, retention and security walls, potable and irrigation water supplies, grey and black water drainage systems, utility connections and foundations are determined by a properties existing terrain, soil conditions and location. Some properties require environmental, engineering and soil studies as well as topographical surveys to insure that all infrastructure and building construction is completed properly and within the Costa Rican legal and zoning laws.
During a Land Inspection, the existing terrain and type of soil is examined in order to determine the most suitable location to construct the desired structure as well as what type of construction will be required to comply with local building regulations.
Dedicated building lots that are properly registered in the national registry and located in deeded, established projects do not require extensive inspection, however overall construction costs are determined by a building lots soil, size and location.
Land Inspection Reports are commonly utilized to begin the initial architectural design and engineering work that will determine the total cost of construction.
If you’re searching for useful information about purchasing land or building housing in CR, you can click on Inspection/Construction in the Trusted Providers section in the right hand margin on the WLCR home page. Or just click on this link.
https://www.welovecostarica.com/members/department62.cfm
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