Costa Rica Attorneys – Overcharging?

One of my investment clients emailed me last week concerned about the total amount of closing costs that an attorney was planning on charging him for the purchase of a substantial tract of land for slightly US$300K.

At first glance, the fee seemed somewhat excessive so I suggested to him
that he request the attorney to specify in writing exactly what was to be included as part of that fee.

Did his fee include all the stamps as well as the property transfer tax?

After speaking with the attorney to ‘clarify’ the situation, he managed to have
the somewhat inflated fees lowered by a full 1%.

On a US$300K+ transaction, that 1% is a cool US$3,000 which is a decent chunk
of cash for anyone… Even an attorney. (Uh! Oh! Now I’m in trouble.)

It is important to remember that the laws in Costa Rica are based on Napoleonic
Law and NOT Common Law as they are in the US, Canada and the UK.

It is therefore crucial that with every document you sign, you understand exactly
what you are signing for and you must ensure that your attorney specifies – in
writing – exactly what services, fees and stamps are included as part of his
payment.

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Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.