Costa Rica Real Estate Buying Land? Check the location!

If you plan to Costa Rica land, for a house, a commercial property or a warehouse, it is not that difficult to do.

According to Ms. Kattia Madriz, sales manager of La Laguna, the size is not always the most important aspect. “This is just one of the factors to be considered when estimating the value of a property, if the rest complies with what one is looking for,” she adds.

As indicated by Ms. Madriz, the most important factor is the intended use of the property. “Once this is established, the next steps are to verify its location, the availability of basic services (roads, power, water), and if it meets the requirements of a family.”

Other aspects are its position within the surrounding area: a corner, in the middle of a block, set back with a private access, if building permits are available, and if there is enough space for a garden. If the available conditions permit it, it has to have the best counter value for its intended use.

If the property is destined to a home, the area is to be carefully scrutinized, as well as the financial potential of the prospective buyer.

The documents:

Once the preliminary conditions are cleared, the property’s value correctly evaluated by a professional, it is vital that the buyer be aware of the oncoming paperwork involved.

All buyers have to access the Registro de la Propiedad (Property registry) to verify who the true owner is, and to check if there are any pending mortgages, lawsuits, and rights of way, on the title deed.

The official property plan of the registry (plano catastrado) will indicate its correct size and location, with all the boundaries clearly delineated. If in doubt, contract a professional topographer to redefine the borders, therefore avoiding future incursions by neighbors.

The buyer also has to verify the latest payments made, such as property tax, municipal services, water, power, installments in case of a condominium.

“Before making any down payment on a property, contract a professional in appraisals, therefore insuring your investment”, assures Mr. Luis Ramírez, executive director of the Federation of Costarrican Topographers.

Properties can be located in a development, in an urbanization project, a fractioning of a bigger lot, or they can be part of a condominium. In the latter case, the future owner has to be aware of certain restrictions which can be predetermined either in the Law of Condominium Property, or in the statues of the condominium itself, because all of its inhabitants are co-owners of the community areas.

The financing:

• How much can you pay? The buyer has to be well aware of his financial potential, because size and location of the property will depend on this aspect.
• How much can be financed? If financing is needed, then the various options of the market have to be analyzed (interest rates, monthly rates, length of loan, financing in dollars or colones, life or loan insurance, additional benefits, etc.), always taking into consideration that most mortgage plans only cover 60% to 90% of the total value, and therefore the remaining amount has to be covered.
• Other costs? Added to the cost of the property, there are additional costs, like: mortgage costs, bank commissions, evaluating costs, and sometimes setting up a life insurance policy.
• Legal fees? Parallel to the contract, there are other fees that sometimes are split evenly between buyer and seller (deed), or those that only concern the buyer (mortgage).

Our thanks to our friends at La Nacion – Costa Rica’s largest Spanish circulation newspaper for their permission to use their article in English.

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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.