Closing Costs

[mustardgirl]

We are buying a house in Atenas for about $177,000 our Realtor says closing costs will only be 1% for attorneys split in half with buyer – Our costs only $885 – Owner is already a Corporation

Does that seem right? any other costs? In the states it would cost 5K
Feedback appreciated

[GreciaBound]

Yes that is all true. I had a similar and satisfying experience with Isabelle last July. Make sure you get a recent survey, all ask for your documents to be translated and delivered to you at closing…may be a small cost for this, but highly recommended.

GreciaBound

[Andrew]

It’s on a sliding scale but the highest price on the scale is only about $60,000 so most ‘gringos’ would be buying a home above that…

You can see attorney Roger Petersen’s (author of ‘Legal Guide To Costa Rica’) informative article about closing costs at

Notary Fees.

The Notary that drafted the contract for sale and carried out the closing on the property transfer is entitled to a Statutory Fee. For many years that statutory fee has been 1.25% of the value of the transaction. However, in August of 2005 the Executive Branch approved Executive Decree No. 32493 which sets forth the new schedule of fees for Attorney’s and Notaries in Costa Rica (Arancel de Honorarios por Servicios Profesionales de Abogacía y Notariado).

The statute mandates that Notaries abide by the miminum fees established by statute. The minimum for all acts and contracts that are authorized by a Costa Rican Notary Public the fee schedule is based upon the actual value of the transaction involved according to the following minimum schedule:

Up to 10 million Colones = 2%
On the excess of 10 million Colones and up to 15 Million Colones = 1.5%
On the excess of 15 million Colones and up to 30 million Colones = 1.25%
On the excess of 30 million Colones 1%
The law also states that for acts or contracts that are complex in nature may result in a 50% surcharge from the above.

Scott

Scott Oliver – Founder
WeLoveCostaRica.com

[mustardgirl]

I thought the notary fees are paart of thelawyers 1%

[DavidCMurray]

If this property is already held in the name of a Costa Rican corporation, and if it is that corporation’s only asset, then why are closing fees even an issue?

If this property is the sole corporate asset, can the buyer not simply purchase all the stock in the corporation and thereby come to own its assets, the house and land? It is my understanding that such a stock transaction requires a carefully worded entry into the corporate books but that, since the property remains in the hands of the corporation, no record is made in the National Registry.

Or am I missing something?

Edited on Feb 21, 2007 05:40

[dhsbooker]

mustardgirl,

Here is a link that will give a breakdown of all the costs involved in closing. You can input your registered value/sales price and it will calculate for you. I guess if it is a 50/50 split it would be half the cost? http://www.costaricalaw.com/LEGALNET/real_estate_law/closecost.php

[Gitchesum]

David,
you’re correct…it’s not an issue, you don’t have to pay for transfer fees or stamps…only for legal fees to transfer the corporation…of course if it’s a consession property you can’t get title insurance.

[mustardgirl]

Thanks for your imput- Isabelle has been great.
I was told I have to be present at closing
You too?
You live in Grecia – were you in an auto accident?

[Author]

Posts