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I just came back from a property seeking adventure in the jaco area north and south and south I will not mention names people are selling houses,you can see,feel and touch them but guess what? You cant buy them because they dont have all the permits!! Being a licensed realestate and mortgage person for 17 years I fortunately know what to look out for and these people try to talk you out of using title companies and make you promises on permit times and try to get money from you. Well “look out” god only knows how many people have fallen for this. Unless you see the catastro recorded copy and have a title company review everything before you give a developer or builder dime one you are playing the lottery not buying a house.
I also spoke to another so called developer who was looking for money in advance.
I am typing this because this kind of behavior should be prosecuted as it would never be allowed in the states and the government should dig up these properties and make these people have the necessary permits and a clear title available to a perspective buyer before they can even make the properties available for sale.Being a professional The purpose of my post was to warn perspective people about such actions of potential transactions to avoid problems from my experiences any hopefully if enough people start posting and reporting this stuff it will make a difference. I do not as a professional want to start a finger pointing or witch hunt as this should be dealt with by authorities. If you want to email me your phone number I would be happy to discuss the issues.
my email cookterry@sbcglobal.net….rather not put phone # on the line
but I have a very good reason for askingI agree about not giving money up front but most developers are asking for a deposit on the property then payments spread over 4 stages…this has been my experience.
Sometimes it’s difficult to tell the bad apples!
Any recommendations?
I am a realtor and land developer in the US> I understand their reason for a deposit, to find out if you are interested and have the financial $ to follow through. However, I do not think it wise to send $ to someone you don’t know and have not researched. I own property in CR and love the country. I recommend going to the property without giving a deposit. If they are so confident that their development is the best then they don’t need a deposit.
JFRemember unlike the usa you do not have the safeguards that prevent a builder from continuing a project without meeting city and state regulations and guidelines designed to protect the potential buyer.
You can always escrow money with a title company so you are protected and you have strong backing for legal recourse and safety.A builder can also create a draw schedule with you which can be paid as the property is completed in stages and receive the money from the title company. Try to do as much homework as possible and again talk to a title company and their lawyers so if you have any risk that makes you uncomfortable then just dont proceed. You cannot have the same mentality as the usa in costa rica but if you dot all your I’s and cross your t’s you will know whether the risk is too great.It would be interesting to hear from you what companies did not have escrow accounts set up for buyers and there deposits. I have found that most in the area you refer to do, having permits finalised is another issue. Again with this the big one is from SETENA as it can take 6 months for full approval if all things go smoothly which never reall happens in Costa Rica to begin with.
Sir, I never said a builder did not have escrow accounts set up to hold a persons money,I said they were trying to sell a property representing it to have clear title and close when in fact they did not have a clear title situation and could not sell the property because a title company could not clear it as permits were not available which was not represented to me,even though they were ready to accept money from me and not in a position to deliver,got it?
So please provide us with the names of these developers that state land is fully titled and can be delivered and closed on, when this is not the case. This could be very helpful for the less educated of us. However I can tell you here in NYC we do sell condo’s pre-construction(at a discount)before lets say a c of o is issued. There are certainly many risks involved buying this way and one must way the risk/reward ratio in doing so. And even here there have been instances of a developer going belly up before completing the project and if bankruptcy was declared people losing deposit money. I am confused because you state they have no clear title, but telling potential buyers they do? How do you know? Have you checked the Folio Real #? My point is are you speculating or do you have absolute proof…Certainly anyone buying land or a condo anywhere should have an attorney complete due diligence.
Lotus…
You hit the nail on the head with your last sentence….have the attorney complete the due diligence…I have found that if you put it in his/her hands…all the questions are asked and answered…then you won’t get as upset and angry as the thread starter appears to be….we have done quite a bit of preconstruction RE in palm beach and have a fully permitted project in CR. with condos obviously you cant close because the building is not there or done. with land its there but for the most part why would anyone want to close until infrastructure was delivered? We commenced construction a little over 3 months ago and we believe that home construction will commence by end of 1st Q 2008 but havent delivered title yet because our clients know the benefit of the free money (24 months no terms or interest). some good questions to ask pop up here all the time but try these. Where is your water source? What kind of power do you have to the site (single phase, three phase, distance from generation)? What have you done as developers to give back to your local community? What is your relationship with the local government ( mayor, police etc)? do any Costa Ricans own in your project? Checking Folio#s wont help. Most catastros arent submitted until closing to avoid tranfer fees. Knowing that the subdivision is fully permitted is the best hedge.
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