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All we can do now is pray and hope that the Ticos will vote CAFTA down. If CAFTA is enacted the price of everything will go up (utilities, telecommunications, insurance, medicines ect). Workers rights will not be able to be protected as they have in CR and environmental pollution will go up. This is the most frightening thing for me right now and will make the difference on whether I can live in CR or not. As far as the duty on cars what I have heard is it will have nothing to do with that and that the duties will remain on vehicles. As many have stated above this is a deal for big business and corporations, not for the people. Presidential hopeful Ron Paul put it quite wisely when he said that CAFTA was not free trade at all and if the US really wanted free trade then all they had to do is remove tariffs. Now they give us this damn 2400 page document that needs to be analyzed. The people who have researched it have found that this is a very bad agreement (University of Costa Rica and others). Even the Catholic church disagrees with it. Just a look at over 10 years after NAFTA was enacted is enough to convince most people that this is not a good deal. I am holding my breath to see what happens in October. If it passes, I suspect many baby boomers and other expats may be looking to other affordable places to retire. As a gringo I tell every Tico I know or meet about CAFTA and urge them to learn more about it. Our only hope is that people will at least know how this will effect their lives and then hope that they get out and vote this out.
Here is a copy of a article written by Garland Baker on Title Insurance. Thought it may be of help for some of you. One piece of advise he gave me is don’t buy title insurance unless you want to throw your money away. I was already in the process of getting insurance through Stewart Title but decided against it. One question to ask is what has title insurance done for anyone on CR? Has it protected anyone in the past? If the answer is no then you have your answer
11/27/06
Categories: Property and Real Estate, Property Protection
Title Insurance Here Can Cause MisunderstandingsSkeptic’s view of title insurance – an insurance policy stating not allowed, not covered, no way, no how
By Garland M. Baker
Special to A.M. Costa RicaIs title insurance legal in Costa Rica?
An Instituto Nacional de Seguros ruling Sept. 29 says that title insurance was not legal in this country but that now it is and has been since July of 1997. However, insurance officials say the legality could change in the future.
The decree from the legal department of the insurance monopoly explains title insurance is not insurance but a guarantee or a bond. This finding is a flip flop of the insurance monopoly’s last ruling in 1976 that said title insurance is an insurance and that no company in Costa Rica can sell it except for the monopoly known as INS.
The national insurance company became a monopoly with law No. 12 of Oct. 30, 1924. Only INS can sell insurance.
INS further stated that title insurance is an Anglo-Saxon creation and is not necessary in Latin America or Costa Rica because Roman law governs Latin countries. According to INS, the Registro Nacional and licensed public notaries make property transactions safer than in the Anglo world like the United States.
In 1997, a representative of a Stewart Title Guarantee Co. asked INS for a new analysis because the company wanted to sell a product called “Guaranty of title for land located in the territory of the Republic of Costa Rica.”
The legal department of INS ruled in a decree dated July 30, 1997, that a title guarantee is not regulated by the monopoly.
The legal opinion said Article One of the Law of Fidelity Insurance of 1931 precludes fidelity guarantees, also referred to as fidelity insurance, from the insurance monopoly.
In other words, warranties and guarantees of all types are insurance but excluded by definition from the domain of the national insurance monopoly.
The fine print goes on to explain that a title guarantee is really a bond of fulfillment and not an indemnification.
Most people in Costa Rica believe title insurance is an indemnification. This is incorrect because indemnifications cover unknown futures losses where title insurance is to cover something from the past.
The cornerstone of title insurance in the United States is the chain-of-title. Chain-of-title means the history of all of the documents that transfer title to a parcel of real property, starting with the earliest existing document and ending with the most recent.
Different variations of title insurance exist around the world. However, it is principally a product developed and sold in the United States. Title insurance protects an owner or a lender against a financial loss in real property due to title defects and other issues.
Title insurance gets a bad rap in the United States because creditors require it to protect lending interests and force borrowers to purchase it even if they do not want it. Many believe it is overpriced.
Legal regulators criticize the market because it is full of commission schemes and kickbacks. The industry mimics other business structures paying high commission to brokers and/or resellers. Affiliated business arrangements attempt to legitimize kickbacks or commissions to brokers, real estate agencies and attorneys.
Affiliated business arrangements exist in Costa Rica too, and that is why almost everyone is hit with the “buy title insurance” spiel when purchasing property here.
In Costa Rica, title insurance is not necessarily insurance over the title of a property but legal insurance to help pay the legal bills to protect the title of a property.
In theory, title insurance according to the INS ruling guarantees one’s right under Article 1038 of the country’s civil code. Many factors can limit a payoff. Knowing the “what is not covered” is more important than knowing “what is covered” with any policy.
Is it worth it? Title insurance is full of hype and it is not the same kind of policy as most North Americans purchase in the United States. Read the fine print and understand what the warranty truly guarantees in Costa Rica. Good homework and due diligence can save buyers the additional expense.
Garland M. Baker has been a resident of Costa Rica since 1972 and is now a naturalized citizen. He provides multidisciplinary professional services to the international community. Lic. Allan Garro provides the legal review. Reach them at info@crexpertise.com Baker has undertaken the research leading to these series of articles in conjunction with A.M. Costa Rica. Copyright 2006, use without permission prohibited.
Simon, I am not sure what your obsession is with the Clinton administration but I dont think that anyone else is drawing any kind of connection as to what any of this has to do with Paragon Properties other than attempting to divert the conversation away from their incomplete projects. I dont like Clinton any more than I like Bush but that is besides the point. Please go to a political board if you want to talk politics or seek help if you fail to realize you are off topic in this forum.
Good news people, the thieves have been run out and my peon will return to the farm on Tuesday so the problem has been solved. I appreciate all of your input on this. One of the reasons I just did not cough up the money to take them to the Refugio is because I did not know how long it would take to get another peon to stay at the farm. Really glad I did not take them to the Refugio now because they will have a home again on the farm with the worker there.
David, Have you dealt with Avis in Costa Rica? 200 per week is not bad at all. I would be interested in what kind of vehicle was rented and what your experiences with this company are. It is not real fun breaking down in the middle of nowhere and trying to find somewhere to walk to that has a phone. Not that big of a deal when you break down near the city but if you are driving back dirt roads and break down this can be a major problem. Even if you rent a cell phone often there is no reception. Thanks for everyones input on this.
David, I totally agree with you. George certainly does have some information to offer expats. I did not mean to imply that he did not. Many other expats have a ton of information as well and you can pick their brains for free. There are books, info on the internet, and just going down and talking to people you can find out alot on your own without spending a large amount of money. Like I said before I have met people who have enjoyed and gained knowledge from Georges tour and I would not discourage anyone from taking it if that is what they want to do. I just also urge them to keep a open mind and listen to what everyone has to say and come to their own conclusions. Also I would not just fall into dealing with one realtor and would explore all options available prior to making a purchase.
The dogs are not guard dogs by any means. They are smaller (about thirty pounds max). They were not my dogs. My peon had the dogs and left them on the property. I am not a rich gringo like many of you. 115 dollars is alot of money for me right now. Yes I have a finca in Costa Rica which I am still paying for and stretched to the limit to make this happen for me. I am not saying I am going to abandon these dogs and obviously I am concerned about doing the right thing or I would not even post here. I may end up paying the refugio to take them but want to explore all alternatives first. Also I dont know how soon I can get a new worker on the property that would be able to care for them. If it comes down to having to pay the refugio I will do that.
Why do you say that about Michael Dodson? I have dealt with him and had nothing but good experiences. He knows the area well and has been there longer than any of the other Realtors down there. Again the bottom line it is not who you deal with that matters if you have the right atty to close the deal for you. If you find a property that fits your needs from any of them that is what matters. You cant depend on any of the Realtors to look out for your interests. I am curious why you would not recommend Michael Dodson.
Still looking for a good rental car at a good price. As stated by others above dealing with the lower priced options have not worked out well. I just got back from just a ten day trip and went through three cars from a low priced option. Had bad experiences with another one of the 35 dollar a day deals. I have had great luck with National however as stated above they are expensive. I will pay the price though for longer trips around the country and continue to look for a good cheap option when not traveling too far from the Central Valley. Roads are tough on cars in CR but I have found that you do get what you pay for in Rental Cars in CR. I would be happy to hear from anyone that knows about a good cheap rental option for a good 4×4 that runs well. What I have done with National in the past is drive one way to the Osa Peninsula and drop the car off in Puerto Jimenez for a fee and fly back on Sansa. Worked out real well. Their people were right on time, easy to deal with and overall no problems at all with their vehicles after many years renting from them.
I just got back from CR and there was a commercial on advertising that the Caja would be offering a additional policy which would allow you to get care from a doctor of your choice. Not sure of the details but would like any information on this from any of you that are down there. Thanks for all of your comments and input. After speaking with many folks during my trip in search of more information I have pretty much come to the conclusion that the regular Caja insurance for extreme emergencies should be sufficient and paying out of pocket for regular visits. The INS policy did not seem to do much for us since they will not cover preexisting conditions. Also as Maravilla correctly points out the price of care is not as bad as what I had originally thought. I talked to several people who went to CIMA or other private hospitals and paid very low price for significant injuries requiring hospitalization for more than a week. The problem for us is that it appears that residency is being held up a long time right now due to the govt not knowing what they are going to do with new laws ect. Knowing Costa Rica it is no telling how long they will take to sort out that mess. If anyone has info on the new Caja plan they are advertising, please let me know.
Right On Maravilla!! The Mercury vaccines and medication they are giving our kids for everything from ADHD, Depression ect are making the pharma companies rich but taking the lives of our people here. We are all paying the price for the evils of these people. You are right in that as more gringos move to CR violence will become more of a problem. Also the influx of others from other countries have brought their customs of taking care of things with violence. Violence is most definitely not a Tico value where the people would rather tell you yes than even argue with you. However, the younger generation continues to have more and more influence from these outside sources and different customs and values.
I had contacted Paragon several years ago and decided against dealing with them due to the talk about lack of completed infrastructure and nightmares in CR about developers starting projects with proposed infrastructure. They sell the lots and then move on. Then you are left with a piece of land with lack of roads, electric, water, septic ect. The legal process in CR makes it near impossible to get anything done about getting ripped off. Watch out for yourselves people because no one else will. Also after researching Paragon they have a bad history in Florida with a nightmare of a development in south Florida called Lehigh Acres. This is one of the most poorly planned communities in the state. If you deal with Paragon or any others in CR watch out for yourself and take everything at face value. If they say there will be roads ect just assume that it may or may not happen. If you still want to roll the dice go ahead but dont be surprised if things dont go the way people tell you they will.
Jerry, I have not taken Georges tour but have met several people who have and were happy with their experience. I have met George and he seems like a nice man. I own property in Puriscal and have found that the real estate business is a dog eat dog world down there. Most every realtor will bad mouth the others in town that they do not do business with. I know George works with Frank Long who I have also met and seems like a nice guy. However, I strongly urge that if you are interested in purchasing property in CR that you see what everyone has to offer in the area. Take what everyone tells you with a grain of salt because often they are looking out for themselves more than they are for you. Things are different with real estate in CR. You cant just go hire a realtor in CR and expect to see everything that is offered in the area. Spend a few days with every realtor in the area, talk to the locals ect. See what everyone has to offer. Dont listen to the BS from any of them. When you find the property that you like for the right price(negotiate price), have it researched at the Registro by a trusted Atty of your own(do not use realtors atty). This is a conflict of interest. Do yourself a big favor and purchase Scott Olivers How to buy real estate in CR without loosing your camisa. It is the best book out there to help you get through the mess they call real estate in CR and help you avoid making costly mistakes. You can find alot of information on your own by talking to people, doing some research ect. George most likely is no more of a expert than anyone else that has been in CR for less than 10 years. I am not saying he does not have anything to offer. I am sure he does and he seems like a nice man. Just watch out for yourself because no one else will. Ask lots of questions and take answers with a grain of salt. Speak with as many people as you can, do as much research as you can on your own, and hire a good atty who will look out for your interests and knows about researching properties ect. Just my two cents. Also if you need a place to stay in Puriscal check with Bob and Patsy at Las Alturas De Puriscal. They have a couple of cabins and rooms for rent at very reasonable rates. Also super nice people and good friends. I do not want to discourage you from taking Georges tour by any means. I just want to warn you to watch out for yourself when getting into the real estate thing down there and see what all realtors have to offer no matter what the others say about each other. (check with Miguel Castro, Michael Dodson, Guy and Rosa, Frank Long, and any others you find in Puriscal). If you are interested in Grecia area check with CR Home. I know more about Puriscal than other areas. If you need property researched you can check the Garland Baker with Costa Rica Expertise or find another reputable person of your choice. Hope this information helps you.
Thanks for all the information. I have a question about paying a higher premium for INS to cover preexisting conditions. Please let me know where you got this information and how to obtain coverage. Unfortunately, my wife has multiple medical problems and must have some kind of coverage until we can get Caja coverage.
Cheapest rates are normally on Martinair out of Orlando Florida(usually about three hundred round trip). Right now American Airlines is offering 98 dollars round trip from Miami Florida through 11/15. Spirit also has good deals out of Ft Lauderdale. Depending on where you are located you may do well getting a flight to Miami/Ft Lauderdale/Orlando and connect with American or Martinair.
