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If you’re looking for doom and gloom the US housing market offers plenty of that. The advent of affordable financing in CR has created an attractive housing market for the Latinos and foreigners as well. With Scotia Bank, HSBC and now Citi Bank purchasing Costa Rican financial institutions the competition will drive the market to its limit. The limit is difficult to envision because for many years the Costa Rican market did not offer mortgage financing and now with these major financial institutions all competing to lend money in little ole Costa Rica you will see tremendous growth in the housing sector. A downturn or correction as it’s referred to in the USA is an inevitable part of life there. Remember what it was like to get your first new car and borrow the money from the bank. I for one was honored to be accepted into the adult financial world. The Ticos are now being offered financing for cars, homes, etc at affordable rates. This economy is like any other and is driven by financial investment and borrowing power. With these new banks just now beginning to do business here the local economy is just getting started. Additionally, North American real estate investors gravitate where the opportunities are attractive. Since the US real estate market is correcting and the opportunities are limited these investors will take their money and borrowing power to the markets that offer opportunities and appreciation. Costa Rica truly is the Pura Vida! If you’re already here the opportunities are at your doorstep. But if you’re still in North America wanting to get out, don’t let the door hit you in the trasero.
Price depends on the location of delivery. CEMEX has a plant in San Rafael, Alajuela. Any of the communities near there should be priced the same depending on access to the building site. For instance, here in San Antonio, Belen the price I pay delivered is $120 + taxes per cubic meter for 3000 PSI. CEMEX (201-20000 has plants throughout Costa Rica and should be able to accommodate your needs.
Edited on Aug 03, 2007 11:51
The ideal foundation is footers, foundation walls and the slab of 3000 PSI poured concrete. Review the guidelines below and let me know if you have any questions or concerns. If you want the most durable concrete construction you can pay the additional money to have premixed concrete delivered to your building site in order to pour a greater PSI mix monolithic foundation. With the consistent seismic activity here, the only sensible solution is to construct a “floating slab”. If I were the owner of a dwelling in this area I would justify the additional expense to construct a suitable foundation to support my concrete slab as inexpensive insurance. Please review the following construction guidelines and try to understand how this “floating slab” provides the stability that is needed in a seismic area like Costa Rica.
GUIDELINES
Excavate 4′ deep trenches where footers are indicated on blueprints.
Provide 2″ x 6″‘s for forms per print.
Set forms for 8″ high and 20″ wide on top of excavated trenches.
Run 2 x #4 steel rods horizontally, equidistant, side by side 4″ from bottom of trench while pouring concrete footers.
Run stickers, using #4 steel rods every 4′ projecting 6″ vertically from top of footer.
Set 48″ poured wall frames block on top of concrete footers with vertical stickers inside of all blocks.
Attach 6′ long #4 steel rods to stickers projecting from wall every 4′, leaving 2′ protruding from top of wall to bend into poured slab.
Pour concrete in all forms or inside all blocks.
Fill inside of walls with fine sand and compress in layers to achieve a solid base and backfill around exterior of footer walls with same or clean topsoil
Compress sand inside of walls several times adding more sand as it is compressed, until top layer of sand is smooth and firm, 4″ from top of walls to accept 4″ of #57 stone following rough-in of plumbing, electric and HVAC tubing.
Dig all column pads and interior footers per blueprint and set forms as above
Run sanitary and water lines 15″ below floor, avoiding pads and interior footers.
Run water line from the tap into the area of the dwelling where the shut off valve will be installed, avoiding driveways and walkways.
Run metal conduit for floor plugs or HVAC pipes per plan.
Set forms around perimeter of footers and foundation walls and then spread #57 stone evenly where slab is to be poured.
Cover stone with minimum 6 mil polyethylene vapor barrier.
Bend #4 steel rods protruding from the top of the footer walls into the floor and connect the steel rod grid system made by attaching additional steel rods to the existing protruding from the footer walls.
Order 3000psi concrete and pump or pour a 4″ solid monolithic slab.We have now poured concrete into and over a steel grid system that connects the perimeter footings through the foundation walls and into the slab. This floating slab is structurally sound from corner to corner and will not fail from seismic activity or settling.
A homeowners association in a deeded subdivision is a legal entity that should have been included in the developers initial legal documents that should have been recorded along with your deed when you purchased your lot. You will eventually need a lawyer to record the new homeowner’s association board members that you and your neighbors can organize. This association and its board members need to be legalized otherwise you and your new homeowners association will have no legal powers to restrict or enforce any of the regulations you may want to include in your subdivision. So unfortunately at some point you will need a lawyer. Remember that all the documents that you will need to create need to be in Spanish and reviewed by the registrars in the national registry before they will be accepted and recorded. The other documents offered to you in this topic by Lotus from the USA and have no legal use here in Latin America. I have developed several condos and subdivisions here in CR over the last 15 years and remember the time involved for an inexperienced lawyer to attempt to create and record condo association documents. I eventually found and utilized the services of an experienced attorney to complete the process. I consider the time I spent with the inexperienced attorney lost time and money even though his services were less expensive that the experienced professional. You will end up getting what you pay for. Good luck!
NOTE FROM SCOTT: We will announce a new article about Tom’s homebuilding experience in tomorrow’s newsletter but you can see it at:
I am happy to share my lawyers contact info with you. He has become very popular and represents large developers now and has an additional office in Playa Hermosa. His level of service has always been consistent and honorable. His office in San Jose is a family practice with his father, brothers and sister as well as other lawyers with expertise in specific areas of law. Interlex, Carlos Echeverria Alfaro, Barrio Dent, San Jose, office 524-0717, Playa Hermosa office, 670-1165. Cellular, 830-5432. cecheverria@bufeteecheverria.com
The El Lagar Building Supply Outlets in the last year have offered me the best prices and they have many locations throughout Costa Rica. I recommend this company as they stand behind what they sell and they are happy to take returns and refund the money for unused materials.
1- Lagar Desamparados tel. 217-9400
2- Detalles y Acabados Villarreal tel. 271-9552
3- Lagar el Cruce tel. 219-1111
4-Lagar San Francisco de dos rios tel. 226-1111
5-Lagar Moravia tel. 245-6959
6- Lagar el labrador san isidro de Heredia tel. 268-8382
7-Lagar Heredia tel. 441-1818
8- Lagar San Antonio de Belén tel. 293-2626
9- Lagar Pozos de Santa Ana tel. 282-8686
10- Lagar Santa Ana tel. 282-4451
11- Lagar Orotina tel. 428-9000
12- Lagar Barranca tel.663-7898
13- Lagar Jaco tel.643-3054
14- Lagar Liberia, tel.667-0667. 6kms south of the Liberia Airport on the main road to Santa Cruz.
NOTE FROM SCOTT: We will announce a new article about Tom’s homebuilding experience in tomorrow’s newsletter but you can see it at:
As seismic activity applies to construction and the aesthetic appearance of the exterior of housing there have been related discussions. See “COVINTEC construction system experiences” on this site.
I have built condos and homes and remodeled existing housing in Costa Rica since 1992. In the course of conducting my construction business I have purchased and installed hundreds of doors. Rarely are the rough openings perfect and the standard solution is to correct the differences by planing down the wood jamb lumber and the sides of the doors if needed. It is important to order and receive properly dried rough lumber and doors in order to complete a presentable installation. Many lumber suppliers and door fabricators here are under the gun and don’t have sufficient properly dried lumber. Therefore after the wood trim has been installed in your project for a couple of months you begin to see movement in the door panels and other finish carpentry installations. Unless my client is looking for expensive custom doors in excess of $200 per unit, I can usually satisfy their needs with the selection at El Lagar. They have quality Cedro, 6 panel at $165 and Laurel at $100 and the rough lumber for the jambs is in inventory. The El Lagar Building Supply Outlets in the last year have offered me the best prices and they have many locations throughout Costa Rica. I recommend this company as they stand behind what they sell and they are happy to take returns and refund the money for unused materials. I have a list of all their locations if needed.
The Super Block product is basically an over sized block that the local tradesmen do not like because of its weight and bulk. When a mason is installing these blocks the labor is complicated by the fact that each block must be lifted on top of the previously installed blocks and it is more difficult than regular sized block. Therefore the fit and distribution of concrete mortar is sacrificed for less quantity of blocks. The width and strength of the vertical steel reinforcement rods (columns) which support the block wall system and horizontal concrete support system (headers) that will support the roof structure are much thinner and smaller. As was previously mentioned these thin steel reinforcement rods and the 4″ x 4″ poured concrete columns that will support the entire structure are marginal and in the event of seismic movement would give out much sooner that a larger vertical steel reinforced column construction system like I install in my traditional concrete block construction method. Traditional vertical concrete support columns are at least 12″ x 8″ and reinforced with six 1/2″ thick steel rods and then the horizontal support headers are at least 12″ x 8″ with a six 1/2″ steel rods. There is additional labor involved in order to assemble the steel reinforcement and install the quantity of blocks used in the traditional construction method but the tradesmen are familiar and accustomed to this method and therefore take pride in the quality of their installation so the consumer receives a higher quality finished product. For the approximate 10% additional cost involved I sleep much better at night knowing my building structures are anti seismic and do not develop fissure cracks prematurely which require much more maintenance for the owners. As was discussed in a previous posting, painting and preparation of poorly installed concrete surfaces is not only expensive but also unsightly until repaired. Since we are approximately 10 degrees north of the equator a prudent and responsible builder needs to factor in the effects of the suns rays as well as the seismic movements here in Costa Rica.
Since I am not a legal expert my original questions were presented to open discussion about Title Insurance in CR. I never give legal advice other than to contact an experienced attorney who is knowledgeable in his or hers legal specialty. I have received responses from legal experts who have offered the following information however do not want to be quoted. Apparently the Title Insurance companies carry a lot of weight in this town.
1. The CR Government does guarantee the accuracy of a certified copy of a property title extract, issued by the Registry.
The particular law that states this is Article 73 of the Public Registry Regulation. (Reglamento del Registro Publico, Artículo 73, Responsabilidad del Registro por la información contenida en las certificaciones. El Registro dará fe de la información contenida en una certificación hasta el momento de su expedición. Las variaciones ocurridas con posterioridad a la hora de su expedición no acarrearán responsabilidad alguna al Registro).
2. The law surrounding the registration of property titles in the National Registry, is based upon the presumption of accuracy of what is registered, by third parties relying on the Registry process. This principal is known as “legitimacion registral”. Article 449 of the Civil Code (ARTÍCULO 449.- El Registro es público y puede ser consultado por cualquier persona. Corresponde a la Dirección de cada Registro determinar la forma y los medios en que la información puede ser consultada, sin riesgo de adulterarse, perderse ni deteriorarse).
3. It has been interpreted by the Courts to mean that there is a presumption of accuracy of the Public Registry’s records. Likewise, in Article 34 of the Public Registry Regulation, the qualifying process in accepting Registry information is such, that only title information which is “valid and exact” in nature is accepted for registration purposes, by the Public Registry. (Artículo 34.—La Calificación. Control de Legalidad. La función Calificadora consiste en realizar un examen previo y la verificación de los títulos que se presentan para su registración, con el objeto de que se registren únicamente los títulos válidos y perfectos, porque los asientos deben ser exactos y concordantes con la realidad jurídica que de ellos se tiende. La calificación de los títulos consiste en el examen, censura, o comprobación que de la legalidad de los títulos presentados debe hacer el Registrador antes de proceder a la inscripción, con la facultad de suspender o denegar los que no se ajustan a las disposiciones de nuestro ordenamiento jurídico. Al momento de calificar, el funcionario asignado al efecto se atendrá tan solo a lo que resulte del título y en general a toda la información que conste en el Registro y sus resoluciones no impedirán ni prejuzgarán sobre la validez de éste, o de la obligación que contenga)
4. If a Notary/Lawyer conducts the correct due diligence for the property title research, no Title Insurance is necessary, as the true state of affairs will be revealed.
5. Any issue arising involving an irregularity with the title, can be dealt with by the Notary/Lawyer involved prior to a purchase of the property completing, or alternatively, the purchase offer can be rescinded.
6. If the Notary/Lawyer is negligent in such a title search, there is an insurance fund administered by the Dirrecion Nacional Notariado (Notary College), which all Notaries are bound to pay into, which would pay proven claims for negligence arising in this instance.About 18 years ago I saw it used a lot in construction in Mexico and Guatemala. They even did staircases and 20 story buildings with it. I thought it was an awesome material and I tried to bring it to Costa Rica. We did some trials with it here in Costa Rica and it turned out that the river sand is not fine enough and gets stuck in the nozzles of the spray gun when doing the plastering “repello” concrete finish. We tried making bigger nozzles but didn’t work. Years later, a developer in Heredia brought the same system from Mexico and started building a low income development with it. A year later the complaints started: the rats were eating through the walls. They had the same problems we were having with the concrete finish and probably left parts of the Styrofoam aka: expanded polystyrene (EPS), uncovered and the rats loved it. This issue was all over the newspapers back then. About 6 years ago, several importers started bringing in the system again and now do the concrete finish they do as they do with the concrete blocks, by hand. I have seen it used a lot in apartment buildings now and a lot on exterior design like the front of the Banco Cuscatlan right next to Lacsa in La Uruca. That’s all Covintec. So apparently, it works well. I don’t know what humidity does to the Styrofoam over the years, but just like drywall, most local buyers once they find out what it is and they can choose between a house built in concrete block or in Covintec, you may guess which one they’ll buy…..Ivo
THE PURCHASE HAS ABSOLUTELY HAPPENED:
Estimado Sr. (a): Nos es grato informarles que HSBC adquirió el 99.98% de las acciones de Grupo Banistmo y, por ende, de Corporación Banex. Deseamos compartir este importante acontecimiento a nuestros clientes y amigos, quienes han hecho posible nuestro crecimiento y excelentes resultados, producto del trabajo responsable y de la confianza depositada en nosotros.
El que pronto todas las operaciones de Banex se lleven a cabo bajo la marca HSBC nos permitirá combinar y unir nuestras fortalezas con las de uno de los grupos financieros más grandes del mundo. Hoy deseamos dar a conocer a ustedes alguna de la información más relevante sobre HSBC.
* Es un banco que se enfoca primordialmente en seis áreas de negocios:
o Banca de Consumo
o Banca Corporativa e Inversiones
o Banca Privada
o Seguros y Pensiones
Sus acciones se cotizan en las bolsas de Londres, Nueva York, París, Hong Kong y Bermudas. Sus más de 200.000 accionistas están ubicados en cerca de 100 países y ninguno es dueño de más del 15% de las acciones.
*
HSBC es un grupo financiero de capital internacional con sede en Londres. HSBC es sinónimo de solidez, eficiencia, experiencia, confianza y credibilidad.
*
Con la adquisición de Grupo Banistmo, incorpora cinco países a su vasta red: Ahora son 82 territorios donde está presente, con más de 265.000 colaboradores, 10.000 oficinas y 125 millones de clientes.
*
HSBC se ubica entre las 30 principales marcas más reconocidas a nivel mundial, según la revista Business Week en el 2006.
*
El Grupo mantiene una de las redes de comunicación de datos más grandes del mundo, procesando alrededor de 13 millones de operaciones por Internet al año. Cuenta con 20 millones de clientes que utilizan banca electrónica.
*
HSBC es reconocida como una institución a la vanguardia en tecnología, con una inversión en esta área de más de 5 billones de dólares en el 2005.
*
Los planes de HSBC en Centroamérica y Colombia son continuar la estrategia de negocios establecida por Banistmo y potenciar todos los negocios que sean rentables y viables a largo plazo. Con su lema “El banco local del mundo”, HSBC cree en el respeto a la idiosincracia de los países donde se establece.
*
Al 31 de diciembre de 2006 el Grupo HSBC contaba con activos de US $1.861 (trillones de dólares), un patrimonio de US $114.928 (billones de dólares) y utilidades (antes de impuestos) de US $22.086 billones.
En pocas semanas iniciaremos la integración a HSBC, y durante todo este proceso deseamos atenderlos como ustedes se lo merecen. Estaremos atentos y complacidos de evacuar sus preguntas o comentarios y desde ya los invitamos a acercarse a la sucursal más cercana, o a su Ejecutivo de Cuenta asignado.Una vez más reafirmamos el compromiso de todo nuestro personal, directivo, gerencial, administrativo y técnico, de continuar trabajando bajo los principios de lealtad, seriedad, eficiencia y profesionalismo. Así mismo ratificamos nuestra meta de continuar siendo un gran Banco, “El banco local del mundo”.
De parte de todo el personal, les enviamos un saludo cordial,
Watchdog. I have some observations about escrowing funds with title insurance companies in CR that I hope will challenge your base of knowledge.
1. Do Title Insurance companies insure future acts of fraud, which occur after the date of the policy.
2. Does the CR Government guarantee the accuracy of a certified copy of a property title extract, issued by the Registry.
The particular law that states this is Article 73 of the Public Registry Regulation. (Reglamento del Registro Publico, Artículo 73, Responsabilidad del Registro por la información contenida en las certificaciones. El Registro dará fe de la información contenida en una certificación hasta el momento de su expedición. Las variaciones ocurridas con posterioridad a la hora de su expedición no acarrearán responsabilidad alguna al Registro).
3. The law surrounding the registration of property titles in the National Registry, is based upon the presumption of accuracy of what is registered, by third parties relying on the Registry process. This principal is known as “legitimacion registral”. Article 449 of the Civil Code (ARTÍCULO 449.- El Registro es público y puede ser consultado por cualquier persona. Corresponde a la Dirección de cada Registro determinar la forma y los medios en que la información puede ser consultada, sin riesgo de adulterarse, perderse ni deteriorarse).
4. It has been interpreted by the Courts to mean that there is a presumption of accuracy of the Public Registry’s records. Likewise, in Article 34 of the Public Registry Regulation, the qualifying process in accepting Registry information is such, that only title information which is “valid and exact” in nature is accepted for registration purposes, by the Public Registry. (Artículo 34.—La Calificación. Control de Legalidad. La función Calificadora consiste en realizar un examen previo y la verificación de los títulos que se presentan para su registración, con el objeto de que se registren únicamente los títulos válidos y perfectos, porque los asientos deben ser exactos y concordantes con la realidad jurídica que de ellos se tiende. La calificación de los títulos consiste en el examen, censura, o comprobación que de la legalidad de los títulos presentados debe hacer el Registrador antes de proceder a la inscripción, con la facultad de suspender o denegar los que no se ajustan a las disposiciones de nuestro ordenamiento jurídico. Al momento de calificar, el funcionario asignado al efecto se atendrá tan solo a lo que resulte del título y en general a toda la información que conste en el Registro y sus resoluciones no impedirán ni prejuzgarán sobre la validez de éste, o de la obligación que contenga)
5. If a Notary/Lawyer conducts the correct due diligence for the property title research, no Title Insurance is necessary, as the true state of affairs will be revealed.
6. Any issue arising involving an irregularity with the title, can be dealt with by the Notary/Lawyer involved prior to a purchase of the property completing, or alternatively, the purchase offer can be rescinded.
7. If the Notary/Lawyer is negligent in such a title search, there is an insurance fund administered by the Dirrecion Nacional Notariado (Notary College), which all Notaries are bound to pay into, which would pay proven claims for negligence arising in this instance.
QUESTIONS:
1. Is Costa Rica a common law country?
2. Isn’t there only one legally authorized insurance company in Costa Rica?
3. Is a title guarantee in Costa Rica a bond of fulfillment or an indemnification?If you’re looking for a comfortable climate and a safe community to live in, check out San Antonio de Belen, Costa Rica. Here you will find all the conveniences you’re accustomed to for much less than most other communities. I have been in CR since 1992 and over the last 15 years I have had the opportunity to live on the beach in Guanacaste, in several communities around the central valley and now in a condo in the center of Belen. The climate here is very agreeable and since the sun shines most of the day it does not get cold at night. In Belen there are a variety of restaurants offering some of the best fire cooked chicken, broiled fish, Chinese, pizza and typical Tico food. The prices are lower here than in most pueblos. I eat out everyday and spend an average of 1500 colones or $2.90 for fresh cooked meals. A beer in the local bar is 500 colones or $.96 and a Johnnie Walker is 700 colones or $1.35. The municipality in Belen is very organized and keeps development under check which enables the community to stay clean. Additionally, it is one of the safest communities because it has its own Municipal Police force in addition to the Fuerza Publica and Transito officials that are present throughout the country. I walk to get everything I need in Belen and do not get stuck in traffic jambs or need to drive all over to find parking. If you want to get to know a community better, walk around as much as you can and say hola to as many people as possible to see how friendly the locals are toward you. In many pueblos it’s difficult to walk around because there is little or no infrastructure. In Belen there are handicap accessible ramps at most major intersections and ample sidewalks everywhere.
