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The comprehensive due diligence procedures that WeLoveCostaRica.com does on your behalf before recommending a real estate developer as a Trusted Developer is undertaken by the law firm of Attorney at Law – Rick Philps and Attorney at Law – Roger A. Petersen who is the author of the best-selling book ‘The Legal Guide To Costa Rica.’

Here are the real estate developer questions we ask to make sure we are only recommending experienced developers with a proven track record:

1. Does the Developer have previous experience with Real Estate Developments?
2. Does the Developer have previous development experience in Costa Rica?
3. Has the Developer retained a respectable local construction company?
4. Is the property where the project is being built free of encumbrances or annotations?
5. Are there any mortgage loans or financial obligations on the property?
6. Are the mortgage loans or financial obligations on the property more than 30% of the value of the property?
7. Has the Developer invested their own personal funds in the project?
8. Has the project passed the Environmental approval phase by SETENA?
9. Has the local Municipal government approved the Project?
10. Is the basic infrastructure already installed in the project i.e. roads, drains, electrical utilities?

To rent or buy this 54 minute video with Costa Rica Attorney Roger Petersen please visit our Video On Demand page here.

11. Does the property have an approved water supply for the project?
12. Is the property titled under the Costa Rican Condominium property law?
13. Is the earnest money deposit placed in a third party escrow account?
14. Is the Disbursement of the sales proceeds contingent upon unit construction advancements?
15. Is there any risk of a lawsuit against the master property?
16. Is the Developer capable of carrying the financial cost of the project with their own funds?
17. If the Developer defaults on the project is less than 10% of the project unit price at risk?
18. Does the Purchase Agreement contain detailed clauses addressing default issues?
19. Does the Purchase Agreement contain a clause on progress payments based on construction?
20. Are client funds being used to pay for the property where the project is located?

Our Costa Rica real estate developer’s due diligence process for WeLoveCostaRica.com includes the following:

1. A full property title search of the developer’s property, to ensure the correct registered ownership, to ensure that legal access to the property exists, and a review of the financial charges, and any other annotations, or charges on the property title. This would inform a prospective buyer of any financial charges which would need to be discharged by the developer, in order to grant clear title to the prospective buyer at Closing, and of any other annotations, or charges, which would either positively, or negatively effect the enjoyment of the property by the prospective buyer.
2. A review of the registered survey plan (plano catastro) of the property to ensure that the size of the property indicated on the property title is consistent with the registered plan, and of the existence of legal access to the property, either by the property fronting on a public road, or a registered easement (servidumbre) connecting the property to a public road.
3. A review of the Land Use Permit (Uso de Suelo), issued by the Municipality for the subject property (to be supplied by the developer), to determine the legal permitted land uses for the property.
4. Depending upon the type of development under consideration (ie.Condominiums), a review of the Environment Ministry (SETENA) Approval, Housing Ministry (INVU) approval, or Municipal Building Permit, as might be required.
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5. A review of the Developer’s standard form Purchase Agreement, in order to insure that a prospective buyer was protected through the escrowing of any deposit, or purchase monies with a third party escrow agent, until such time as the approval of any of the foregoing matters was favourably determined for the propective buyer, allowing the purchase to proceed without any undue risk to the buyer.
6. For raw land in the process of being subdivided and developed, all deposit and purchase monies would need to be escrowed with a third party escrow agent, until such time as the subdivision of the property to be purchased, could be assured, with a separate legal title capable of being transferred by the developer to the buyer at Closing.
7. If construction were to be undertaken, normally staged payments are provided for during the various construction phases (laying of the foundation, completion of the roof, etc.), where the buyer would advance funds to the developer, as certain phases in the construction process were completed.

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If you would like to contact Attorney Roger Petersen and Attorney Rick Philps please use the simple form below:

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.