Making Wise Real Estate Decisions in Costa Rica
The Buying Process
Some aspects of a real estate transaction in the U.S. and Canada are the same here in Costa Rica; an offer is presented and once accepted the buyer opens an escrow account and deposits the earnest money. However this is where some challenges inherent to Costa Rica can arise which is why I urge you to find an experienced real estate person and an attorney who truly specializes in Real Estate law. Regarding the former you can find my video about “Finding Exclusive Buyer Representation” in my video library. Just scroll down under the Helpful Resources tab. As for finding a great attorney I can give you my very best reference at any time. And FYI this is also important when entering rental agreements!.
Like in the U.S. this money is fully refundable during the Due Diligence period which is established in the contract. During this timeany number of items are researched concerning the subject property; proof of ownership, clean title, unpaid property taxes or HOA fees and any other encumbrances. Unlike in the U.S. only a Costa Rican attorney can create the final Purchase & Sale Agreement. Hereafter it is the job of the attorney to perform the due diligence process in a timely manor or an otherwise simple transaction can turn into a nightmare.
One significant difference in buying real estate here is the escrow process and the closing costs. Regarding the former the process of verifying the source of your funds can be complicated. I use one and only one escrow company because their guidance during the income verification stage simplifies the process immensely. Regarding the latter, there are many regulations in Costa Rica that result in significantly higher closing costs for buyers than is customary in the U.S. and elsewhere.
Types Of Titles and Ownership
Generally speaking securing a clean title here in Costa Rica is smooth and certain. However there are some specific instances that warrant special attention. That is where a truly experience and honest real estate professional, and more important, an outstanding attorney who specializes in real estate to investigate every aspect of the title relating to the property you want to purchase. As I do not want to step outside my area of expertise please enjoy the following video interview with my attorney of choice.
SPECIAL NOTE: All videos on this website are in production phase. and won’t be loaded until the end of January 2024. I do apologize!
Finding A Qualified Real Estate Professional
Shockingly Costa Rica has absolutely no licensing or training requirements for people to practice real estate. There are no ethical standards and there is no oversight, or accountability by any entity. Unfortunately this opens the door to highly unethical practices that can bring great harm to a buyer. Having served on my local Realtor Board of Directors in the U.S. as well as the Realtor Ethics Committee over 304 real estate professionals in my region I am not shy about promoting my services because I care greatly for people and I will do anything in my power to safeguard their funds and to prevent them from experiencing the hardships that many Expats have experienced when buying real estate in Costa Rica. In any case if you are looking to buy outside of my market area here in Costa Rica I am happy to help you locate a reliable person to assist you. For more information on this click here for a video I produced covering this topic (LINK TO COME SOON!!)
Given the effort a good real estate professional will exert during the search phase and especially during the negotiation phase of the proces I urge you to give that person your loyalty from beginning to end. PLEASE do not play games by having more than one person show youdifferent properties or to write your contract. Not only does this represent a disregard for their time and efforts, when a buyer begins calling the brokers who have properties for sale they will inevitably pay more for the property and receive far less protection during the contract negotiation.
Commissions & Fees
Like most North American markets buyers do not pay any commissions or fees for real estate services. The only exception I make is when a client is looking to buy something outside of my region and they don’t feel comfortable working with anyone but myself. Under these circumstances I am compensated for travel expenses and usually require a daily fee and a small commission with the transaction closes.Other than this exeception you can expect the seller to pay all commissions and taxes associated with the sale (MAKE CERTAIN that your contract does not include a clause for you to share in any of the seller’s fees).
Searching For A Property
Unfortunately Costa Rica does not have a Multiple Listing Service website (MLS). This places an extremely time consuming task on your real estate professional which is another reason I emplore you to use only one agent. As an example I often have to search 10-20 web sites to unearth the best opportunites for my buyers. Making things even more complicated, dozens of properties are not listed anywhere on the internet. To find them I have access to some exclusive realtor chat groups where I can fleece to flush out some excellent properties the public has not access to.
If you want me to begin searching for a property for sale or for rent it is best that we set a time to meet by Zoom or Whatsapp so I can accurately identify your wants and don’t wants. My number is 506.8886.0337 and my email is steve@c21puravida.com. Additionally you may this video highly informative; https://youtu.be/wNtWqNPPxko
Safety
Apart from the western port city of Puntarenas and the eastern port city of Limon, violent crime in Costa Rica is extremely uncommon, especially against foreigners. However as in any parts of the world, hanging out in bars or simply passing them by during the late evening and early morning hours can get you into trouble.
The lack of violence aside theft via home break-ins is not uncommon for those living outside of a gated community, especially for For Expats. For this reason most foreigners purchase a property located in a gated community where 24/7 security is provided. However this is only a GENERAL COMMENT AND NOT THE RULE. There are in fact thousands of Expats who own properties located up in the mountains or in rural areas. Therefore if proper security measures are taken chances of theft can be greatly minimized. If you want to meet online I can provide mre details.
Condos, Homes & Villas
There are a variety of properties available in Costa Rica. Some are gated communities that are solely occupied by homes or villas while a fair number are condominium developments. Regardless, nearly all of them provide 24/7 security and most of the newer developments have walking paths, yoga pads, a gym, one or more swimming pools, an air conditioned space for remote workers who don’t want to work inside their condo all day and many other attractive amenities. To offer you a glimpse of some beautiful properties available in Costa Rica I made the following video for you to enjoy!
SPECIAL NOTE: All videos on this website are in production phase. and won’t be loaded until the end of January 2024. I do apologize!
Luxury Properties
Costa Rica has hundreds of extraordinary properties for those seeking a luxury purchase. It would be highly beneficial to set up a meeting with me via Zoom or Whatsapp so I can gather in great detail what your dream property would look like. Thereafter I can put together a list of prospective properties for your consideration.
HOA Fees
Moat subdivisions and developments monthly have monthly HOA though some stand alone homes do not. Fees run as low as $100-$200 on older developments and in the $250 to $375 range in the new developments and even much higher for penthouses, beachfront and other luxuary properties.
Renting Your Property
Themajority of residential communities in Costa Rica allow home owners to rent out their properties. Of those that do rent their properties the majority contract with a property manager and may employ a model that focuses on long-term rentals, Vacation Rentals or a blend of the two (this can be a highly successful strategy).
While I do handle long term rentals (for landlords and tenants) I cannot adequately stress the need to find an excellent property manager. Like every professional field I only work with one property manager. They are honest. Endlessly helpful. Excel at marketing and maintain their client’s property maticulously. Please allow me to introduce them to in the following video.
Paying Taxes On Rental Income
With regard to reporting income it is my experience that a property owner can either wire their sales directly into their U.S. bank account (therefore being subject to IRS tax reporting) or you can open a bank account here in Costa Rica and have the money deposited locally. I am told the tax here in Costa Rica is a flat tax of only 13% based on gross revenue (there is no need to track expenses or depreciation). Obviously it might be wise to discuss the pros and cons with your local accountant and/or a Costa Rican accountant.
SPECIAL NOTE: All videos on this website are in production phase. and won’t be loaded until the end of January 2024. I do apologize!
Beachfront Properties
There are some very unique title issues associated with 95% of oceanfront properties in Costa Rica. Unlike some proerties described as “Beachfront” these ocean front properties can have grave consequences without expert guidance. To clarify properties described as “beachfront” are those that border a road separting their property from the beach itself. These tyically are treated like any other property and come with no concerns. Allow me to provide the following video interview with my real estate attorney to explain things further. SPECIAL NOTE: All videos on this website are in production phase. and won’t be loaded until the end of January 2024. I do apologize!
Purchasing Land
Transactions involving land purchases can be smooth and easy are they may have some significant issues that must be identified. Obtaining clear title aside proof or “water rights” is essential, otherwise you cannot obtain legal building permits. Like elsewhere in the world researching common line easments and/or legal access to properties is a must. I LOVE searching for lots as well as large parcels so please feel free to reach out if you have your sites on buying property.
New Home Construction
Having built several homes for myself and having overseen more than 30 new construction projects, I am a huge fan of new construction! Nonetheless some of you may have heard or have experienced nightmare stories when pursuing a new construction home. Like eslewhere, Costa Rica has no shortage of incompetant and/or dishonest builers. This being said I work with only one builder who has a twenty-year relationship with a major developer in the region (they also build nationwide). They have built custom homes all over the country as well as more than $200 Million dollars worth of major developments. They are honest, excellent communicators and do not cut any corners. They also build on time once the planning and permitting process has been completed. To learn more I encourage you to provide the following video interview with my builder. SPECIAL NOTE: All videos on this website are in production phase. and won’t be loaded until the end of January 2024. I do apologize!
Farms & Sustainable Living
iA number of Expats coming to Costa Rica want a large parcel of land for privacy, most of who also want to develop a sustainable lifestyle. Whether generating electricty from a stream on the property or producing any number of fruits and vegetables or even establishing a Talapia farm. My friend and colleague Peter Van Hussen is the leading authority on farming and sustainable living in Costa Rica. Here is a video offering you his insights and experience;
SPECIAL NOTE: All videos on this website are in production phase. and won’t be loaded until the end of January 2024. I do apologize!
Businesses For Sale
Whether you are interested in owning a hotel, restaurant, tourism company or a commercial rental property, Costa Rica offers many, many such opportunities . My colleague and friend Peter is one of the most knowledgeable real estate professionals in Costa Rica. Here is a VIDEO INTERVIEW giving you some of his insights and recommendations; SPECIAL NOTE: All videos on this website are in production phase. and won’t be loaded until the end of January 2024. I do apologize!
HOA Fees
In many subdivisions HOA fees run as low as $100-$200. In the new condo developments they run in the $250-$350 range and beachfront properties can run significantly higher. If this is a concern please indicate such when you submit your request for a property search.
Featured Properties
The following properties may or may not be current listings at the time you view my site. The goal is for you to get a general idea of market prices. If you have interest in any of them or want me to create a list of current properties for sale please reach out to me via email (steve@c21puravida.com) or Whatsapp (506.8886.0337).
How Can I Help
Apart from the resources I’ve discussed here be sure to click on my page called “Helpful Resources” where I provide informative videos on a broad selection of topics apart from real estate. Here is the link; Helpful Resources
Property Search
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