Biggest Mistakes Foreigners Make When Buying Property in Costa Rica

When buying property in Costa Rica as a foreigner, several common mistakes can lead to costly problems or delays. Understanding these pitfalls and taking proactive steps can help ensure a smooth and secure transaction. Here are the biggest mistakes foreigners make when purchasing real estate in Costa Rica, along with essential tips to avoid them:

1. Failing to Conduct Thorough Due Diligence on the Title

One of the most critical errors is not verifying that the property has a clean and transferable title. Costa Rica’s property system requires checking two key records: the property’s registration at the National Registry and the cadastral survey (plano catastrado) which shows exact boundaries and measurements. Discrepancies between physical boundaries and official records are common, so relying solely on the seller’s word or visible landmarks is risky. A qualified real estate attorney should review these documents to confirm there are no liens, encumbrances, or zoning issues that could affect ownership.

2. Not Hiring a Trustworthy Lawyer and Realtor

Many foreigners underestimate the importance of hiring a reliable lawyer who specializes in Costa Rican real estate. Only a licensed Notary Public who is also an attorney can legally draft and record the property transfer deed. Your lawyer should represent your interests exclusively, conduct due diligence, verify documents, and ensure the transaction follows a proper timeline. Similarly, real estate agents in Costa Rica typically work for the seller, so their advice should be cross-checked with independent experts to avoid conflicts of interest.

3. Overlooking Utilities and Infrastructure

Before purchasing, verify that essential utilities such as water, electricity, and internet are available and functioning. In rural or undeveloped areas, utilities may be limited or absent. Understanding how easy or difficult it will be to connect to these services is crucial. For example, electricity is generally provided by ICE or regional suppliers, and water may come from municipal sources or local cooperatives. Some properties rely on septic systems instead of municipal sewage, which should be inspected. Utility costs and service reliability vary between urban and rural locations, so factor this into your decision.

4. Skipping Property Inspections

Costa Rica’s climate can cause structural issues like water damage, mold, or wear and tear, especially in coastal or rural properties. Skipping a professional property inspection can result in unexpected repair costs. Inspections should include checking the septic system, roof, foundation, and overall condition to avoid surprises after purchase.

5. Ignoring Zoning and Land Use Regulations

Each municipality in Costa Rica has zoning plans regulating property use, density, and construction limits. Failing to confirm the zoning status (uso de suelo) can lead to restrictions on how you can use or develop your property. Your lawyer should obtain and review this information from local authorities to ensure your intended use complies with regulations.

6. Relying on Verbal Agreements or Incomplete Information

Avoid trusting verbal promises or overly edited photos in listings. Always visit the property in person, preferably during different times of the day at different seasons, to assess access, climate, and condition. Also, do not rely solely on sellers or informal local contacts for information about the property or transaction process.

How to Avoid These Mistakes

• Hire a qualified Costa Rican real estate attorney who will perform title searches, verify zoning, draft contracts, and record the deed. Check their reputation and referrals are key.

• Work with a reputable buyer’s agent or realtor who represents your interests and helps navigate the market.

• Conduct a professional property inspection to uncover any structural or utility issues.

• Verify availability and ease of connection for utilities like water, electricity, and internet before buying.

• Review the property’s cadastral map and official boundaries to avoid disputes.

• Visit the property multiple times during different seasons to understand access and environmental factors.

• Ensure all steps follow a clear timeline to avoid delays and complications.

Following these guidelines will help you avoid the most common pitfalls foreigners face when buying property in Costa Rica and make your investment safer and more enjoyable.

For expert assistance and trusted real estate services in Costa Rica, visit www.cabuayrealty.com. Their experienced team can guide you through every step of the process, ensuring due diligence and a smooth transaction.