The buying process in five steps: the offer, the sale and purchase agreement, due diligence, closing before a notary, and the municipal property declaration.
Navigating the real estate buying process in Costa Rica can be simplified into five essential steps. Each step is crucial to a smooth and legally sound transaction. Here are the details of the process. The order and timing vary by transaction, and your attorney will adapt it to your purchase.
Step 1: Submitting the offer to purchase
| Role of the real estate agent | Negotiation and acceptance |
|---|---|
| Initial agreement. Once you have identified the right property with your real estate agent, they will submit an Offer to Purchase (Letter of Intent) to the seller or the seller’s listing agent. This document outlines the proposed sales price and basic terms, serving as the initial agreement. | Crucial terms. The negotiation begins as the seller reviews the offer. Once both sides agree on the sales price and essential terms, the offer is accepted, marking the start of the formal transaction. |
Step 2: Drafting the sale and purchase agreement
| Involvement of the Costa Rica attorney | Ensuring legal clarity |
|---|---|
| Legally binding document. With the accepted offer in hand, you consult your Costa Rica attorney. They play a pivotal role in drafting the formal Sale and Purchase Agreement, a legally binding document. This agreement clearly outlines all the conditions essential for the successful transfer of the property’s deed. | Conditions and transfer details. The Sale and Purchase Agreement covers the critical aspects, ensuring legal clarity on the transfer process. This includes the identification of any contingencies, the agreed purchase price and the specifics of the property. If the buyer needs a mortgage, the financing timetable belongs here too; see our bank financing guide. Deposits and funds are best held in a regulated escrow or an attorney’s trust account; see our escrow guide. |
Step 3: Due diligence period
| Complete legal research | Professional inspections |
|---|---|
| Property verification. The due diligence period involves thorough legal research of the property. This aims to verify the absence of liens, contingencies and legal issues, ensuring the property holds absolute fee simple title. Land in the maritime zone is held by concession instead; see our oceanfront concession guide. | Comprehensive studies. Surveys, soil tests, home inspections and other professional services are carried out during this period to give a full understanding of the property’s condition and potential concerns. For the risks to watch for, see what to beware of when buying. |
Step 4: The closing process
| Conveyance before a public notary | Shares transfer agreement (if applicable) |
|---|---|
| Deed transfer. The closing, or conveyance of the deed, takes place before a Costa Rican public notary. The notary ensures the property is registered under the new owner or company. Closing costs include transfer tax, registry stamps and notary fees; see our guide to the costs of buying. | Company ownership changes. If the property is purchased with an existing company, the shares transfer agreement carries out the transfer of the company’s shares. The notary updates the company’s ownership details in the National Registry accordingly. |
Step 5: Property declaration for tax purposes
| Municipality declaration | Tax compliance |
|---|---|
| Tax registration. The final step is declaring the property before the corresponding municipality for tax purposes. This is done by completing a simple form and submitting it with the required documents, either personally or through your attorney. | Ensuring compliance. This step ensures compliance with property tax regulations, contributing to a smooth transition of ownership without tax-related complications. See our taxation overview and the costs of owning a property. |
Conclusion
By following these five steps, you help ensure a transparent and legally secure real estate acquisition in Costa Rica. Each phase is designed to safeguard your interests and to give a thorough understanding of the property’s legal and physical aspects.
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This is general information, not legal advice. The buying process, its order and timing, and the documents required vary by transaction and change; have a Costa Rican attorney guide and review each step.
