By Jeff Lantz | 35-Year Osa Veteran & Founder of Osa Land Office
Guide Contents:
LEGAL DUE DILIGENCE
In Costa Rica, all lawyers are notaries and vice versa. The lawyer is tasked with the title search that will show any encumbrances, liens, mortgages, and the land usage certificate. Also verify that the taxes are paid up to date. It’s important to check whether the land falls within areas affected by environmental restrictions and to request a land-use certificate issued by the local Municipality.
Other due diligence in the field is where a competent agent comes in. The seller will usually consult their own lawyer and pay any corresponding fees. The buyer’s lawyer will execute the deed transfer at closing. If an escrow company is involved, closing can be done remotely once the deed is signed.
CLOSING COSTS
Unless agreed otherwise, it is customary for the buyer and seller to equally share the closing costs. Fees paid for attorney/notary services are based on a published scale, though this can be somewhat negotiable. The cost can vary between a San José lawyer and a small-town lawyer. It’s always good to get a quote before you get started.
Titled Property Recording Fees (National Registry):
- Attorney’s fees: 1.25%
- Recording fee: 1.5% for transfer tax
- Documentary Stamps: 0.86% for institutional taxes
ESCROW SERVICES
Using an escrow company is now the preferred method to arrange closing due to the new regulations concerning funds entering the country from foreign sources. Gone are the days when a foreign buyer would send funds directly to their lawyer or agent. Planning a closing around these scenarios can create banking delays and force you to start over.
RULES OF THE ROAD GUIDE
Successful Osa Peninsula Real Estate Closing Process navigation requires specific banking paperwork. Our full guide covers the exact SUGEF regulations you need to meet to open your escrow account.
There are competent escrow services in Costa Rica that will help you and your lawyer set up your escrow account in advance of closing. Escrow will receive the funds and distribute payments to the seller, pay off mortgages, and handle agent commissions. The buyer must provide certified documentation to establish the origin of funds — such as letters and statements from their bank — along with other details requested by the escrow service before opening the account.
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