Legal Checklist Before Purchasing Real Estate in Costa Rica

Buying property in Costa Rica can be an exciting opportunity, whether you're looking for a tropical retirement, a second home, or an investment. However, it's crucial to follow the legal process carefully to avoid costly mistakes. Here's a practical legal checklist to guide you before making any real estate purchase in Costa Rica.

1. Hire a Trusted Local Attorney

Always work with a licensed Costa Rican attorney who is experienced in real estate law. Your lawyer will:

• Conduct a due diligence process

• Draft or review legal documents

• Ensure your rights are protected

• Represent your interests during negotiations

Tip: Make sure your attorney is registered with the Costa Rican Bar Association (Colegio de Abogados).

2. Verify the Property is Registered and Titled

All legitimate properties must be registered with the National Registry (Registro Nacional). Your attorney should:

• Confirm the title exists and is in the seller’s name

• Check for liens, mortgages, or legal disputes

• Verify the boundaries and size match the registered plan (plano catastrado)

  
  

3. Check Zoning and Land Use Regulations

Not all properties are suitable for building or commercial use. It's important to:

• Verify the zoning plan (uso de suelo) with the local municipality

• Ensure there are no building restrictions (e.g., protected areas, maritime zone)

• Confirm availability of utilities like water, electricity, and internet

  
  

4. Review Corporation Ownership Carefully

Many properties in Costa Rica are held by corporations (sociedades anónimas or limitadas). If you're buying shares instead of the property directly:

• Request full documentation of the corporation

• Review the corporation’s debts or obligations

• Ensure the transfer of shares is legally executed and registered

  
  

5. Ensure All Taxes and Utilities Are Up to Date

Before closing, make sure the following are paid and current:

• Municipal property taxes (Impuesto Municipal)

• Luxury home tax (if applicable)

• Public services bills (electricity, water, etc.)

• Corporate taxes if purchasing through a company

  
  

6. Use a Secure Escrow Service

Avoid paying directly to the seller. Instead:

• Use a registered and reputable escrow company in Costa Rica

• Ensure the escrow account is authorized by SUGEF (Costa Rica’s financial regulatory body)

• Have your attorney review the escrow agreement

  
  

7. Sign a Properly Drafted Sales Agreement

The Purchase and Sale Agreement (Contrato de Compraventa) must be:

• Reviewed and/or drafted by your lawyer

• Include all relevant terms (price, deadlines, obligations)

• Notarized and signed by both parties

For final transfer, the property deed (escritura pública) must be signed before a Costa Rican Notary Public, who must also register the transaction in the National Registry.

8. Keep a Copy of Everything

Once the purchase is complete:

• Request certified copies of the registered deed

• Store all contracts, tax receipts, and correspondence

• Make sure your name or company appears correctly as the registered owner

  
  

Buying property in Costa Rica is completely possible for foreigners, and many enjoy a smooth, rewarding experience — but only if they do it right. By following this legal checklist and working with the right professionals, you can ensure your investment is secure and compliant.

Need Help?At Urrutia Integral Services, we specialize in guiding foreigners through every step of the real estate process in Costa Rica. Whether you are buying your dream retirement home or making an investment, our bilingual legal team is here to help.

Contact us for a consultation today.