Buying land in paradise is an exciting venture, but understanding the local legal system is key to a smooth transaction. In Costa Rica, the principle of "Registry Priority" rules: what is written in the National Registry is what matters.
The 5-Step Purchase Process
Offer and Negotiation: Once you find the land, your broker prepares a formal offer. After the price is agreed upon, a Purchase and Sale Agreement (PSA) is signed.
Earnest Money Deposit: Usually, 10% of the purchase price is placed into a SUGEF-regulated Escrow account. This "freezes" the property while your lawyer works.
The Due Diligence Period: This is the most critical phase (usually 15–30 days). Your lawyer verifies titles, taxes, land use, and environmental restrictions.
Topography Verification: A topographer should visit the site to mark the exact boundaries and ensure the area matches the registered map (Plano Catastrado).
Closing and Registration: You sign the Transfer Deed (Escritura) before a Notary Public. The funds are released to the seller, and the Notary submits the deed to the National Registry for official recording.
What to be "Worry About" (Red Flags)
While the system is robust, keep an eye on these specific "danger zones":
Unrecorded Liens: Ensure there are no "hidden" annotations, such as family court disputes or pending lawsuits, that could block the transfer.
Water Availability: This is the #1 reason sales fail. In Costa Rica, you cannot get a building permit without an official letter from AyA or the local ASADA (water board) confirming there is a water connection available for that specific lot.
Regulatory Plans (Plan Regulador): Not all land can be built upon. Some areas have restrictions on building height, footprint, or density. Always ask for a "Uso de Suelo" (Land Use) certificate from the Municipality.
Environmental Setbacks (Setas/MINAE): If the land has a creek, a spring, or a river, there are mandatory "no-build" setbacks (usually 10 to 50 meters).
The "Concession" Trap: If the land is within 200 meters of the high-tide line (Maritime Zone), you are not buying the land; you are buying a lease from the government. This has strict ownership rules for foreigners.
Pro Tips for a Safe Investment
Use Escrow: Never send money directly to a seller’s personal account before closing.
Independent Lawyer: Hire a lawyer who represents only you, not a lawyer shared with the seller.
Check for Encroachments: Ensure neighbors haven’t moved fences onto your property. A fresh survey by a topographer is non-negotiable.
Closing Costs at a Glance
Real Estate Commission: Usually paid by the seller.
Transfer Taxes & Stamps: Approx. 2.3% of the value.
Legal Fees: Approx. 1% to 1.25%.