Costa Rica real estate procedures are very different from other countries, that is why it is importat you are familiar with some of the regulations and procedures related to real estate. 

The more informed you are, the better you will be with your investment.

WHY USING AN ESCROW ACCOUNT TO PURCHASE PROPERTY?

In Costa Rica, you can be assured that an escrow agent is a neutral third party in the entire transaction who can be trusted, and will act responsibly at all stages of the transaction

 

WHAT DO I NEED TO DO IF MY OFFER TO PURCHASE IS ACCEPTED?

Upon acceptance of an offer, a secure escrow account will need to be set up with a company that is registered with the banking authority of Costa Rica, known as SUGEF. They will act as a third party to ensure that everyone is protected during the closing. Do not allow a law firm or a real estate company to accept or handle your money. ALWAYS ask for a separate, secured, registered Escrow Company to handle the funds.

 

WHAT DO I NEED TO DO TO OPEN AN ESCROW ACCOUNT?

We will set up an appointment with the Escrow and Trust (escrowtrustsolutions.com) firm to start the process of opening the escrow account.

The ESCROW agent will ask for a lot of personal information to ensure your monies are coming from a legitimate source. Costa Rica is very adamant, and they will not accept illicit funds and they abide by all international money laundering rules, regulations and laws.

 

WHAT IS REQUIRED TO OPEN AN ESCROW ACCOUNT

Copy of your passport.

Copy of your driver´s license.

Copy of a utility bill that shows your address.

A proof of the source of your funds (They will ask to see you last year’s tax return and three months of bank statements).

A know your customer form complete and signed.

If your funds are coming from a corporation or a business account, or if a third person or family is wiring funds on your behalf, they will most likely require other documents to insure the source of the monies.

They will review all documents and information to be sure to comply with all Costa Rican banking laws.

All of these documents are forwarded to a compliance department where dozens of documents are being sent from all over the country, and from many different law firms. Sometimes, they will ask for additional information or to have something notarized or apostle, and it might be a week after you originally sent it. RELAX. They are just doing their job to ensure that everything is on the up and up. The market is heating up and there are many clients just like you, all sending information. It takes time for them to review it before getting back to you.

When you scan and send these documents, there is NO reason to copy us or the attorney. Just send it directly to the Costa Rica escrow agent. All information will stay private and secure, and this information will NOT be shared with outside sources, only with the escrow company and their compliance officers.  

There is NO way to avoid sending this information. No legitimate law firm will ever close a transaction unless they are 100% sure that the money is clean.

There are many horror stories of buyers, who chose to go with a less than reputable law firm. Those clients wired their monies to the attorney’s account, and in many instances, the accounts were frozen by the Banking Authority of Costa Rica, as that is considered Money Laundering and is a crime.

We cannot stress to ALWAYS use a third party, registered Escrow Company. Also, at the time of closing, you will be required to sign an Affidavit in front of a Costa Rican notary. This is basically a personal guarantee stating that your funds are clean and come from a legitimate source. Our lawyer will assist with this process as well as representing you during the purchase process.

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                                                RECOMMENDED PROCESS PRIOR TO BUYING PROPERTY IN COSTA RICA

  1. After finding the desired property, you can make a formal offer to the buyer.
       a.  The offer should have the amount you wish to pay for the property
       b.  The amount of down payment you would like to provide to hold the property
       c.  Contingencies based on the results for:
                        i.   Uso De Suelo

                        ii.   Fluvial Report from INVU if the property is near natural resources such as rivers, water springs, etc.

                        USO DE SUELO – This is a legal document issue by the local Municipal to let you know if you can build in the land you are attempting to                                           purchase. Normally this procedure takes about 4 days.

                        INVU FLUVIAL REPORT – Alineamiento Fluvial - Portal-INVU This is a report provided by the INVU (National Housing Institute). Duration 30                                  working days +/-  This process requires the following documentation:

                                      1.  Formal online request – Cost $60.00 USD Plataforma Digital de Visados - PDV - Portal-INVU
                                      2.  Original Cadastral Plan - $10.00 USD
                                      3.  Certified Copy of Cadastral Plan $5.00
                                      4.  Two original copies of Topography Report with the following:
                                              a.  Contour Lines for each meter
                                              b.  To scale
                                              c.  Signed by a professional Topography
                                              d.  Cost $300 to $1,500+ USD depending on the size of the property

  2.  Pay the down payment to the Seller
  3.  Once the reports are in, and both Uso de Suelo, and Fluvial Report are satisfactory, you can proceed with scheduling the closing date.
              a.  If the reports are not satisfactory, the down payment will be returned to the Buyer

  NOTE – Either the seller or the buyer can pay for the reports.  If the Seller pays for the reports, the amounts spent will be added to the final sale price.  If the       Buyer pays for the reports, the total amount will be deducted to the final sale price.  Buyer and Seller will agree on either way.


  Charles Hockett – 506 8879-7439
  Betty Cambronero – 506 8887 7229

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