Property Conveyance Questions
All of the residential properties will be conveyed fee simple. Regardless of your nationality, you may wish to consider holding title in a Costa Rican corporation called, “Sociedad Anónima” or “S.A.” transferring or a limited liability company (“Limitada”). There may be tax advantages when it comes to reselling the property at a later date. We can refer you to a Costa Rican attorney who can explain this process and perform the service as part of the property closing process.
Yes. Title insurance provides a guaranty to fee simple ownership of your property and a search of the title provides a property clear of third party rights of possession. Title insurance is not required and it is at the buyers’ option to pay for and obtain title insurance. Your attorney can recommend title companies.
The attorney, can also research the title’s legal standing as part of his/her service at your request.
The purchase of a home-site lot requires a US $10,000 initial earnest money deposit. Since each buyer will have different desires, such as building a home, other contractual terms will be negotiated separately with each purchase.
Unlike in many states in the US, there is no contract rescission period in Costa Rica. Once “Purchase & Sales Agreements” are executed and deposits are received by Blue River Estate, the terms agreed to by the Buyer and Seller is legally binding.
Our bank, the Scotia Bank will be happy to assist you. There are also several local banks that may offer financing to qualified purchasers. Interest rates in Costa Rica are two to four points higher than in North America and for this reason many foreign buyers elect to refinance their homes using money obtained where they live.
Purchase & Sale Agreements cannot be assigned and property cannot be re-listed or sold to another buyer prior to closing without the Developer’s written approval.
The seller has put together a package that will include all fees, in order to reduce the cost and simplify the process. However, you can ask a lawyer for an estimate of these items. Buyers are responsible for land transfer taxes and registry stamps totaling approximately 2.3% of the purchase price and Notary fees of 1%. Buyers can expect to pay approximately $1000 to the law firm if they elect to take title to their property in either a Costa Rican S.A. or Limitada.
Property taxes in Costa Rica are significantly lower than in North America. They are currently set at .25% of the registered property value and are payable on a quarterly or annual basis, at the election of the property owner.
There are currently no capital gains tax in Costa Rica on the sale of property or the sale of the shares or quotas of the S.A. or Limitada that owns the property as long as the seller is not in the business of buying and selling real estate, in which case he may be subject to Costa Rican income tax law.
Legal transfer begins with the signature of the transfer documents and their presentation to the Registry. The complete process can take up to 4 to 5 weeks, but once the document is stamped as received by the Registry, you have the rights to ownership of the property and no liens or transfers can occur.
Yes. Funds in US $ are required and can be remitted by cashier’s check drawn on a US bank or more commonly are wire-transferred according the instructions in the Purchase & Sale Agreement.
Typically, 2-4 business days.
It is recommended that buyers hire a lawyer to assist with the real estate purchase transaction in Costa Rica. We can help with a list of preferred law firms.
No. All properties at Blue River Estate are dedicated to whole ownership (fee simple).
Brokers typically charge 10% commission. Sellers may also choose to sell their property themselves, in which event no commission is payable.
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