A checklist for buying property in Costa Rica
Everywhere you turn, you bump into someone who has either been to Costa Rica or at the least, knows someone who has bought property there.
All of the developments and real estate salesmen throughout Costa Rica will tell you that “CNBC says that Costa Rica is the hottest real estate market in the world today.”
Is land in Costa Rica a good thing, and particularly, “is property in the literally 100s of developments throughout Costa Rica as good as everyone says?”
This is a short primer in what to watch out for when shopping for land or property in one of the many developments being sold throughout the country. There are a huge number of developments, some good, some great, and, unfortunately, a great many that are not so great. In fact, the representations made by some of them border on out and out falsehoods.
So how do you tell the good from the bad?
A potential buyer, should INSIST on answers to these questions:
1. If you are buying a predevelopment or preconstruction property, what guarantee do you have that the infrastructure will be completed? Do you really want just a pile of dirt with a view?
2. Are you certain that all of the amenities you WANT and NEED are available? Don’t assume anything in Costa Rica. This ain’t Kansas, you know. The Internet and the satellite TVs and even good medical care or a good mechanic are not things that exist here with any assurance. Make a checklist for yourself.
3. Are you positive that your lot can, in fact, come with water, electric and telephone? There are more than a handful of communities in Costa Rica where water shortages are preventing building permits from being issued. Talk to the municipality and a good attorney and insist upon proof of these simple questions. Utilities and roads in Costa Rica are not items to be taken for granted.
And a salesman’s assurance of a new highway or road to the property is definitely not a guarantee.
4. If your salesman tells you that you can subdivide the property and resell it for a quick profit, don’t just take his word for it. Tell him you want proof. Many municipalities have minimum size lots and sometimes the promise of quick profits can cloud sound judgment. Oh, how are you going to arrange for utilities to your new subdivided lots? Do you think realistically that you can arrange these items with a phone call? Think again.
5. If you are one of the many potential buyers who is thinking about buying a property sight unseen, THINK TWICE. You wouldn’t do it in your own hometown. Why would you do it in a foreign country?
6. Don’t be dazzled by a salesman’s promise of quick profits, a new marina or a hospital or highway “right around the corner.” Time moves slowly in Costa Rica, and installing the infrastructure you are counting on could realistically (and probably will) drag on for years.
7. If you have responded to an e-mail, TV ad, or Google ad, you will get a telephone call extolling the virtues and profitability of the property in question. Ask the salesman where he is calling from. The odds are very high that he is calling from Florida and that he has not even seen the property. Go ahead, ask him. And ask yourself what kind of credibility this person could possibly have if he has not even seen the property or doesn’t even live in Costa Rica.
8. Ask the person selling the property for his cédula or basically his license to sell here in Costa Rica. This is important.
You may also be asking yourself “if there is something wrong with this property I should have already seen something negative about it, right?”
Actually, this is one side of Costa Rica that almost no foreigner knows about. Any negatives or “badmouthing“ of specific properties can result in lawsuits. Slander and libel in Costa Rica carry huge penalties.
Costa Rica IS a fantastic place to live or to visit. And it can be a great place to own property. But it can also be a nightmare for many who don’t do their homework. Make sure you do yours.
