What Are the Pitfalls of Buying Property in Costa Rica?
Buying property in Costa Rica is safe and common for foreigners, but there are specific pitfalls that can lead to costly mistakes. With proper due diligence, most issues can be avoided.
1. Title Issues
Some properties have:
Unclear land boundaries
Old liens or unpaid taxes
Incomplete registration
Squatter rights on rural land
Always hire a reputable bilingual attorney to review the title.
2. Unregulated Real Estate Agents
Costa Rica does not strictly regulate real estate agents.
Some issues include:
Inflated prices for foreigners
Inaccurate property descriptions
Hidden defects
Choose recommended, licensed agents only.
3. Infrastructure Surprises
Especially in coastal zones:
Unpaved roads
Unstable water supply
Seasonal flooding
Patchy internet
Inspection is crucial.
4. HOA or Condo Issues
Some HOAs have:
High maintenance fees
Poor management
Special assessments
Always review HOA financials before buying.
5. Building Permit Problems
Construction laws are strict. You must confirm:
Setbacks
Environmental restrictions
Municipal approvals
Zoning rules (especially agricultural land)
Bottom Line
Buying property in Costa Rica is safe with due diligence. The major risks come from unverified titles, unregulated agents, and lack of inspections.
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