What Are the Pitfalls of Buying Property in Costa Rica?
Buying property in Costa Rica is safe and common for expats, but there are a few pitfalls to be aware of. Due diligence is essential to avoid legal or financial problems.
1. Unclear Title or Ownership Issues
Some properties may have:
Boundary disputes
Missing title deeds
Multiple inheritors
Improper land registration
Always verify titles through a reputable attorney.
2. “Wildland” or Agricultural Restrictions
Certain land types (like agricultural plots or land near protected areas) have:
Usage restrictions
Zoning limits
Building height rules
Check zoning laws before buying.
3. HOA or Development Problems
Condo fees and gated community costs may be:
Higher than expected
Poorly managed
Subject to special assessments
Review HOA finances before committing.
4. Foreigners Misled by Unlicensed Agents
In Costa Rica, real estate agents are not always regulated, so:
Some overprice homes
Some hide risks
Some push bad deals
Use licensed, recommended agents only.
5. Infrastructure Surprises
In rural areas:
Roads may be unpaved
Water access can vary
Internet quality may differ from expectations
Ensure inspections cover utilities and infrastructure.
6. Not Accounting for Taxes & Fees
Costs include:
Legal fees
Transfer taxes
Property inspections
Optional escrow services
Still lower than many countries, but must be understood.
7. Buying Without Legal Review
Never rely solely on the seller or realtor.
Your attorney should:
Run a full property registry search
Check liens or mortgages
Verify building permits
Bottom Line
Buying in Costa Rica is safe with proper due diligence — but skipping legal checks or ignoring zoning rules can cause major problems.
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