Why Costa Rica Real Estate?
Purchasing
Contracts
When reviewing the contract it is important that you understand every word. The real estate industry is not as regulated as in the U.S. or Canada. Under the "attorneys" section above, there is a comprehensive layout of the steps that will go on during the purchasing process. It is important to know them so that you can hold your council accountable throughout the process.
Contracts in Costa Rica, by law, must be written in Spanish. However, if there is a party involved that does not understand Spanish, a translator must be provided that is deemed suitable by all parties involved in the real estate transaction. This right can be waived if the individual chooses to do so.
All documents involved with the sale are included in the Protocol Book. The Notary Board will possess the Protocol Book and once the contract has been executed and the property transferred, it is given to the National Archive for public access. Notary Publics are not held harmless and are fully responsible for any failure on their part to perform their professional obligations and duties as well for the violation of Laws and regulations under disciplinary, civil and criminal liability.
The contracts involved with purchasing real estate are guided by the Costa Rican constitution and regarding property rights it reads, "is inviolable; and nobody can be removed from their property unless in force of public interest legally proved, under previous indemnification according to the law". The purchasing contract transfers all rights to the buyer. The notary must be involved in all transactions. They create the Notarized Property Conveyance Deed (Escritura Notarial de Traspaso de Propiedad): This is the manuscript, requisite by law (under article 450 of the Civil Code) in order to transmit real estate property from buyer to seller. It is a property transaction agreement composed by the Notary Public in the Protocol Book containing a comprehensive identification of the parties involved, a full description of the real estate and the transaction information and provisions (acquisition price, easements, mortgages or other legal details).
The deed must be signed by the parties and then by the Notary. The official transcript (testimonio) is then issued by the Notary for official public record. This text must contain the Notary's signature, security tag, raised seal and must be printed on certified security paper. Transfer taxes, legal stamps and fees are paid at Banco de Costa Rica (the designated bank for the Public Registry) and a certified bank slip is included as receipt to the transcription in order to substantiate the payment.