The Buying Process
Financing
Mortgages
For Costa Rican real estate transactions, it is customary for the individual who is receiving financing to pay the expenses involved with composing and registering the mortgage instrument. A mortgage can be initiated during the closing of the real estate transaction by the addition of a mortgage clause within the transfer deed. Another way is to draft a separate mortgage instrument.
It costs 0.1% of the total value of the mortgage to be paid as a registration fee. Mortgages in Costa Rica also require that you pay for documentary stamps. The public notary will charge an additional fee that falls in the range of 0.625% to 1.25% of the total value of the mortgage for drafting the mortgage instrument. The range for the fee will often vary based on the legal state of affairs with the property.
When we discuss the total value of the loan, please be advised that it will not equate to the agreed upon purchase price. The bank will send out an appraiser to the property and survey the house and the land. Based on this assessment, the loan that the bank will issue will be a maximum of 70% of the assessed value. If however the sales price is lower, then you will get a loan for the full price agreed upon with the seller.
