Buying Property in Costa Rica: Hidden Risks to Check Before You Buy
Costa Rica has no standard title insurance of the kind US buyers know. Due diligence is the buyer's real protection, and a clean registry report alone does not prove that a property is free of problems.
Why a clean registry report is not enough
A Registro Nacional report shows the owner, mortgages, easements and registered annotations. Many risks never appear there. A squatter shows up only once a court judgment is registered. Municipal tax debt, missing building permits or construction defects are not part of a title search.
That is why we combine three layers: a legal registry review, checks with authorities (municipality, water association, cadastre) and a physical inspection on site. None of them replaces the others.
What due diligence typically finds
The overview below reflects the practice of Costa Rican attorneys. Most findings can be resolved before signing if they are found early.
| Finding | What it means | Resolvable before closing? |
|---|---|---|
| Unpaid mortgage | A previous owner used the property as collateral | Yes, paid off from the price through escrow |
| Annotation (anotación) | A pending dispute or legal act recorded in the registry | Usually, depending on the action |
| Easement | A right of passage or utilities that binds any owner | Not removable, must be priced in |
| Area discrepancy | Registered area does not match reality | Yes, with a new survey |
| Unsettled inheritance | Broken chain of title | Yes, but slowly |
| Third-party possession | Someone lives on or farms the land | Depends on how long and how openly |
| Municipal tax debt | Property tax has not been paid | Yes |
| Missing value declaration | Value not declared within the legal 5-year period | Yes |
| Missing building permits | Construction lacks permits or differs from approved plans | Yes, but may delay closing |
Risks no lawyer sees from a desk
Some problems are only visible to someone standing on the land. Where does the access road actually run? Is there water in the dry season? Does the fence match the survey plan? Is part of the building inside a river or forest buffer zone?
- Physical check of boundaries and access against the plano catastrado.
- Water availability letter from AyA or the local ASADA.
- Zoning (uso de suelo) and building permits verified at the municipality.
- Technical inspection of structure, roof, electrics and wastewater.
- Labor and tax litigation check if the seller is a company.
How we work
Our principle is simple: verify first, decide second. Our team comes from Costa Rica and knows local authorities and practice. We see the property in person before you decide, and the legal review is done by an independent Costa Rican attorney who represents you, not the seller.
Funds go through escrow and are released only when every condition is met. We only offer properties we would buy ourselves. Buyers from the USA and Canada receive the same full support as our European clients.
General information only, not legal or tax advice. Consult a Costa Rican lawyer before deciding.