Find a Property For Sale
Once a buyer has seen a property of interest, the next step is to understand what the process of acquiring the property may entail. The following are the basic steps that a purchaser follows when buying a property.
- First Step : Sign a Purchase/Sale contract with seller.
- Second Step : Deposit funds into escrow.
- Third Step : Title research performed and Title Commitment issued (review if property is free and clear of defects)
- Fourth Step : Closing-Execution of Transfer Deed, Endorsement of Shares and/or Mortgage Deed and disburse funds
- Fifth Step : Receive official Title Guaranty
Basic Terminology - while the purchase process may seem very simple, there are some key ideas with which a buyer should be familiar. The following will acquaint you with most common vocabulary used in real estate transactions in Costa Rica.
- Folio Real: This is the "social security" number of properties. It is the unique number assigned to each property to identify it and distinguish it from others. this number is comprised of three parts where the first number indicates the province, the second group of numbers is the number of the property itself and the last group of numbers indicates how many owners the property has or has had. The property that you are buying MUST have this number in order for you to obtain clear title.
- Transfer Deed:(escritura de traspaso): This is the document that contains all of the stipulations regarding the transfer of real estate. This document must be prepared by an attorney who must also be a Public Notary and the deed must be recorded in his/her Notary Book as well as at the Public Registry of Properties in San Jose.
- Power of Attorney:(Poder): This document authorizes a person to act on behalf of another to perform specific actions such as the purchase of a property. this is especially useful for clients that wish to close on their property without returning to Costa Rica if abroad.
- Survey Plan: In order to transfer or acquire a property the respective survey must be recorded at the Public Registry with the municipality authorization. The official drawing of the property is validated through an approval process by the Public Registry of Properties as well as by the municipality in which the property is located.
- Recording of the transfer deed: Upon the signature of the transfer deed the Public Notary shall take the transfer deed to the Public Registry for its recording. The recording process has two phases. First phase in which the notary presents the deed to the public registry for its annotation: from this moment the property is protected against any third party interest. After the registry verifies that structurally the deed has being done correctly the second phase of registration begins and the property will be recorded in the name of the new owner.