Frequently Asked Questions

This a term of 2-4 weeks in which your lawyer will review the property from a legal perspective to make sure it does not have any liens or annotations, that could prevent you from fully enjoying your property. The compliance with tax payments, availability of water and electricity, the applicability of legal restrictions will also be reviewed as well as corporate governance in case you are purchasing shares of a company or a business. A topographic measurement or a visit from a civil engineer may also be advisable to check the property will live up to your expectations. This can avoid a lot of headaches in the future.

The main costs will be the transfer tax and National Registry stamps, which are 1.5% of the price or the value of the property (which ever is higher). Furthermore, the seller may have to cover a capital gains tax, and each party usually pays for their legal representation, although sometimes the notary fees can be shared.

Other expenses to be considered are the cost of the Due Diligence, escrow fees and the costs involved in setting up a holsing company (advisable for non-residents).

Your lawyer will provide you with a report of any and all findings that can come up during the Due Diligence. Many times, the findings can be easily resolved but, if not, a notice must be given to the seller within the term, and the initial deposit is reimbursed to the buyer. Otherwise, your lawyer will continue to set up a company and work on the purchase deed, which must be signed by the parties on the closing date. The remaining price must be transferred to the escrow agent and the closing can take place.

Although Real Estate law is the heart of your firm, we are happy to assist you with immigration law, corporate governance, tax and compliance, litigation and notary services. Having been an expat myself, I know the difference a friendly hand can make. Feel free to reach out to our team in San José or Guanacaste. Any time!