How To Buy Costa Rica Real Estate
The best advice you can get about Costa Rica Real Estate comes from the savvy insiders who know all there is to know about this glorious, unspoiled paradise.
I’m talking about Dave McDuffie and Costa Rica Builders.
Taking a few highlights from the helpful 30-page free report Dave prepared for people just like you, this article of excerpts offers the following insights:
- Don’t make assumptions based on your knowledge of US real estate law because it does not apply. Costa Rica is different and it is up to you to make sure you understand what you are buying.
- Real estate is unregulated in Costa Rica. This means that you must do your homework: contact as many property buyers as you can and ask them to tell you how their buying experience turned out. Don’t Be a Stranger in a Strange Land!
- The 10% Law: If you intend to subdivide agricultural land, make sure your attorney fully explains the implications. If done incorrectly, you may lose 10% of your land to the local district or city.
- In Costa Rica there are no Conflict of Interest laws that prevent an attorney from representing both parties in a real estate transaction. This is illegal in the US but common in Costa Rica.
- Since there is no Multiple Listing Service in Costa Rica, your agent can only show you what he or she knows about. This does not mean that s/he has a true knowledge of what is really available for sale.
- Net Listing is illegal in the US but is very common in Costa Rica. It occurs when an agent sells a property for more than the seller’s asking price.
- Not all lots that are for sale are suitable for building. Hilltops, ocean front and lush tropical locations all have their drawbacks. Be sure you know all the rules.
Last but not least, you are gambling with your money so make sure you hedge your bets. Never bet more than you can afford to lose. Remember: If it sounds too good to be true, it usually is.