Buying Real Estate in Costa Rica? Make Sure There’s a Survey

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Source: Bing commerical reuse

Source: Bing commercial reuse

For all its bad reputation as a sensationalist newspaper dedicated to yellow journalism and pictorials of scantily-clad and seductive Ticas, Diario Extra features columns by legal experts on an almost daily basis. Many of the topics covered by these columns originate from questions posed by readers. Here’s a recent topic that will resonate with readers of The Costa Rica Star who are interested in acquiring real estate in our country. Please note that this does not represent legal advice in any form; you should only discuss these matters with proper counsel.

 

QUESTION: About a year ago I purchased a home by means of an “option to buy” agreement. At that time, there were some issues with the boundary survey and sketch map, and thus I cannot enter the property in the Registro Cadastral (National Land Registry).

 

The municipality and the Ministry of the Environment and Energy (Spanish acronym: MINAE) will not approve the survey because they think it is located within a protected area; however, the owners of the property have cut down many trees and even dredged up the river at their pleasure without the MINAE showing up. The home in question was built 30 years ago and I would like to register it.

 

ANSWER: Without a proper boundary survey or sketch map duly elaborated by a topographer who is familiar with the municipal and environmental issues of the area, a property cannot be registered in the National Land Registry, and thus a real estate transaction will be nearly impossible to conduct.

 

Potential real estate buyers in Costa Rica should not purchase property that does not appear in the National Land Registry. If this is the case, the buyer should ask about a survey or sketch map. If no such document exists, it may be wise to consider walking away from the transaction, or at least asking the seller to contract a land surveyor to conduct a survey and see if the municipality will stamp it with a seal of approval.

 

According to Gerardo Morales, the attorney who wrote the response for Diario Extra, laws governing property transactions in Costa Rica have changed considerably over the years. If potential buyers run into an old property that has not been transferred in decades, they should ask the seller to comply with the new laws. If the right to title can be ascertained, then ownership cannot be denied and registration should take place in accordance with Article 45 of the Constitution.

 

In essence, purchasing land or a home in Costa Rica without an approved survey or sketch map is a major risk. Please note, however, that modern planned communities and condominiums in Costa Rica run from a master survey, which means that individual single-family homes or units therein may just have an annotation that makes reference to a master plan.

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