Buyer Beware: What You Need to Know Before Buying Property in Costa Rica
Costa Rica is a dream destination for many — whether you're looking for a vacation home, retirement retreat, or long-term investment. But before you sign anything, it’s important to understand that buying real estate here is not the same as back home. While the process can be straightforward with the right team, there are also risks that can catch foreigners off guard.
1. No Title Insurance Companies — But There Is a Central Registry
In many countries, buyers typically rely on title insurance companies to verify ownership and protect against defects. In Costa Rica, title verification is done through the National Property Registry, a centralized system that allows public access to ownership records. However, interpreting these records correctly requires legal expertise.
In Costa Rica, a notary public — who must also be a licensed attorney — is the one who conducts the title search and registers the transfer. It's crucial to have your own independent legal counsel (not the seller’s) to ensure your rights are fully protected.
2. Attorneys, Not Agents, Lead the Process
Unlike in other countries, where real estate agents and brokers often manage the process with minimal attorney involvement, Costa Rican law requires that property transfers be handled by a notary-attorney. These professionals draft the deed and record the sale with the Property Registry.
However, not all attorneys will represent your best interests. That’s why it’s common — and wise — for foreign buyers to retain their own lawyer to advise them independently and ensure due diligence is conducted thoroughly.
3. Property Is Often Purchased Through a Corporation
Many expats choose to hold property in the name of a Costa Rican corporation (S.A. or S.R.L.). This can offer liability protection, simplify estate planning, and make future ownership transfers easier. But setting up and maintaining a corporation involves legal obligations and tax filings — all of which should be carefully managed with legal guidance.
4. No Mandatory Inspections or Seller Disclosures
This is one of the most significant areas of risk. In Costa Rica, sellers are not legally required to disclose defects. There is also no obligation to conduct a property inspection — and unfortunately, many buyers skip this step. We strongly recommend working with a trusted inspector and attorney who can evaluate legal, structural, and environmental risks before any commitment is made.
5. No Standardized Listing System
There is no Multiple Listing Service (MLS) in Costa Rica. Properties may be advertised through multiple agents — or not listed publicly at all. Prices are often inconsistent, and some properties may be represented inaccurately or even fraudulently. This makes it essential to verify every detail through legal channels, including ownership, boundaries, easements, and liens.
6. Real Estate Brokers Are Not Regulated
In many countries, real estate agents are licensed and regulated. In Costa Rica, anyone can legally act as a broker — no training, licensing, or oversight is required. That means agents may not have legal knowledge or even an obligation to disclose material facts, and they often represent the seller’s interests, not yours.
The bottom line: buying property in Costa Rica can be a smart and rewarding decision, but it comes with unique challenges. You don’t want to learn the hard way that what seemed like a dream deal was full of hidden risks.