There are good reasons why Costa Rica is a popular destination for retirees and ex-pats alike…
The process of how to buy property in Costa Rica entails hiring a public notary to conduct a title search, determine whether there are any mortgages, limitations, encumbrances, or liens on the property, and draft a purchase agreement with detailed terms and conditions, with a closing date set after the parties agree on a due diligence period. The seller and buyer will sign the real title transfer contract in the Notary’s official book of deeds during the closing. The Notary charge is around 1.25% transaction amount. The transfer tax is about 1.5%, while the registry and other costs are around 1%. Closing costs are occasionally shared by the buyer and seller, but not always.
For example, in real estate transactions involving a real estate commission (typically 6% of the purchase price), they may agree that the seller will pay the commission while the buyer will pay the transfer fees and costs—the seller must pay the capital gains tax, if applicable.
When it comes to owner-financing, the creditor typically has the option of choosing which Notary Public office to utilize. When there is bank funding, the situation is the same.
The due diligence stage is critical for identifying any potential obligations and taxes that may be owed. We can also use registered Escrow Services to help with the transaction.