The Investment Process
Due Diligence
The investor's checklist before signing anything in Costa Rica
Step-by-Step Guide
Title search (Registro Nacional)
Verify title in the National Property Registry (Registro Nacional). Confirm: (a) seller is the titleholder, (b) no liens or mortgages, (c) no legal annotations, (d) property is fully titled (not concession). Takes 1–3 days.
Maritime zone verification
Check if any part of the property falls within the maritime zone (50m from mean high tide — public; 50–200m — concession zone). Titled property should be above the 200m line. For concession properties, verify the concession is active and transferable.
Municipal permits and use
Confirm property zoning allows intended use (residential, tourist, commercial). Check for pending municipal violations. Verify building permits for all structures (unpermitted construction creates legal liability).
HOA and condo documentation
For condos: request 3 years of HOA financial statements, meeting minutes, and reserve fund balance. Assess whether fees are current. Review the condo regulations (reglamento de condominio) for rental restrictions.
Physical inspection
Hire a qualified inspector. Costa Rica's tropical climate creates specific risks: roof integrity, water infiltration, mold, termite damage, electrical systems (older properties may have substandard wiring).
Developer due diligence (pre-construction)
Verify: (a) developer's track record, (b) building permits in place, (c) land is titled to developer with no liens, (d) escrow arrangement protects buyer funds, (e) purchase agreement reviewed by your own attorney (not developer's).
Typical Costs
| Item | Amount |
|---|---|
| Attorney for due diligence | $500–$1,500 |
| Physical inspection | $300–$600 |
| Title search (official) | $50–$150 |
| Environmental study (if needed) | $500–$2,000 |
FAQ — Due Diligence
What are the biggest due diligence risks in Costa Rica?
The top risks are: (1) maritime zone encroachment — property incorrectly described as titled when it's actually concession, (2) unpermitted construction — additions built without permits create seller liability that transfers to buyer, (3) pending HOA assessments — buyer inherits unpaid HOA debt in some structures, (4) developer insolvency for pre-construction — always verify escrow.
Can I use a US attorney for a Costa Rica property purchase?
No — Costa Rica requires a Costa Rican licensed notary public to execute the escritura (deed). Your US attorney cannot sign. However, your US attorney can review the purchase agreement before you sign. We strongly recommend using a bilingual Costa Rican attorney who specializes in real estate.