Find Your Property
Costa Rica doesn't have a centralized MLS like the US. Properties are listed across multiple platforms — Encuentra24, Zillow-style sites, individual agency websites, Facebook groups, and word-of-mouth. Many of the best deals never hit the internet. This is why working with a local, well-connected agent matters.
Look for an agent who lives in your target area, knows the market intimately, and works with foreign buyers regularly. Ask for references from past clients. Note: Costa Rica doesn't require real estate agent licensing the way the US does, so quality varies wildly. A good agent is invaluable; a bad one can cost you.
Pro tip: Spend at least a week on the ground before making offers. Drive the neighborhoods at different times of day. Talk to expats who already live there. Check road conditions in rainy season. The property that looks perfect on a sunny January morning might tell a different story in October.
Make an Offer & Sign a Purchase Agreement
Once you've found the property, you make an offer — usually verbally through your agent, then formalized in writing. If accepted, both parties sign a Promesa de Compraventa (Purchase-Sale Promise) or an Opción de Compra (Purchase Option). This is a binding agreement that outlines the price, terms, timeline, and conditions.
The purchase agreement should include: the full legal description of the property (from the Registro Nacional), the agreed price, the deposit amount, the due diligence period, a specific closing date, conditions for termination, and who pays which costs. Have YOUR attorney review this before you sign — not the seller's attorney.
Deposit: Typically 10% of the purchase price, held in escrow. The deposit is refundable during the due diligence period if you discover issues. After due diligence, it usually becomes non-refundable. Make sure the escrow terms are explicit in the agreement.
Due Diligence
This is where foreign buyers either protect themselves or get burned. Due diligence in Costa Rica means verifying everything independently — because nobody else is going to do it for you. There's no title insurance industry to fall back on (though it's starting to emerge).
Your attorney should verify:
- Title search — Confirm the seller actually owns the property, free of liens, encumbrances, and annotations in the Registro Nacional
- Survey/cadastral plan — Verify the property boundaries match the registered plano catastrado and that there are no boundary disputes
- Municipal compliance — Check for unpaid property taxes, municipal permits, zoning compliance, and building permits for any structures
- Maritime zone status — If near the coast, confirm whether the property is titled land or concession land (completely different legal frameworks)
- Water and utilities — Verify water rights (crucial in Guanacaste), electrical connections, and road access legality
- Corporate status — If the property is held in a corporation, verify the corporation is current on filings and taxes
- Environmental restrictions — Check for protected areas, forest cover restrictions, and environmental permits
Budget: $1,500–$3,000 for comprehensive due diligence. This is not where you cut costs.
Fund the Transaction
Most Costa Rica property transactions close in cash — meaning a wire transfer, not a suitcase. You'll wire funds from your home bank to an escrow account in Costa Rica. The escrow service holds the money until all closing conditions are met, then disburses to the seller upon recording the transfer.
Key considerations for moving money:
- Use established escrow — Stewart Title Latin America, First American Title, or a reputable local escrow service recommended by your attorney
- Anti-money-laundering compliance — Be prepared to document the source of funds. Costa Rica's financial compliance laws require it
- Currency — Most transactions are priced in US dollars. Wire in USD to avoid exchange rate risk
- Bank financing — Rare for foreigners. Costa Rican banks may lend to residents with local income, typically at 8–12% interest with 60–70% LTV
- Seller financing — More common than bank loans. Typically 30–50% down, 2–5 year term, negotiable interest rates
Warning: Never wire money directly to a seller, agent, or attorney's personal account. Always use a third-party escrow service. This is the number-one way foreign buyers lose money in Costa Rica.
Closing Day
In Costa Rica, the notary public (notario público) is the central figure at closing. The notary is a licensed attorney with special certification to authenticate legal documents. They draft the escritura (deed of transfer), collect the transfer tax, and submit everything to the Registro Nacional for recording.
On closing day, the notary will:
- Read the escritura aloud to both parties (this is legally required)
- Verify the identities of buyer and seller (bring your passport)
- Collect the 1.5% transfer tax and documentary stamps
- Have all parties sign the escritura
- Submit the deed to the Registro Nacional for recording
Registration typically takes 7–15 business days. Once recorded, the property is officially yours in the public registry. The escrow service releases funds to the seller upon confirmation of recording.
Can you close remotely? Yes — you can grant power of attorney (poder especial) to your attorney to sign on your behalf. This is common for foreign buyers who can't be present. The power of attorney must be notarized and, if executed outside Costa Rica, apostilled.
The Mistakes That Cost Real Money
After years of watching foreign buyers navigate the Costa Rica market, these are the mistakes that come up again and again.
🚫 Using the Seller's Lawyer
The seller's attorney represents the seller. Period. Always hire your own independent attorney for due diligence, even if the seller's lawyer seems helpful. The cost is $1,500–$3,000 — cheap insurance against problems that can cost $50K+.
🚫 Skipping the Title Search
The Registro Nacional is public, but navigating it requires expertise. Liens, annotations, boundary disputes, and tax debts can all hide in the records. A clean-looking property can have a $40,000 tax lien that becomes YOUR problem after closing.
🚫 Buying Maritime Zone Without Understanding It
Concession land is NOT fee-simple ownership. You're leasing from the government with conditions. Foreigners who've been residents for less than 5 years can only hold 49%. The rules are complex, the stakes are high, and violations can mean losing the property.
🚫 Wiring Money Without Escrow
Every few years, a foreign buyer loses six figures by wiring money directly to a seller or agent who disappears. Use a reputable escrow service. No exceptions. No matter how trustworthy someone seems.
🚫 Ignoring Water Rights
In Guanacaste especially, water is not guaranteed. Verify that the property has legal water access — a concession from AyA or ASADA, a registered well, or municipal service. A beautiful lot without water rights is a very expensive view.
🚫 Overpaying on Emotion
The sunset view, the howler monkeys, the dream of living in paradise — it's intoxicating. But the market is the market. Get comparable sales data, understand what similar properties have actually sold for (not listed for), and negotiate accordingly.
Typical Timeline
📅 Week 1–2
Property Search: Visit properties, meet agents, explore neighborhoods. Ideally spend 1–2 weeks on the ground before making any offers.
📅 Week 2–3
Offer & Agreement: Negotiate price, sign purchase agreement, deposit funds into escrow. Engage your independent attorney.
📅 Week 3–6
Due Diligence: Title search, survey verification, municipal checks, environmental review. Your attorney does the heavy lifting. Typical due diligence period: 15–30 days.
📅 Week 6–10
Closing Preparation: Wire remaining funds to escrow. Notary drafts the escritura. Final walkthrough of the property.
📅 Week 8–12
Closing & Registration: Sign the escritura with the notary. Deed submitted to Registro Nacional. Registration takes 7–15 business days. You own the property.
Walking Through a Real Transaction
Understanding the process is easier when you see it play out. Here's what the journey looks like in practice.