Are you thinking about purchasing a property in Costa Rica but not sure where to start?
Thinking about buying property in Costa Rica? You’re not alone—and we’re here to make it easy.
Purchasing real estate in a foreign country can feel overwhelming without the right guidance. But don’t worry—we’ve got you covered every step of the way.
Do your research and ask the right questions.
This is one of the most important decisions you’ll make, and having trusted information and expert support makes all the difference. Our experienced team is here to help guide you through the process, from your first inquiry to closing day.
Click below to read some important facts about property ownership in Costa Rica and how to select your Real Estate Agent.
What are the steps to purchase a property in Costa Rica?
Great! You found your Own Piece of paradise, and you are ready to make an offer.
Part of your due diligence, as a buyer, will include asking the agent for the property information (which they can get from the National Registry and will need to write the offer). This document will have the “Finca” number, the “Plano” number, the exact size of the property, the name of the owner, or the name of the corporation that owns the property, and let you know if there are any existing liens on the property. (Your agent should go over all this info with you.)
Serious offers are made in writing. The real estate agent will need your passport number and full name to write the offer on your behalf. (Offers can be presented in English if the seller also speaks English; if not, the offer will be presented in both languages—if your agent presents you with an offer to sign in Spanish and you do not understand it, make sure they give you the offer in English as well.) Make sure you read all the pages of the offer. If there is something you do not understand, make sure you ask questions until you do. If there are any unanswered questions, get your Costa Rican attorney to look over the offer and explain it to you. (If your agent cannot do this for you, you are working with the wrong agent.)
Everything is negotiable, so when you discuss the offer price with your agent, keep that in mind (and depending on the offer, you can expect a counteroffer from the seller).
After negotiating with the seller, the offer needs to be executed by both parties (buyer and seller)
Congratulations! You are now “under contract”!
Typically, you will have 7-10 business days to deposit your earnest deposit money, and the clock starts once the offer is executed by both parties.
Your real estate agent will now send an introductory email with the executed contract to the escrow company, which will contact you directly to open up the escrow account and send you wire instructions. (This info is between you, the buyer, and the escrow company only. No need to copy anyone else on this communication, as it is very confidential and private information.
Once your earnest money deposit is received in the escrow account, the escrow company will notify you and your real estate agent with a statement so they can show proof to the listing agent that the funds were deposited.
Once the contract is fully executed, your real estate agent will also need to contact your attorney in CR (if you do not have one yet, don’t worry, they will refer a few to you). The agent will then send the executed contract to your attorney so he/she can start due diligence on the property. Due Diligence can be anywhere from 10 to 30 days (this can be negotiated, but you need to check with your attorney to make sure they can get the work done during the Due Diligence timeline)
You can opt for a home inspection (at your expense), which needs to happen before the due diligence period is over. Again, your agent should be able to refer a few options of home inspectors to you.
Typical closing time is 30-45 days (but can also be negotiated)
Once the attorney completes the due diligence, he/she will send you a report for you to sign off on. After you sign off, typically, your earnest money now becomes “hard” (non-refundable)
Your real estate agent will make a “closing statement,” which is a financial overview of the transaction. Typically, there are two sides, one for the buyer and one for the seller, which list the total sales price, closing costs, attorney fees, pro-ration of any utility bills and taxes, payout instructions, and wire instructions to everyone involved. This closing statement (once completed) gets sent to the escrow company, and they will use this to create their “Exhibit A,” which has the same info on it as the closing statement but in their format. Make sure you understand everything on the closing statement, as this outlines all the funds to be paid. If you do not understand something here, ASK questions!
We recommend that you wire the balance of the funds at least a week before closing to make sure the money is in your escrow account for closing.
You are now an official property owner in Costa Rica! Time to Celebrate
