Before considering investing or purchasing a property in Costa Rica, two key issues must be taken into consideration:
-Costa Rica's complex legal system is based in the old Napoleonic Code, and its general motto is "If there's no blood, there's no damage". Taking a civil issue to the courts costs a lot of time and money.
-In the U.S., to be a real estate broker one must be registered and take an exam, as opposed to Costa Rica, where anyone can operate as real estate broker, agent, or intermediary.
Because of this, when buying a property in Costa Rica, it is important to take the following precautions:
1- Be warned if the property looks abandoned. These properties are the most "attractive" to fraud schemes, as their owners do not frequently control the legal status of their assets.
2- If the broker seems foreign, ask him for his residence permit or his identification document.
3- Check the Internet to see if there are complaints or police reports against him.
4- Get advice from a real estate attorney.
5- Be cautious. Specially for not spending money in high-value properties that will begin construction in more than two years...
State Banks in Costa Rica have a portfolio of over 2,300 properties from the repossessions made because of mortgage defaults.
Nacion.com reports that "... the banks, Banco Nacional, Banco de Costa Rica, Banco Popular and Bancrédito had 2,336 properties in their possession, which represents a 35% increase compared to the same period in 2012." Of that total, Banco Nacional has the largest number of foreclosed properties with 60%.
A lawsuit filed in the U.S. accuses a company of luring investments from retirees using a ponzi-like scheme.
The text of the lawsuit establishes that during the past six years, Paragon Properties of Costa Rica, a Hollywood-based company, received money from over 900 U.S. retirees, promising to build residences in various Costa Rican communities, insisting that unhappy investors would receive 100% of their money back.
Sustainable 70 Acre Coffee Farm, San Ramon, Costa Rica Coffee Estate, development property with 20 titled lots, ready to develop with roads, water and power. Great Location, close to everything. Ideal area for living or developing an ecologically...