By Theo Veenstra | LetsBuyCostaRica.com
Look for my Tips
Tip #1; I hope that headline gets your attention. Doing business in Costa Rica can be some different aspects. We arrive at some of the protections you expect in a different way according to Civil Law and common Costa Rican procedures. Its’s important not take certain things for granted.
You have bought and sold homes in Canada. You understand offers, deposits, inspections and closing dates. Buying a property in Costa Rica should be much the same, right?
Some parts will feel familiar. Others deserve a fresh approach.
As a Canadian–Costa Rican dual citizen with more than 25 years of real estate experience, and someone who has called Costa Rica home since 2014, I encourage Canadian buyers to arrive with questions rather than assumptions.
Your experience is valuable. But the contracts, professionals and procedures you relied on in Canada do not automatically work the same way here.
Your property search works differently
Canadian buyers often begin with the expectation that one familiar listing platform will provide a reasonably complete picture of their options.
Costa Rica has MLS services, including systems available through professional real estate associations. However, no single platform represents the entire market. Your search may involve MLS listings, brokerage websites and cooperation between local agents. An online advertisement should be treated as a starting point: availability, price and property details still need confirmation.
For buyers considering Playas del Coco, Playa Hermosa, Ocotal or the surrounding Papagayo area, this makes local knowledge particularly useful. Finding a property is one step; understanding how it compares with your needs and lifestyle is another.
Choose your team before you choose your closing date
In Canada, buyers are accustomed to provincial regulation of real estate professionals. Costa Rica does not have an equivalent mandatory government licensing system for real estate agents. Professional association membership and training are useful credentials, but these are NOT mandatory, so they should not be confused with Canadian provincial licensing.
Ask about experience, professional affiliations, local knowledge and who the agent represents.
You should also engage your own Costa Rican lawyer. A Costa Rican notary public is a legally qualified professional who prepares the transfer deed and handles its presentation to the National Registry. Clarify who is advising you independently and who is acting as the closing notary.
My role as your real estate agent is to help you find the right property, negotiate the terms, coordinate the process and protect your interests. Your lawyer’s role is to assess the legal position.
Tip; See my important blogs and Videos on spotting the right lawyer (Notary) and escrow agency.
An offer is only as good as its wording
Canadian buyers are familiar with purchase agreements that set out the price, deposit, inclusions, closing date and conditions. Those details matter just as much in Costa Rica.
A Costa Rican transaction may begin with a purchase and sale agreement, followed by a formal purchase agreement/title transfer in spanish prepared by legal counsel. However, never assume a document is non-binding simply because it is called an “offer” or a “letter of intent.” Have your lawyer explain its effect before signing if you have questions.
Be specific about what you are buying. If the property is furnished, an inventory needs to be included in the due diligence. If repairs are promised, describe them and establish when they must be completed.
Tip; There is no standard purchase and sale agreement in Costa Rica. Many versions are used. An interesting observation I have developed; North American PSAs read very point form. PSA’s written by Costa Rican realtors and lawyers can read more like a running river. Neither is wrong, just different.
Know where your deposit goes—and how it comes back
The same deposit arrangements you used in Canada will not apply here.
Third-party escrow is commonly used in Costa Rican transactions. The escrow provider holds and disburses funds according to the purchase agreement and escrow instructions. Those documents should clearly establish the deposit deadline, release conditions and refund procedure.
Before transferring money, make sure you understand:
• Who will hold the deposit.
• What must happen before it can be released.
• Which contractual conditions allow you to cancel.
• How and when you must give notice.
• What happens if the parties disagree.
A due diligence period is useful only when the contract clearly explains your rights and responsibilities.
Tip; Although there are many escrow agencies. As with lawyers (Notaries), you will find most of us are very particular to recommend escrow agents with a good track record. There are a few details involved that vary from Buyer to Buyer and Seller to Seller.
Due diligence means more than a home inspection
A property can look beautiful and still have issues that affect ownership or your intended use.
Your investigation should address the registered owner, liens, legal access, boundaries, utilities and applicable land-use restrictions. A physical inspection and, where appropriate, a survey review complement the legal work. A registry search alone does not answer every question about a property.
For a buyer, the practical questions are straightforward: Can I use this property the way I intend? Can I renovate it? What needs repair? What documentation supports the seller’s statements?
If you intend to rent the property, ask your team to investigate that use specifically. If you are buying a condominium, request the rules, financial information and details of fees or proposed assessments.
Do this while your contractual protections are still available—not after you have committed unconditionally.
Beachfront does not always mean ordinary titled ownership
Foreigners can generally own titled property in Costa Rica in their own names. You do not automatically need a Costa Rican partner or a corporation.
However, maritime-zone concessions (beachfront) are different from ordinary titled ownership and carry special rules, including restrictions affecting foreign ownership. Before proceeding with a coastal property, have your lawyer identify exactly what legal interest is being sold.
An ocean view describes the setting. It does not describe the title.
Build a budget for this transaction
Avoid applying the closing-cost assumptions from your last Canadian purchase.
Costa Rican transactions can involve transfer taxes, registry charges, notarial fees, applicable taxes on professional services, escrow charges and separate due diligence expenses. Establish which costs each party will pay and request an estimate before committing.
For Canadian buyers, I also recommend a practical funding checklist: confirm the contract currency, conversion costs, transfer arrangements and when cleared funds must be available. If you need financing, establish what is available before relying on it in an offer.
The agreed purchase price is only one part of your total budget.
Tip; Most properties you will see are listed and sold in American Dollars (USD). That said, all transactions relating to legal fees, transfer taxes etc are settled in Costa Rican Colone (CRC) with the government. In some cases, the final price may adjust slightly according to the exchange rate.
Tip; In general closing costs including escrow range around 5%. If you happen upon a lawyer claiming to settle for drastically less? That’s a red flag. Personally, I check all my client’s closing statements prior to closing.
Bring your experience—and an open mind
You do not need to forget the lessons you learned buying real estate in Canada. Asking questions, inspecting carefully and understanding what you sign remain excellent habits.
What you should leave behind is the expectation that the process will be identical.
Costa Rica deserves its own informed approach. With the right property, clear agreements and an experienced realtor, you can move forward with a much better understanding of what you are buying.
Considering a home in Playas del Coco, Playa Hermosa, Ocotal or the Papagayo area? Let’s discuss your plans and walk through how buying here works.
Theo Veenstra
2Costa Rica Real Estate
LetsBuyCostaRica.com
Canadian requirements vary by province, and Costa Rican requirements depend on the property and transaction. Obtain real estate, legal and tax advice specific to your purchase.
Final Tips; See my videos and blogs on lawyers (Notaries), escrow and realtors. Personally, over the many years, I have realized using a good local lawyer is important. They generally have a good handle on what is happening locally that may affect your property and investment.