The Buying Process
The buying process alone of buying property can be a stressful one. Compound this with factors such as language barriers and not understanding the laws. However the reward of owning internationally, especially in Costa Rica can be huge. In this section we will go over a few of the laws and options you should know.
50 meter zone from the tide
Measured 50 meters from the beaches high tide is the property of the public. You are not supposed to build in this section. However it may be landscaped. This is why you will see hotels putting trees on the beach for shade. Just good things to understand before you buy at the beach.
Restricted Area
In the next 150 meters from the beaches high tide is owned by the municipal council. This property is only available to be leased. In this case if a foreigner wants to won in this zone, a Costa Rican citizen has to own more than 50% of this company. This is why you see S.A. companies usually acquiring this area for development of a hotel or resort. With the proper lawyer this zone can be used as an investment as long as laws are followed.
Fee Simple
The form of ownership that most will be familiar with is the Fee Simple ownership. At the benefit of foreign investors, this is the same property ownership rights that locals get. The concept is similar to the United States where the owner of the property has absolute right to use it, sell it, build it or rent it however they would like. This Fee Simple process is what has made ownership in Costa Rica such a hot commodity. However, this is all subject to the laws of Costa Rica on what you plan for the property.
Condominium Law
This law is very similar to Fee Simple in the effect of rights to build and use. However, Condominium Law is a law to benefit developers of many different types of properties. The set of laws is set by the developer to restrict and regulate certain aspects of what's built and developed. It is very important that you check to see if there are any restrictions or laws set in place by the developer. Most often this has been set in place to add rules and regulations to keep the property value up. Such as association fees to keep up the roads and rules on keeping up the look of the project. Always ask for the by-laws regulations before buying any property.
Title Guaranty
Once your property is acquired, always make sure you can get a title guaranty that will remain in place as long as you own the property. This will give you the peace of mind and lifetime security that your property will be backed by a title insurance company. A Title Guaranty is a cost effective way to protect your investment, be sure to have an agent explain this to you during your buying process.
