We developed this project approximately 15 years ago. We chose this land for the perfect combination of pristine unspoiled beaches and land with rolling hills, streams and old indigenous trees. We then planted 50,000 hardwood trees which are now over 40 ft tall. The hardwood trees give Government approval as a reforestation project, giving the option of selling the land as a tree farm to buyers that can give them tax write offs almost equal to the purchase price.
The project is located in the center of what has now become known as the gold coast because of hundreds of beautiful beaches and the best weather on the west coast. Nosara, approximately ½ hour south of us has an airport with daily flights to both international airports. It has many restaurants, markets, hardware stores, medical assistance, pharmacies, post office and much more. Tamarindo and other beach resorts (approximately 1 hour north) has much of the same amenities. The land and development immediately around San Juanillo is more rural in nature, although there are numerous restaurants, a new larger market and a new hardware store close by.
The roads in our area, are still unpaved; but, the government has committed to paving them in 2010 which will greatly increase property values. Because lots have increased so much in price the last couple of year’s we decided to subdivide a couple of our larger lots into ½ to 1 ¼ Acre lots with prices starting at only $39,500 and for a limited time only we are asking only $7,000 down with 10 year financing at 10% Interest. These prices remain way below any projects around us – for example – the project in front of us starts at $150,000 and goes up to $350,000.
The following is a brief explanation of how a land purchase works in Costa Rica:
A foreign purchaser has the same property ownership rights as a Costa Rican citizen – fee ownership.
Sale Documents: Property is transferred from seller to buyer by executing a transfer deed (Escritura) before an attorney who is also a notary public. The transfer deed contains the entire agreement between the parties and refers to a legal description (plano catastrado) which is a very complete surveyor’s map of the property. Both the Escritura and the Plano Catastrado are registered in the public registry (Registro Nacional) and the attorney representing the buyer can examine the exact status of the property prior to purchase. When the seller is financing the purchase, the seller has the right to choose the attorney. For their protection, the buyer should hire their own attorney.
Closing costs: The entire closing costs usually run from 5 to 7 percent of the purchase price; however, these costs can sometimes be reduced. This possibility can be discussed with your attorney. The value of the property cannot be registered below the amount of the mortgage (if there is one) since the mortgage is also registered.
Timing: If there are no defects in the transfer documents – it should be registered within 45-60 days after presentation by the attorney. This could be delayed by any changes to the legal description (Plano Catastrado) as it must be registered prior to the transfer deed (Escritura). If you choose to purchase your land as a Costa Rican Corporation, as many people do, the corporation must be formed first, extending the processing time.