Most Costa Rica Properties are in a system known as the Folio Real system. It is a registry used for the  public and courts to keep track of ownership rights and land boundaries. Before  any purchase of Costa Rica Real Estate a search in the Folio Real system needs to be done.  This process is important because your first question to the agent should be “is  the property offered by occupation or ownership rights”. Occupation Rights is a property or land that has not been registered in the Folio Real system. This is  where foreigners can run into problems because there is no registration in the  records that you own this property. There is a process to still register it  however it will be a long process and involve getting a lawyer. Now, ownership  rights are registered in the Folio Real and that is the equivalent to owning  land in the United States. You and others will have a legal record that  you own this land.

Something else to look into before you purchase Costa Rica Property is to do it as an individual or corporation. The limited liability  of Costa Rica equivalent is call Sociedad Anonima or S.A. as it’s commonly  seen. To qualify for this it must be incorporated by two people or more. As similar to starting an LLC in the states the S.A. will have to have a unique  name that is not used already. You have to treat it like an LLC and have a board of directors as well as documented hours. This system is good to use if you have a few investors and are looking to buy larger hectors of land or go in
as a development project. If you are just looking to buy a second home or move to Costa Rica you will be fine without a S.A.

One of the reasons Costa Rica is so popular with real estate is that the laws have been very good to foreigners. If you have been to Costa Rica you would probably already know how many Americans and Europeans have already purchased property in Costa Rica. This goes to show how Costa Rica is one of the friendliest places to buy in the world. Something that has scared foreigners in the past is the squatting rights. This states that if someone were to live on and improve your land while you’re away they can own part or all of it. This law is not in effect so people can steal your property; in fact  it was made so when someone passed away the land would not go to waste.  However, today with title insurance and property management companies this issue can be less of a problem. Many  companies will insure your property for a one-time fee and property management companies can look after your property for a monthly fee. Gated communities are also popular with foreigners so when they are out of the country their investment is safe.

The actual buying process is very similar to buying a  house in the United States. You will have an agent that will work with you and fill out all the necessary paperwork. You will have documents that show your land boarders and legal rights. There are a few differences between buying a home verses a condo. Condos will typically have association dues and rules and regulations for the community. It can be a little stress full because even if your agent speaks English, paperwork is generally in Spanish. Just keep in mind that many Americans and Europeans have gone through the same process. Agents though out Costa Rica can explain everything step by step and make the paper work make sense and go smoothly.