Legal Due Diligence on Costa Rican Property
Due diligence is the part of a Costa Rican purchase that decides whether the rest of it is worth doing. It is also the part most often reduced to a quick registry printout.
A proper estudio registral tells you who holds title, what liens and mortgages are recorded, what easements burden the property, and what annotations are pending. What it does not tell you is equally important, and that gap is where deals fail.
Beyond the registry
We verify the cadastral survey against the property as it physically exists, because a registered plan and a fenced lot are frequently not the same thing. We confirm water availability, which in Guanacaste is often the binding constraint on whether anything can be built. We check municipal standing, land-use classification, and whether the property falls wholly or partly within the Maritime Zone. Where a corporation holds the property, we review the corporate books, the shareholder record and the legal representation.
When to do it
Before funds are committed and while the purchase agreement still gives you a way out. Due diligence performed after signing is a report, not a protection.
What our report covers
- Ownership, liens, mortgages, easements and pending annotations at the National Registry
- The cadastral plan compared with the lot as it exists: boundaries, area, access and encroachments
- Water availability, in writing, from the ASADA or AyA that serves the property
- Land use, zoning plan where one is in force, and setbacks from rivers, creeks, mangroves and public roads
- Whether the property touches the Maritime Zone, a protected area or a forest restriction
- Municipal taxes, property tax declarations and, where applicable, the luxury home tax
- Construction permits for what has already been built
- Condominium bylaws, rental restrictions, dues and pending assessments
- When a company holds the property: books, shareholders, legal representation, taxes and filings
You receive the findings in writing, in English, with a clear statement of what is a defect that must be cured before closing, what is a risk you may decide to accept, and what is in order.
Frequently asked questions
Is a registry report enough?
No. The registry shows what has been recorded. It does not show whether the fence matches the plan, whether the lot has water, whether the house was built with permits or whether the condominium allows the rentals you are counting on.
How long does due diligence take?
For titled residential property with clean records it normally fits within the due diligence period negotiated in the offer. Concessions, rural land, properties held by companies and anything that requires a surveyor on site take longer, and the period should be negotiated with that in mind.
Do I need a surveyor?
Not always. When the registered plan and the physical lot do not match, or when boundaries are not marked, we bring in a licensed surveyor and coordinate the work.
What happens if you find a problem?
There are three paths: the seller cures it before closing, the price or terms are renegotiated, or you withdraw and recover your deposit. The third is only available if the agreement was written to allow it, which is why we ask to see the offer before you sign it.
Can the seller’s lawyer do the due diligence?
They can, and their report will be addressed to their client. You are entitled to an opinion from counsel who answers only to you.
Munduss Legal — José David Garro Castro, Attorney at Law and Notary Public. Office in Tamarindo, Guanacaste. Request a consultation.
