The Closing Process

When Purchase a Beachfront Property

Money

The most common means of getting the initial deposit and the balance of the money into Costa Rica to purchase a beachfront property in Costa Rica is by wire transfer. Typically, the Buyer through the advice of their real estate professional will use the services of an Escrow Agent and Escrow Account.

Options for Signing the Transfer Deed

There are three standard procedures for closing on a beachfront property being purchased in Costa Rica.

1. Buyer and Seller are Physically Present
   The most common procedure for closing on a beachfront property is that both the Buyer and Seller are in the country and have decided on an agreeable location to meet and close. Typically, the Buyers lawyer will have prepared the transfer deed and it will have been reviewed by the Sellers lawyer. The deed will be read to and explained to the Buyer in their language of choice. Both Buyer and Seller will sign the deed. The Buyer will make payment via a “manager’s check” which is similar to a certified check. The notary will then register the new deed in the National Registry.
2. Limited Power of Attorney
   If one or both the Buyer and Seller can not be in Costa Rica but have given a Power of Attorney to someone to legally represent them, then the same process noted above would take.
3. Out of Costa Rica
   Though not a very common practice it is possible to close on a Costa Rican beachfront property outside of Costa Rica. If either the Buyer or Seller is unable to be in Costa Rica to close, and have not left a Power of Attorney, they can have a Costa Rican notary come to where they are and sign the transfer deed in the notary’s protocol book in the presence of the notary. The cost to have the notary perform this service is born 100% by the party that requires this service.

Closing Costs

As briefly mentioned above the closing costs to purchase a beachfront property in Costa Rica varies depending if you are purchasing a beachfront property by way of purchasing a Costa Rican S.A. with the beachfront property as an asset of the company, or a straight transfer of ownership from the Seller to the Buyer as an individual.

Standard closing cost for the transfer of ownership from the Seller to the Buyer as an individual will be 4.2% of the actual purchase price of the beachfront property. This fee is a combination of legal and notary service fees, as well as land transfer taxes and government stamp fees.

The cost to close on a beachfront property that is held by Costa Rican S.A. with the beachfront property being the asset of the corporation is 1.5%. This is the legal fee to change the “junta directive” (the board) of the company and the ownership of the shares of the company and to register these changes in the national Registry.