Lawyers

Many people who are new to the Costa Rica never know on what familiar terms you will get with your lawyer if you buy property here and, especially, if you become part of the expat community living here.

The law form they use in Costa Rica is different then in the states. It is based off Latin law verse the U.S., which is based off of common law so even if you have lots of experience in the U.S. with law, it does not work the same in Costa Rica. In Costa Rica the law is much more written. The U.S. contracts can be valid simply written signed in dated where here they often have to be notarized and registered to be a strong contract that is enforceable by the court system.

Another major difference is the measures of liability. You’ll notice when traveling through Costa Rica that many of the canopy tours and horse tours there are no liability forms that need to be signed as in the U.S. That’s because the law does not recognize the same liability that is recognized in the U.S. It is much more lax here.

When purchasing property a real estate agent will negotiate, gather all the proper data, write an offer then pass the offer over to a lawyer who draws up a formal purchase agreement. The lawyer also does a property check on the title to make sure there are no liens or inconsistencies with a title. The agent and lawyer will work together coordinating a closing time and making sure the property is delivered as stated in the purchase contract.

After closing on a property, often times a lawyer will make additional corporations (Sociedad Anonimas) to set up bank accounts, electric, and other utilities. An additional corporation is formed to hold other assets such as vehicles for liability reasons.

After this process you will have developed a relationship with your lawyer, and if it is a good relationship lawyers often handle things like residency papers and help mange the corporations if you have income producing properties in Costa Rica with your accountant.

It is important to find a good lawyer. I recommend going off of referral, just as I would recommend doing just about anything in Costa Rica by referral by others who have had good experiences working with a person/company.

A good real estate agent should be familiar with Real Estate Laws in Costa Rica and also should be able to help recommend a great lawyer.