Although the real estate market is at a low to medium level due to different factors, such as the the current fiscal crisis in CR, the fact is that land remains (in my opinion) the most valuable asset available. Viewed from another standpoint, right now there are excellent investment opportunities in the real estate market due to lower prices. In addition, many sellers now offer the ability to finance up to 50-70% of the property for terms ranging from five to fifteen years at a competitive interest rates.
See this example of a low priced luxury condo located in Los Sueños Resort and Marina in Costa Rica with owner financing.
Once a buyer has come to a satisfactory agreement with the seller of a property, there are several points that need to be verified by the respective parties. Some examples that can be a good idea are:
1) Review the structure in full with an engineer, architect or property inspector.
2) Verify the boundaries with a topographer
3) Research the title in the National Register and confirm approvals given by various public institutions.
Now it is time to sign a purchase agreement, also called Reciprocal Promise to Buy and Sell and/or “Purchase Option” .
There is an existing tool named “Priority Reserve”, a figure that allows parties to file a document against a property in which the intention to award a contract for sale or mortgage is specified, giving it priority over any other document. However, when this legal option is chosen, the document is good for a maximum period of 30 days. Many negotiations require a longer term which is why a Purchase Option is a more flexible tool.
The basic regulations on Purchase Options can be found in articles 1007, 1022, and 1053 through 1058 of Costa Rica’s Civil Code. The option contract establishes the terms and obligations of the parties during the option period, as well as stipulating the selling price, the payment method, and the terms for the day of closing. Options are useful for selling other assets, but usually pertain to real estate transactions. There are different ways to have a Purchase Option, giving the parties a choice.
The most common way to make a Purchase Option is a contract awarded by a private document, which has the advantage of maintaining a certain degree of confidentiality among the parties and may be written in any language and still valid. However, it is also possible to award the contract on a public deed before a notary public for the purpose of getting the document annotated over the property in the National Registry, in which case the contract requires to be written in Spanish.
It is also legal to do what is called a Purchase Option between Absent Parties in accordance with Articles 1008, 1009, 1012 and 1013 of the Civil Code, which outline the criteria to enter into contracts, including options between parties. The terms can be written into a document signed by a party in one country and then faxed or scanned and emailed to the other party who also signs it and fax / scans it back. Of course it is subject to proof that both parties signed.
See this example of a low priced luxury condo located in Los Sueños Resort and Marina in Costa Rica with owner financing.
Once a buyer has come to a satisfactory agreement with the seller of a property, there are several points that need to be verified by the respective parties. Some examples that can be a good idea are:
1) Review the structure in full with an engineer, architect or property inspector.
2) Verify the boundaries with a topographer
3) Research the title in the National Register and confirm approvals given by various public institutions.
Now it is time to sign a purchase agreement, also called Reciprocal Promise to Buy and Sell and/or “Purchase Option” .
There is an existing tool named “Priority Reserve”, a figure that allows parties to file a document against a property in which the intention to award a contract for sale or mortgage is specified, giving it priority over any other document. However, when this legal option is chosen, the document is good for a maximum period of 30 days. Many negotiations require a longer term which is why a Purchase Option is a more flexible tool.
The basic regulations on Purchase Options can be found in articles 1007, 1022, and 1053 through 1058 of Costa Rica’s Civil Code. The option contract establishes the terms and obligations of the parties during the option period, as well as stipulating the selling price, the payment method, and the terms for the day of closing. Options are useful for selling other assets, but usually pertain to real estate transactions. There are different ways to have a Purchase Option, giving the parties a choice.
The most common way to make a Purchase Option is a contract awarded by a private document, which has the advantage of maintaining a certain degree of confidentiality among the parties and may be written in any language and still valid. However, it is also possible to award the contract on a public deed before a notary public for the purpose of getting the document annotated over the property in the National Registry, in which case the contract requires to be written in Spanish.
It is also legal to do what is called a Purchase Option between Absent Parties in accordance with Articles 1008, 1009, 1012 and 1013 of the Civil Code, which outline the criteria to enter into contracts, including options between parties. The terms can be written into a document signed by a party in one country and then faxed or scanned and emailed to the other party who also signs it and fax / scans it back. Of course it is subject to proof that both parties signed.
