Potential Problems when investing in Costa Rica Real Estate

Costa Rica is regarded by most vacationers and investors as a safe and well-governed country. Although this is true investors should carefully approach the purchase of foreign property they are considering buying. Conducting the buying process long distance is not a good idea and investors need to make sure that all appropriate permits and documents are in order and that the property that they are considering is legally for sale and is able to be developed in the manner in which they want to develop it.

While most people would not consider buying real estate without seeing it first, many people have bought Costa Rica real estate sight unseen and discovered later that it was either an outright scam or that the property was undesirable or not as described. Some scams are conducted via the internet or ads placed in magazines and classifieds. Never purchase a Costa Rica real estate investment without checking out the property in person first.

Investors must ensure the property they are considering has the proper title, permits, and deed before they put any money down. The buying process in Costa Rica is different than the U.S. and an experienced attorney and real estate agent are integral parts of the buying process and in protecting your best interests and money.

Investors should also be aware that in many parts of the country there are regulations that limit the height of homes and buildings, require specific setbacks from property lines, and may limit other development factors such as landscaping and tree removal. If the property you are looking at is located in a protected area you will not be able to develop it and this information is important for investors to know. While most real estate transactions are complete with no problems many people are scammed or get a bad deal every year so be prepared when you are looking for a Costa Rica real estate investment.