In the November 2008 issue, Forbes Magazine published a sensationalist and misleading article about Costa Rica Property Law: Trouble in Paradise

This is a recurring theme in publications within Costa Rica and in other countries. In order to generate traffic or sell more copies they look to publish alarming news about a popular destination for people retiring or purchasing vacation homes. The truth is that a VAST majority of people who purchase property in Costa Rica will never face this issue.

If you are an absentee property owner there are simple steps you must take to protect your investment:

• Thoroughly inspect the property and talk to the neighbors before the purchase.
• Make sure the property is completely fenced, and keep the fence corridor in good condition
• Inspect the property at least every three months (take time stamped photos or videos for evidence).
• Keep your property clean at all times. An overgrown property gives the impression it is abandoned.
• In rural areas you can sign a lease with a neighbor who will use the property for grazing or planting, that will keep your property tidy and squatters away.
• Check the National Registry every one to three months to monitor for activity.
• If you have a caretaker, make sure you have a labor contract and pay the Caja (so the caretaker doesn’t try to claim any rights to the property).
• Keep the property taxes paid up to date (shows “good faith” and “act of ownership”).

When you think of buying property in Costa Rica there are 3 simple steps you can take to make sure you don’t run into any trouble and appear in an exposé:
Step 1 – Find a reputable real estate agent. A reputable broker will provide you with references, and they have an established history of helping expatriates buy property in Costa Rica. They will be an long-term resident of Costa Rica, with an established presence in the community they operate in. They will help you make sure you don’t overpay for the property, that any property you look at fits your requirements, and that it suits your current and eventual plans.

Step 2 – Use a competent attorney to register the property. The National Registry is the central clearing house for real property in Costa Rica. The documents pertaining to the sale and transfer of the property must be registered immediately in the National Registry. The concept here is first in time, first in right. Using an established attorney, who specializes in real estate law, will assure that the sale is properly registered in a timely fashion. ( preferably one who speaks your language)

Step 3 – Protect your rights. Once the property is in your name you can verify its status any time at www.registronacional.go.cr Each property in Costa Rica has a unique number, you just submit that number to the database and the records for that property will appear. Any liens, mortgages or paperwork requesting any change to the property will show up on this report. You can do this once a month, or there is a company called Property Guard Costa Rica ( www.PropertyGuardCR.com ) that will do this for you and notify your local attorney immediately if they detect any activity in the National Registry. If you are an absentee owner, then you should make arrangements for someone you can trust to check on the property for you. If a squatter is discovered on the property within the first three months of occupation, eviction is an easy process (not requiring court action – just a police eviction). Find a reputable property management company that can pay your taxes, utilities, have the property cleaned and do regular inspections. Most real estate agents will have or know of a property management company that can provide these services and protect your rights.

Costa Rica property is traditionally a safe and profitable investment for any home owner or investor who follows the steps outlined above.