Legal Due Diligence When Buying Property in Costa Rica: 15 Frequently Asked Questions
About the Author
Herman Duarte, founder of Simple Legal Consulting, is an immigrant from El Salvador who, after living in Costa Rica for 13 years, is now a proud Costa Rican. He holds master's degrees from Stockholm University and the London School of Economics and Political Science. Passionate about writing and research, Herman is widely recognized as one of the top lawyers in the region and a leading expert in investment and immigration law in Costa Rica. Drawing from his personal experience as an immigrant, Herman uniquely understands the challenges of navigating the immigration system and is dedicated to helping others successfully transition to life in Costa Rica.
Buying property in Costa Rica can be an excellent investment, but a safe acquisition requires more than confirming that the seller appears in the National Registry.
A registered title does not necessarily confirm that the physical boundaries match the cadastral information, that a visible road provides legally protected access, or that the buyer can use or develop the property as intended.
Legal due diligence connects the title, cadastral, municipal, contractual and technical information to answer a more practical question:
Is this property legally safe to acquire for the buyer’s intended purpose, and under what conditions should the transaction proceed?
For a broader explanation of our real estate services, visit Buy Property Safely in Costa Rica.
1. What is legal due diligence when buying property in Costa Rica?
Legal due diligence is the process of collecting, reviewing and interpreting the legal information affecting a proposed property acquisition.
Depending on the property and the transaction, the review may include:
Registered ownership and title history
Mortgages, liens, annotations and other encumbrances
Cadastral information and registered surveys
Legal and physical access
Purchase agreements and related contracts
Municipal taxes and declarations
Land-use and zoning information
Condominium regulations, fees and obligations
Construction permits and regulatory matters
Coastal, environmental or property-specific restrictions
The scope should be adapted to the property. A condominium apartment, an undeveloped rural parcel and a coastal concession do not present the same risks.
2. Why should a lawyer lead the property due diligence process?
The lawyer identifies the legal questions that must be answered, reviews the public and transactional records, protects the buyer through the purchase agreement and coordinates specialist work when necessary.
Surveyors, architects, engineers and environmental consultants provide essential independent findings within their respective professional fields. The lawyer determines how those findings affect the buyer’s legal position and whether they require:
Additional information or investigation
A contractual correction
A condition before closing
A price adjustment
An extension of the due diligence period
Withdrawal from the transaction
The value of coordinated due diligence comes from asking the right questions in the right order and assigning each question to the appropriate professional.
3. Can foreigners buy property in Costa Rica?
Foreigners may generally acquire titled property in Costa Rica under substantially the same ownership system available to Costa Rican nationals.
However, buyers should not assume that every property interest is ordinary titled property. Coastal concessions, possession rights, corporate ownership structures and properties located in specially regulated areas require separate legal analysis.
This distinction is particularly important in the Maritime Terrestrial Zone, where concessions are governed by specific rules and foreign ownership restrictions may apply.
4. Should I contact a lawyer before signing an offer?
Yes, whenever possible, and remember NEVER, NEVER, NEVER sign any document without legal representation.
An offer, reservation agreement or purchase agreement can create binding obligations before the buyer has completed the necessary investigation. The agreement should provide:
Sufficient time for due diligence
Access to the property and relevant documents
Clear deposit and refund provisions
Rights to request information or corrections
Appropriate withdrawal rights
Conditions that must be satisfied before closing
If a binding agreement has already been signed, the buyer’s options will depend on its exact wording, contingencies and deadlines.
5. When should a land survey be requested?
A survey should be considered whenever boundaries, dimensions, area, access, topography, subdivision or development potential materially affect the transaction.
It is particularly important for:
Rural or undeveloped land
Large properties
Sloped or irregular terrain
Properties with informal roads or access routes
Land occupied differently from the cadastral plan
Properties intended for subdivision or development
Parcels where fences, walls or buildings are close to apparent boundaries
A registered cadastral plan is important, but it does not automatically establish that the physical conditions observed on the property match the registered information.
6. What can a licensed land survey professional verify?
The exact work depends on the agreed scope. A licensed land survey professional may:
Measure the property’s dimensions and area
Locate boundaries and reference points
Identify visible fences, walls, roads, structures or waterways
Compare field conditions with cadastral information
Prepare elevation or contour information
Identify potential encroachments
Detect possible boundary or cadastral inconsistencies
The surveyor reports the technical findings. The lawyer then evaluates how those findings affect the proposed acquisition and its contractual conditions. You can contact us for survey work, as we have licensed professionals in our team of professionals.
7. What happens if the measurements do not match the registered information?
A discrepancy does not produce the same legal response in every transaction. It must first be measured, understood and assessed for materiality.
Depending on the circumstances, the next step may involve:
Additional surveying or historical research
Clarification from the seller
A cadastral or registry correction
A contractual representation or indemnity
A price adjustment
An extension of the due diligence period
A condition that must be satisfied before closing
A decision not to proceed
The correct response depends on the nature, size and practical consequences of the discrepancy.
8. What is a land-use certificate in Costa Rica?
A land-use certificate is municipal information concerning the uses and development parameters applicable to a particular property.
Depending on the municipality, zoning area and proposed activity, it may address:
Permitted or restricted uses
Setbacks
Maximum coverage
Density
Height
Minimum lot size
Frontage requirements
Other applicable planning conditions
Land-use certificates and construction permits fall within municipal authority and must be interpreted together with the applicable regulatory framework.
9. Does a residential, commercial, agricultural or mixed-use classification guarantee development potential?
No.
A favorable land-use classification is important, but it is only one part of the analysis. Actual development potential may also depend on:
Legal access
Water availability
Wastewater solutions
Electricity and other utilities
Environmental restrictions
Watercourses and protection areas
Forest limitations
Coastal regulations
Slope and soil conditions
Subdivision requirements
Municipal and institutional approvals
A buyer should therefore avoid treating a general zoning label as a guarantee that a particular project will be approved.
10. What is an early site-potential review?
An early site-potential review is a preliminary process that connects the client’s objectives with the available legal, cadastral, land-use and physical information.
Its purpose is to identify opportunities, constraints and unanswered questions before the client invests substantially in architectural design, engineering or permitting.
It is not a construction permit or a guarantee of development rights. It is a structured first assessment that helps determine which professionals, studies and institutional consultations may be required.
11. Does Simple Legal Consulting provide architectural or engineering services?
Yes. Simple Legal Consulting provides access to architectural, engineering, surveying and other technical services through appropriately licensed professionals who work as SLC’s subcontractors.
These professionals perform and issue their work within their respective areas of expertise and under their own professional responsibility. SLC coordinates their participation and integrates their technical findings into the broader legal, transactional and project analysis.
12. Who hires and pays the independent technical professionals?
The preferred structure is for the client to retain the responsible professional directly or through another clearly documented arrangement.
Surveying, engineering, architectural, environmental and other specialist fees are ordinarily quoted separately from SLC’s legal fees unless the written engagement proposal expressly provides otherwise.
This structure preserves transparency concerning professional responsibility, scope, deliverables and fees.
13. How long does property due diligence take in Costa Rica?
The necessary period depends on:
The type and location of the property
The complexity of the ownership structure
The availability of registry and municipal records
The seller’s responsiveness
The need for surveys or technical inspections
The response times of municipalities and other authorities
The property’s intended use
Many transactions provide approximately 30 to 60 days for review. Complex coastal, rural, development or irregular properties may require additional time.
The contractual deadline should be negotiated around the actual scope of the investigation, rather than selected only because it is customary.
14. What happens after the due diligence report is completed?
SLC explains the findings and their practical consequences. Depending on the purchase agreement and the results, the buyer may decide to:
Proceed with the acquisition
Request additional documents
Require corrections before closing
Renegotiate the price or other terms
Add representations, warranties or closing conditions
Extend the due diligence period
Reconsider or withdraw from the transaction
Due diligence is not merely a collection of documents. Its purpose is to support an informed transactional decision.
15. Is closing included in due diligence?
Closing is a separate stage and should be clearly identified in the engagement proposal, that is defined from the first moment of the relation so there are no surprises.
If the client decides to proceed, SLC can provide the legal and notarial work required for the execution of the transfer of the property coordinating with the escrow companies, payment of applicable taxes and registration expenses, submission to the National Registry and Follow-up until registration is completed.
Protect the transaction before becoming unconditionally committed
The best time to identify a property problem is before the buyer loses the right to renegotiate or withdraw.
Simple Legal Consulting assists foreign buyers, investors and private clients with lawyer-led legal due diligence, contract protection, coordinated technical review, transaction structuring and closing in Costa Rica.
Learn how to buy property safely in Costa Rica.
Contact: HD@simple-legal.consulting
Office: Futura Business & Plaza, Office A105, Lindora, Santa Ana, San José, Costa Rica
This article provides general information and does not constitute legal, surveying, architectural, engineering or environmental advice for a particular property.