The Real Due Diligence Checklist for Buying Property in Costa Rica
I’ve walked a lot of buyers through the due diligence process, and I can tell you the deals that go sideways almost always trace back to one of a handful of issues that are completely avoidable if you check for them upfront. This isn’t a generic “hire a lawyer” post — it’s the specific list of things I make sure get checked on every property before my clients sign anything. HOWEVER… Your best bet is to use an attorney to work through the process and ensure that nothing was missed or mis-represented and they should be working in conjunction with an experienced realtor as the attorneys don’t always have all the contacts to perform the full range of necessary due diligence work and often do not have field experience to know the extras to check for on each specific case.
1. Title Search and Registry Verification
Every property in Costa Rica should have a registered title in the Registro Nacional (National Registry), with a unique “folio real” number. The first thing your attorney should do is pull the registry record and verify: the seller listed on the title is actually the person selling, there are no liens, mortgages, or legal annotations against the property, and the property boundaries match what’s being represented. This costs very little (registry searches are cheap, and on a surface level are free lookups from a public database) and takes a day or two — there’s no excuse for skipping it, and any seller who pushes back on this step is a red flag.
2. Survey (Plano Catastrado) Verification
Every titled property has a registered survey plan (plano catastrado) on file with the Registro Nacional. A licensed surveyor (topografo) should verify that the actual physical boundaries on the ground match the registered plano — overlaps with neighboring properties, encroachments, and access easements are all things that show up here. I’ve seen situations where a beautiful property had a access road that technically crossed a neighbor’s land without a registered easement — fixable, but something you want to know about and resolve before closing, not after. A fresh survey typically costs $300-$800 depending on property size and terrain, but for large properties it can be much more costly but definitely worth it.
3. Water Rights and Water Source
This is one of the most overlooked items, and one of the most important in rural Costa Rica. Find out: is the property on a piped AyA/ASADA (rural water association) water system, or does it rely on a well or spring? If it’s a well or spring, is there a registered water concession (concesion de agua) from MINAE, or is it an informal arrangement with a neighbor? I’ve seen properties where “water included” turned out to mean an informal hose running from a neighbor’s spring with no legal water right at all — fine until that neighbor sells their property or has a dispute with the new owner. One key point when working with concessions that MANY people miss (even some attorneys unfortunately) is even if there is a concession, does the property have the right to physically access to the water source. If it is on your property, the answer is easy, if not then it can be more complex. Insist upon documentation, not just a verbal assurance – a property without drinking water is useless as a residential property. Fun fact, rainwater collection is permitted, but not a valid source for obtaining a permit.
4. Access Road Status — Public vs. Private
Is the access road to the property a public road (calle publica) maintained by the municipality, or a private road maintained by an informal agreement among property owners? Private roads are common in this area and usually fine, but you want to know: who maintains it, is there a maintenance agreement or association, and does the property have a legally registered right-of-way (servidumbre) if the road crosses someone else’s land? During rainy season, road conditions become a real factor — ask specifically about access during heavy rain, not just on a dry-season viewing day.
5. Zoning and Maritime Zone Restrictions
If the property is anywhere near the coast, verify whether it falls within the Zona Maritima Terrestre (maritime zone — the first 200 meters from the high-tide line, where foreign ownership is restricted, as I covered in my foreign ownership post). For inland properties, check the zoning designation (uso de suelo) with the municipality — this affects what you can build, whether commercial use is permitted, and any environmental restrictions, particularly relevant near rivers, wetlands, or forested areas subject to Costa Rica’s strong environmental protection laws.
6. Existing Structures: Permits and “Cabinas Sin Planos”
If the property has existing buildings, verify they were built with proper municipal permits (permiso de construccion) and are registered. It’s common in this area to find homes that were built without permits (“sin planos”) — this doesn’t necessarily mean walk away, but it does mean you should understand what it would take to legalize the structure (often possible, sometimes costly) and factor that into your offer. An unpermitted structure can also affect your ability to get certain types of financing or insurance later. A permit can also save you hassles if environmental rules change later, because you can prove the home was built legally and with permission based on the rules and regulations in place at the time of building.
7. Property Taxes and Municipal Debts (Cuenta al Dia)
Before closing, your attorney should obtain a “cuenta al dia” (current account statement) from the municipality confirming property taxes are paid up to date, with no outstanding debts attached to the property. In Costa Rica, unpaid property taxes can attach to the property itself, not just the previous owner — so this is a step you don’t want to skip. I cover the actual tax rates and amounts in my property taxes post.
8. Corporation Status (If Buying Through a Corporation)
Many properties here are held in Costa Rican corporations (sociedades anonimas similar to a C corp, or Sociedad de Responsabilidad Limitada which is similar to an LLC), and many buyers choose to purchase the corporation itself rather than transferring the property directly — this can have tax and liability advantages, but it also means you’re inheriting the corporation’s history. Your attorney should verify the corporation has no outstanding debts, lawsuits, or tax obligations, and that its corporate book (libro de actas) is in order. Buying a corporation with hidden liabilities is a real risk if this step is skipped. Most people create a new corporation at closing in order to stay away from any unfound issued.
How I Handle This With Clients
For every property I show seriously to a buyer, I work with the buyer’s attorney (independent from me — always use your own attorney, not one suggested solely by the seller. I have a number I trust and can ease the process) to get ahead of these items before an offer is even finalized, so there are no surprises during the 30-45 day closing period that’s typical here. None of these checks are exotic or expensive relative to the size of the purchase — they’re standard practice, and any reputable attorney here will run through this list as a matter of course. The risk isn’t that due diligence is hard in Costa Rica; it’s that buyers sometimes skip it because everything else about the process feels relaxed and “pura vida,” and that’s exactly the wrong place to relax.
The Next Step
Are you in Costa Rica now, or planning a trip here soon? I work with experienced local attorneys who run through this exact checklist on every transaction, and I make sure these items are addressed before we get to an offer — not after. Reach out by email at [email protected], WhatsApp at +506 8705-7239, or call my US number at (925) 989-3937.
Pura vida!
