Costa Rica laws and
constitution protect private ownership of land and foreigners
enjoy the same rights as citizens. Neither citizenship,
residence, nor even presence in the country is required
for land ownership.
In Costa Rica, property is transferred from seller
to buyer by executing a transfer deed (escritura)
before a Notary Public. Unlike common law countries,
such as the United States and Canada, where the role
of the notary is limited to authenticating signatures,
in Costa Rica the notary public has extensive powers
to act on behalf of the state. The notary public must
be an attorney and she or he may draft and interpret
legal documents, as well as authenticate and certify
the authenticity of documents.
Costa Rican law requires that all documents relating
to an interest and/or title to real property be registered
in the property section of the Public Registry (Article
460 of the Civil Code). Most properties have a titled
registration number known as the folio real, and the
records database can be searched with this number
or by name index. The Public Registry report (informe
registral) provides detailed information on the property,
including the name of the title holder, boundary lines,
tax appraisal, liens, mortgages, recorded easements,
and other recorded instruments that would affect title.
As corruption is among the obvious cons to living
in this country, our advise is to seek good professional
assistance. Make sure your choice of legal assistance
is a solid one, choose a well known lawyers office.
Whether you purchase an existing property or decide
to build your dream house be well informed about the
procedures involved so that you ensure your investment
will be a profitable one.
Buying concessions in the maritime zone
Concession property is more commonly known as beachfront property. In Costa Rica, 95% of beachfront property is considered concession property and is governed by the Maritime Zone Law and other specific regulations including but not limited to special dispositions stated by municipalities and the ICT (Costa Rican Institute of Tourism). These legal dispositions set forth the conditions under which foreigners and local residents can own concession property. A concession in Costa Rica is defined as the right to use and enjoy a specific property located on the maritime zone for a pre-determined period of time. The state, through its respective municipality, grants this right. Note that the first 200 meters measured horizontally from the high tide line defines the boundary of the maritime zone. This zone also includes islands, pinnacles of rock, mangroves, estuaries, small islands and any small natural formation that overcome the level of the ocean. This 200 meter zone is divided into two areas:
1. Public Area: The first 50 meters measured horizontally from the high tide line. This zone is not available for ownership of any kind. No kind of development is allowed except for constructions approved by governmental entities. Further, this area is deemed a public area and any individual wishing to utilize this area for enjoyment has the right to do so. In other words, there are no truly private beaches in the Maritime Zone.
2. Restricted/Concession Area: The next 150 meters. This area is available for Concessions to be granted. A concession is in essence a “lease” on the property granted to the lessee for a specific period of time. Normally the concession period is granted for 20 years. An owner of a concession may build on that concession, subdivide the concession and perform other acts to the property. However, appropriate permits from the local municipality must be obtained.
3. Ownership Limitations: Unlike fee simple property, foreigners do not have the same rights as citizens when it comes to purchasing concession property. The law establishes that foreigners cannot be majority owners of a concession property. A foreigner can, however, enter into a partnership with a Costa Rican citizen where the ownership is divided 49% / 51% between the foreigner and Costa Rican respectively. One exception is if a foreigner has resided in Costa Rica for at least five years, then they may be majority owners of a concession. Both foreigners and Costa Ricans alike are required to purchase all Maritime Zone property through concession.
Link to: http://www.stewarttitlelatinamerica.com/
