Costa Rica Title, Escrow, and Due Diligence Guide

Thinking about buying property in Costa Rica and wondering how title, escrow, and due diligence actually work? You want a smooth, defensible closing with no surprises after the ink dries. This guide walks you through how title is perfected, how to hold funds safely, how surveys and municipal checks fit in, and what changes near the beach or in gated communities. You will see the full sequence from offer to registration so you can move forward with clarity. Let’s dive in.

How title works in Costa Rica

Costa Rica records real estate rights in the national public registry, the Registro Nacional. A property is not fully transferred to you until a Costa Rican notary drafts and authorizes a public deed (escritura pública) and that deed is recorded, known as inscripción, at the Registro Nacional. Foreign and local buyers generally have the same property rights, but extra rules can apply to protected lands and the maritime-terrestrial coastal zone.

The notary’s role and the registry

In Costa Rica, a notary is a licensed attorney who has authority to draft and authorize the public deed. The notary confirms identities, includes required tax and stamp details, and typically files the deed for inscription. Your independent real estate attorney conducts due diligence, negotiates terms, and coordinates the process, even if a separate notary finalizes the deed.

What the registry shows

The Registro Nacional maintains a folio real (registry folio) for each property. Your attorney will obtain certified extracts to confirm:

• Current owner and legal description
• Registered liens or encumbrances, including mortgages and easements
• Pending litigation or annotations
• Chain of title through prior deeds

You should also review the plano catastrado (survey plan), municipal certificates for taxes and land use, and any environmental records relevant to the parcel.

Your due diligence roadmap

High-level checklist

• Confirm the seller’s identity and legal capacity, including powers of attorney if used.
• Review the title chain and encumbrances with certified registry extracts.
• Commission a current topographic or cadastral survey to confirm boundaries and encroachments.
• Verify municipal status: taxes, permits, fines, and land-use compliance.
• Check environmental and coastal restrictions for protected areas or the maritime-terrestrial zone.
• Confirm utilities, road access, and any public or private easements.
• Verify permits for existing structures and consistency with as-built conditions.
• Plan for lien releases so the property transfers free of encumbrances.
• Confirm applicable taxes and fees and check for fiscal liabilities that could affect the property.
• Search for pending litigation, including adverse possession claims.

Step-by-step sequence

1. Preliminary offer and reservation. You sign an offer and often place a deposit that sets due-diligence terms and timelines.

2. Retain counsel and open a file. Your Costa Rican real estate attorney starts registry and municipal searches and coordinates inspections.

3. Title search and registry extracts. Your attorney obtains the folio real and prior deeds from the Registro Nacional.

4. Physical inspection and survey. A licensed surveyor confirms boundaries, markers, and improvements and prepares a current plan if needed.

5. Municipal and environmental checks. Your attorney requests municipal tax and land-use certificates and reviews environmental records where relevant.

6. Resolve encumbrances. The team identifies mortgages or liens and sets a clear payoff and release plan for closing.

7. Draft and negotiate the purchase contract. Define timelines, closing conditions, escrow instructions, and dispute resolution.

8. Closing and public deed. You execute the escritura pública before a notary and arrange final payment per your contract or escrow.

9. Registration. The notary files the deed for inscription. Your rights are best protected once the transfer is recorded.

10. Post-closing. Update municipal, tax, and utility accounts, and record any condominium or HOA registrations if applicable.

Timing and red flags

Initial registry and municipal checks often take 1 to 3 weeks. Full due diligence with a survey and environmental confirmation commonly runs 2 to 6 weeks, longer for coastal or protected areas. Watch for chain-of-title gaps, unreleased mortgages, boundary disputes, unpaid municipal taxes, or unpermitted buildings.

Escrow and closing funds

Ways to hold funds

• Fiduciary trust. A bank or licensed fiduciary can hold funds in a fideicomiso and release them upon agreed conditions. This is common for international transactions.
• Escrow with a law firm or escrow agent. Some firms provide escrow-like services, but you should verify independence and safeguards. Many buyers prefer regulated fiduciary structures for neutrality.
• Direct payment at closing. Funds may be transferred to the seller at the signing of the escritura, often with the notary supervising and lien release evidence in hand.
• Conditional deposit agreements. Contracts can require deposits to be held and released based on milestones such as deed execution and registration.

Choosing escrow and setting instructions

Whenever possible, use a regulated fiduciary institution and confirm oversight by the appropriate financial regulator. Your escrow instructions should be precise about release conditions, including a signed escritura, lien releases, and, when agreed, confirmation of inscription. Confirm currency and wire routing, and be prepared for anti-money-laundering checks on international transfers.

Taxes, fees, and closing costs

Work with your attorney and notary to calculate transfer taxes, filing charges, and registration fees, and to confirm who pays what and when. Clarify real estate commissions in your contract. Expect modest fees for municipal certificates and any cadastral updates.

Surveys, boundaries, and utilities

Why a current survey matters

A current survey verifies the on-the-ground reality matches the registry. Your surveyor will confirm boundary markers, check for encroachments, and map easements for access or utilities. If the plan is outdated or inconsistent, request an updated plano and coordinate with your attorney to align the registry and cadastre.

Municipal and environmental checks

Ask your attorney to obtain municipal certificates confirming taxes are current and that land use supports your intended plan. For properties near protected land or the coast, review environmental files and approvals. Utility confirmations for water, electricity, sewage, and road access should be in writing and aligned with recorded easements.

Beachfront nuances to know

Costa Rica’s beaches are public. The maritime-terrestrial zone adjacent to the shoreline is a regulated public regime where private ownership is restricted. If a property includes or touches this zone, you may need concessions or special permits, and construction is often limited.

Coastal parcels also carry physical risk from erosion and storm surge. Ask for a technical assessment and a legal opinion on the exact boundary of the maritime-terrestrial zone and any historic concessions. Investigate recorded access easements for beach entry and verify environmental approvals for any development plans.

Gated communities and condominiums

Many gated communities operate under a formal condominium regime with bylaws, HOA dues, and shared property rules. Others are subdivided lots that rely on private road agreements or easements. Review condominium statutes, HOA minutes, budgets, assessments, and any ongoing litigation.

Clarify who owns and maintains roads, water systems, sewage, and security installations. In new projects, confirm when control of common areas transfers from the developer to owners and whether escrows or guarantees exist for incomplete infrastructure.

Selecting and vetting your team

Who you need on your side

• Independent Costa Rican real estate attorney to manage due diligence and contracts
• Notary to prepare and authorize the escritura pública and file for inscription
• Licensed surveyor to verify boundaries and prepare or update the plano
• Fiduciary or escrow institution when you want a neutral, regulated fund holder
• Local broker to provide market insight and coordinate property access
• Environmental consultant for coastal or regulated-area assets

How to vet advisors

Confirm professional licenses and registrations, including attorney membership with the Colegio de Abogados and surveyor credentials. Ask for recent, relevant transaction references and sample due-diligence reports. Use written engagement letters that define scope, fees, timelines, and deliverables, and check for conflicts of interest.

Sample conservative timeline

• Days 0–7: Offer signed, deposit placed, attorney retained
• Days 7–21: Registry extracts and municipal certificates obtained; survey ordered
• Days 14–35: Survey completed and reviewed; environmental checks as needed
• Days 21–45: Encumbrances resolved; contract and escrow instructions finalized
• Days 45–60: Closing before the notary; funds released; deed submitted for inscription
• Post-closing: Registration recorded; municipal, tax, and utility accounts updated

Protect your closing

Your closing is not complete until the deed is recorded at the Registro Nacional. Inscription protects you against third-party claims and anchors your rights in the public record. Build your contract and escrow around clear conditions that carry you from signing to successful registration, with each release supported by documents.

If you want seasoned guidance and introductions to vetted local counsel, surveyors, and escrow institutions, connect with Peter Kempf International for advisory-first support and private access to opportunities aligned with your goals.

FAQs

What is the Registro Nacional in Costa Rica?

• It is the national public registry that records property ownership, legal descriptions, liens, and other rights. Your purchase is best protected once your deed is recorded there.

Can foreigners buy property in Costa Rica?

• Yes, foreigners generally have the same property rights as locals, but special restrictions can apply to protected lands and the maritime-terrestrial coastal zone.

Why use escrow or a fiduciary for a purchase?

• A regulated fiduciary or escrow adds neutrality and security by holding funds and releasing them only when clear conditions, like deed execution and lien releases, are met.

What is the maritime-terrestrial zone on the coast?

• It is a regulated public zone next to the shoreline where private ownership is restricted and development requires special approvals; beaches are public in Costa Rica.

Do I need a new survey if the seller has one?

• Often yes. A current survey confirms boundaries, markers, easements, and encroachments and helps align the on-site conditions with the registry and cadastre.

When do I legally own the property?

• You gain enforceable protection against third parties once the public deed is signed before a notary and recorded at the Registro Nacional, known as inscription.