How to Navigate Property Due Diligence in Costa Rica

Why Due Diligence Matters in Costa Rica

The legal framework for property ownership in Costa Rica is well-established, but procedures can differ significantly from those in North America or Europe. Property records, zoning rules, building regulations, and coastal restrictions vary by region and municipality.

Because of this, legal due diligence in Costa Rica is not optional—it is essential for confirming ownership, verifying land-use permissions, and avoiding unexpected liabilities.

A thorough review also ensures the property aligns with your intended use, whether that’s residential construction, commercial development, investment rental, or land banking. Completing due diligence properly supports confident decision-making and long-term value.

Work With a Qualified Real Estate Attorney

Your due diligence begins with hiring a bilingual, Costa Rica–licensed real estate attorney. This is standard practice and essential to protecting the buyer.

Your attorney will:

• Conduct the title search

• Review land-use and zoning regulations

• Confirm boundaries and registration details

• Verify corporate ownership (if the seller is a company)

• Handle escrow, closing, and transfer procedures
  
  
  

We encourage buyers to interview multiple attorneys, ask for referrals, and choose someone who communicates clearly and patiently. A good attorney doesn’t just process documents — they guide you, protect you, and help you understand every step ahead.

The First 3 Things Your Attorney Should Review

At My Puerto Viejo Realtor, we recommend having an attorney review three key items before drafting a contract. It’s important to clearly understand whether the property’s plano (cadastral map) is properly registered and titled, who owns the property and how it is held, and whether the zoning carries any restrictions that could affect your plans.

Having this information upfront is imperative before pursuing a property and can save you significant time, money, and stress.

We hold ourselves to the same standard by only listing properties that our real estate attorney has already reviewed.

1. Confirm Title and Ownership in the National Registry

Every due diligence process must include a comprehensive title search through Costa Rica’s National Registry (Registro Nacional).

Your attorney will verify:

• The registered owner

• The property’s folio real (unique identification number)

• Boundaries and cadastral map details

• Mortgages, annotations, or lien

• Rights of way or easements

• Legal claims or pending disputes
  
  
  

You should only proceed if the title search confirms clear ownership and no unresolved issues. If the property is owned by a corporation, your attorney will also review corporate documents to confirm legal authority to sell.

This step ensures the seller has full legal rights to transfer ownership and protects you from hidden liabilities.

2. Review the Cadastral Map (Plano Catastrado)

The cadastral map outlines the property’s official boundaries, measurements, and land designation. During due diligence in Costa Rica requires confirming that:

• The map is current and matches the National Registry

• Boundaries reflect the physical reality on the ground

• No overlap exists with public roads, rivers, or neighboring properties

• Land-use classification is accurate
  
  
  

If discrepancies exist, a licensed surveyor may be required to prepare a corrected map. Addressing this early prevents future boundary disputes or legal challenges.

3. Environmental, Maritime & Special Zoning Review

Parts of the South Caribbean have layered protections. Your attorney will review:

Maritime Zone

• Properties within 200 meters of the high-tide line

• Whether the land is concession property

• Concession validity and expiration

• Municipal approvals

• Tourist zoning rules
  
  

Environmental Restrictions

• Protected trees

• River setbacks

• Wetlands

• Forest reserve boundaries

• SETENA requirements
  
  

Other Special Zones

• Kekoldi Indigenous Reserve

• Gandoca–Manzanillo Wildlife Refuge
  
  
  

These protections preserve biodiversity — and the lifestyle many buyers come here to enjoy.

Once these three preliminary checks are complete and you know you want to proceed, your attorney can begin drafting the Purchase and Sale Contract.

Once the Contract Is Signed: Next Steps

1.Choosing a Reputable Escrow Provider

Once the contract is prepared, you’ll select an escrow company to:

• Hold your deposit

• Securely transfer final funds

• Manage international wire compliance
  
  
  

Because many Caribbean sellers receive funds internationally, escrow ensures transparency and protection for all parties. A Costa Rican–based escrow company is especially helpful due to familiarity with local banking regulations and source-of-funds documentation.

After the contract is signed, buyers typically have 10–18 days to submit their deposit.

For more details, see our blog: Understanding the Escrow Process in Costa Rica.

2. Choosing a Reputable Inspector

Costa Rica does not license home inspectors, but experienced builders or engineers conduct visual inspections focusing on tropical conditions:

• Structure: foundations, posts, settling, rot

• Roofing: leaks, corrosion, drainage

• Electrical: grounding, panel condition, humidity exposure

• Plumbing: pressure, leaks, septic systems

• Pests: termites and insects

• Moisture & ventilation: mold, airflow

• Drainage: runoff and flood risk
  
  
  

For more details, see our blog: Home Inspections in the Caribbean.

3. Validate Property Taxes

Before closing, your attorney will confirm:

• Property taxes are current

• No outstanding municipal fees

• No pending assessments
  
  

This ensures you do not inherit prior debts.

4. Building Due Diligence for Existing Structures

If the property includes a home or commercial building, your attorney will verify:

• Building permits

• Municipal approvals
  
  
  

Both legal and physical reviews are essential before closing.

5. Corporate Structure Review

Many buyers hold property in a Costa Rican corporation for liability protection or estate planning. In some cases, sellers offer to sell the corporation itself.

Your attorney will review:

• Shareholder registry

• Legal representation

• Corporate tax compliance

• Annual filings
  
  
  

This step ensures you do not inherit hidden liabilities.

Final Escrow Payment, Closing & Registration

Once all due diligence steps are complete:

• Remaining funds are wired to escrow

• Closing occurs before a Costa Rican notary public

• Deed is executed

• Funds are released

• Transfer taxes are paid

• Registration is submitted
  
  
  

Registration typically takes several weeks. Once complete, you’ll receive official proof of ownership.

Summary: Practical Tips for a Smooth Due Diligence Process

• Never skip the title search

• Confirm zoning before planning construction

• Request documents from official institutions

• Work with reputable, local professionals

• Review findings carefully with your attorney

• Take your time — clarity now prevents surprises later
  
  
  

A thoughtful, well-supported due diligence process protects your investment and sets the foundation for long-term confidence in Costa Rica.

Move Forward With Local Insight & Trust

Property due diligence in Costa Rica doesn’t have to feel overwhelming. With the right team, the process becomes clear, predictable, and aligned with your goals.

If you want grounded guidance and real local experience, My Puerto Viejo Realtor is here to help. We know the market, we know the laws, and we know how to support buyers every step of the way.

Whenever you’re ready, we’re here to walk with you through the process.