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Houses, Land, Beach front, Farms, Investments -
Puerto Viejo, Costa Rica
"Most of Wolf's Realty
business is Commercial, with a lot of small
Bed and Breakfasts and businesses changing hands"
(TicoTimes 1998). Wolf's Realty
advice to potential buyers interested in Costa
Rican property: " Be careful!. There are
all kinds of land categories here - Beach, (
public zoning and restricted zoning ) National
Wildlife Refuge, titled and untitled land."
Even though we do have properties, such as
Farms and Lots on the pacific coast, and a select
listing of homes in the central valley
"Our specialty is in properties on the
Caribbean Coast."
We offer the following remarkable properties,
projects and investment deals
Send inquiries to Wolf Bissinger / Email:
realestate@playachiquitalodge.com
Telephone in
Costa Rica: Office: (506) 750
0062 / Fax: (506) 750 0408
Mailing Address:
Playa Chiquita Lodge 5 k. de Puerto Viejo Talamanca
- Limon Costa Rica
Buying beach property
Public Law No. 6043 of 2 March1977
establishes a restricted coastal zone called
the "Zone Maritimo/Terrestre." It
comprises a 200 meters long strip of land along
both the Pacific and Atlantic coasts of Costa
Rica, measured from the high tide line toward
the inland. This "Maritime/terrestrial"
restricted zone is given a differentiated treatment
since it is owned by the national government
and administered by local governments (municipalities).
It is divided into two sections:
a) The Public Zone (Zone Publica):
50 meters wide strip of land between the high
tide line and the outer line of the "Restricted
Zone" (Zone Restringida).
b) The Restricted Zone (Zone Restringida): 150
meters wide strip of land from the inner limit
of the Public Zone toward the inland.
No private individual or corporation
is allowed to build on or use for private purposes
any portion whatsoever of the Public Zone. However,
they may obtain a lease concession on the Restricted
Zone for private or business use.
Leases on the Restricted Zone
are authorized by the Instituto Costarricense
de Turismo (ICT) and granted by the relevant
municipality. Beneficiaries of lease concessions
are granted the use, occupation, and possession
of the land, including the right to build.
No lease concessions are granted
to non-Costa Ricans who have resided in the
country less than 5 years, nor to foreign companies,
nor to national companies of which 50% or more
of its stock is owned by non-Costa Ricans.
Lease concessions may be transferred
with the previous approval of the municipality
and the ICT. They are generally granted for
periods of time that range from 5 to 20 years.
The lease granting municipality is entitled
to charge a small leasing fee. The lessee can
apply for an extension of the lease concession
at the Municipality. Extensions are normally
granted with the previous approval of the ICT.
There are very few exceptions
to Law No. 6043 of 2 March 1977. Beach front
land that is not regulated by this Law can be
found, but it is extremely unusual to have property
titles in areas within the restricted 200 meters.
An American investor wishing
to acquire a lease concession must do it through
a Costa Rican corporation. Land not included
in the Public or the Restricted Zones can be
purchased individually and with no special restriction
or limitation
Before acquiring a lease concession,
the buyer would ask his or her attorney to examine
the Municipality Records, verify the seller's
ownership status, as well as general tax and
leasing dues. A similar procedure applies to
the purchase of non-restricted land described
above.
Purchase of Land through
Costa Rican Companies
In any of the above mentioned
cases, both Costa Ricans and foreigners are
always advised to buy land through a company.
Among the advantages of forming companies for
this specific reason, the reduction of personal
liabilities and taxes are the most outstanding.
Ownership of recordable assets,
such as real estate and cars, has become the
main purpose of most of the registered companies
in the country. Hence this method of "indirect"
possession, is the most highly recommended means
of managing recordable assets.
Once formed, a corporation
may be fully controlled by a sole shareholder.
This allows the concentration of corporate powers
which allows a single individual, or a small
group of people, to operate the company in a
relatively simple and inexpensive manner. Your
attorney will be able to help you find the best
ways to ensure control of the company and the
overall handling of corporate power.
Some basic guidelines
for buying real estate
Public Record Office System:
With few exceptions, land ownership must be
registered at the Property Department of the
Public Record Office. Liens, encumbrances and
easements imposed on a recorded property should
also be duly registered to have any effect on
third parties. To ensure the buyer that he is
acquiring land from its legal owner, and that
the property is free of mortgages and other
kinds of encumbrances, a thorough title search
of the public records must be performed as a
previous and necessary step for buying real
estate.
Legal Procedures in the Deeding
and Transfer of Land: Depending on the legal
regulations applicable to a specific piece of
land, there are various kinds of property ownership.
1. Recorded Land: Property
duly registered at the Public Record Office.
2. Non-Recorded Land: Property
subject to be registered at the Public Record
Office which has not been duly recorded.
3. Non-Registerable Land: Property
which is not subject to be recorded at the Public
Registry by law.
1.Recorded land transfers must
be granted through a public deed. To this effect,
the parties must appear before a Costa Rican
Notary Public (to be chosen by the purchaser)
who will insert the title transfer in his Protocol.
A Notary Public is a licensed Attorney at Law
who is endowed with "public trust, "
and the right to validate and legalize all contracts
and deeds. To protect his/her investment, the
buyer is entitled to appoint his or her attorney
to perform as the Notary Public in the transaction.
Prior to the signing of the
deed, the buyer or his/her attorney are expected
to investigate ownership status and encumbrances
at the Public Records Office to make sure the
seller's title is clear and lien free. The purchase
deed, as well as any related liens granted by
the purchaser, must be presented by the Notary
to be duly registered in the public records.
It is also the Notary's duty to complete all
recording procedures necessary to provide the
title transfer with full efficacy.
Expenses and legal fees derived
from these procedures may range from 6-7% of
the total amount of the transaction. These costs
will be shared by the parties on a 50%-50% basis
if they have not agreed otherwise.
2. Non-Recorded Land: Real
estate that fulfills all the requirement the
law establishes for legitimate ownership but
has never been recorded, may be transferred
through a public deed, or even a private contract.
It is advisable that the purchase of non-recorded
land be performed with the advise and participation
of an Attorney at Law.
The transfer of non-recorded
land cannot be registered at the Record Office.
A judicial procedure is required to obtain authorization
to inscribe real estate ownership for the first
time in the public records.
Even if the ownership of non-recorded
land is valid and has most of the legal effects
of a registered title, it lacks the securities
that are granted by the Record Office.
3. Non-Registerable Land: Because
of special regulations, some areas are not subject
to private ownership. This is the case of most
of the beach front property, which is regulated
by Law No. 6043 of 2 March 1977 and will be
explained in detail later on. Sometimes non-recordable
land may be subject to be legally used or possessed
by individuals or private companies, either
through a concession granted by the Government,
or the transfer of legitimate possession by
the former possessor. Requirenents to Land Ownership:
Apart from the restrictions established for
non-registerable land and other special cases
determined by the law, any individual, national
or foreign, may legally own land sheltered by
our Record Office system. Nonetheless, for legal
and economical reasons, it is advisable that
the acquisition of real estate is performed
through a Costa Rican company.
Shipping Your Vehicle
To Costa Rica
There are three different ways
to transport your vehicle to Costa Rica: air,
sea & land. The law regarding the importation
vehicles is the same. Below are the procedures
for clearing a car though customs if shipped
by sea. If you drive or have your car flown
into the country, the same requirements exist
fir obtaining and re-newing your drivers permit.
Most vehicles arrive by sea, via cargo ships.
The largest port in Costa Rica is Puerto Limón,
loacated on the Atlantic Coast. A second port,
Puerto Caldera, is located on the Pacific Coast.
Unless your vehicle is shipped from California
or Vancouver, it will likely arrive in Puerto
Limón. The length of time required to
ship your vehicle depends on the shipping company
you select, but the average is 4-10 days.
It is advisable to use the
assistance of a freight forwarder/customs broker.
Most North American operations work with local
brokers to handle the Costa Rican customs.Vehicles
may be shipped either in a container or on a
car deck. The container is a more secure means,
as the car is sealed in prior to departure,
and not opened until it arrives at customs.
Car decks accommodate numerous vehicles, all
of which are driven on and off the vessel. The
possibility of damage and theft exists more
with this method of shipment. If you can afford
it, a container is recommended.
Depending on the customs broker,
you may be able to clear your vehicle through
to San José and avoid customs at the
port of arrival. An additional fee is required
for this service. Vehicles clear customs more
quickly in San Jose (of great importance if
are clearing the vehicle yourself). Clearing
a vehicle yourself is not complex, but being
fluent Spanish is a MUST. This procedure can
be accomplished in one day if you follow the
instructions EXACTLY. Clearing your vehicle
through either port is a much more complicated
procedure. Travelling there can be difficult
and there is no guarantee that the vehicle will
clear in one day. If you intend to clear it
yourself, we suggest having the car shipped
through to San José.
As a tourist, you can drive
the vehicle for three months without paying
taxes. The time begins when you enter the country,
not the vehicle. This is very important to keep
in mind. You will be required to pay a local
tax, plus some additional fees, all of which
add up to around $90.00 US. At the end of three
months, you have the may extend this for an
additional three months. In order to do this
you must follow the following procedure:
You must leave Costa Rica prior
to the three month limit and remain anywhere
but Costa Rica, for 48 hours. Upon re-entry,
they will re-stamp your passport,allowing you
to drive the vehicle for three additional months.
If you wait until the three month period is
up, you are required by law to pay the taxes
on the vehicle. Do not drive the vehicle if
the permit has expired. Any vehicle being driven
after the permit has expired is considered an
abandoned vehicle. The police have the right
to confiscate the vehicle permanently.
Before shipping the vehicle,
take the license plates off the vehicle and
either carry them down with you or ship them
with a mail carrier. Plates are often stolen
during transport or when the vehicles arrive.
Thieves use the stolen plates to place on cars
stolen within Costa Rica.
Other Considerations
once your car has cleared:
Keep the proper documents in
the vehicle at all times. If you are pulled
over and cannot produce the documents, they
will detain you and impound the vehicle.
Do not, under any circumstances,
allow a local Costa Rican to drive your vehicle.
By law, only the person(s) on the permission
slip can drive the vehicle. It is illegal for
a Costa Rican to drive a tourist vehicle. The
transit police have the legal right to impound
the vehicle. A hefty fine could result, or you
may be forced to pay taxes on the vehicle.
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