Real Estate Closing Procedures in Costa Rica, Step by Step
Real estate closing procedures in Costa Rica follow a set path: a written purchase agreement, a due diligence period, signing the transfer deed before a notary-attorney, paying the transfer tax, and registering the sale at the National Registry (Registro Nacional). Ownership officially passes when registration is complete. A clean transaction typically takes 60–90 days from accepted offer to registered title.
Knowing the real estate closing procedures in Costa Rica ahead of time helps both buyers and sellers prepare. Here is what happens at each step. This is general information, not legal or tax advice.
Step 1: Sign the Purchase Agreement
The process starts with a promissory purchase agreement, known as the Opción de Compraventa. It sets the price, the deposit and who holds it, the due diligence period, any conditions, and the target closing date. A deposit of 5–10% is typical and should be held in escrow, not paid directly to the seller or an agent.
Step 2: Complete Due Diligence
During the due diligence period, typically 30–45 days, the buyer’s attorney reviews the property before closing. That review usually covers the registered title and any liens or annotations, the cadastral survey (plano catastrado) compared with the physical boundaries, legal access, property tax status with the municipality, water and utility rights, permits for existing construction, and condominium records where relevant.
If the review turns up a problem, the agreement should allow the buyer to renegotiate or withdraw.
Step 3: Prepare the Closing Documents
Before the closing date, each party gathers what the notary needs. Buyers and sellers should expect to provide valid identification, such as a passport, and a company that is buying or selling needs its corporate documents and authorization. Sellers should be ready to show that property taxes and municipal charges are paid. Both sides should confirm how the deposit, closing costs, and any adjustments will be settled.
If someone cannot be in Costa Rica for the signing, ask your attorney whether a power of attorney can be used.
Step 4: Sign the Deed Before a Notary
Costa Rica closings are handled by a notario público, an attorney authorized to act as a notary. The notary prepares the transfer deed (escritura de compraventa), confirms the identity of the parties, and records the signing in the notary’s protocol book. Closing documents are in Spanish, so anyone who does not read Spanish should arrange a translation or an interpreter.
Step 5: Pay the Transfer Tax and Register The sale is subject to a property transfer tax. The law makes the buyer and seller responsible for it in equal parts, and it is calculated on the real value of the transaction, which cannot be lower than the property’s highest registered value. The notary then presents the deed to the National Registry. Title officially passes when registration is complete, typically 2–4 weeks after signing.
What Closing Costs Include
Closing costs cover the attorneys, the real estate commission, and other legal costs such as the transfer tax, registry charges, and stamps. The purchase agreement sets how those costs are shared. Legal and notary fees are professional services, and Value Added Tax applies to taxable services, so ask for an itemized written quote that shows fees and taxes separately.
After Closing
Once the transfer is registered, the new ownership appears in the National Registry records. The buyer then takes on the annual property tax, which is paid to the municipality on the property’s registered value, along with utilities and any condominium fees.
How GAP Real Estate Helps
GAP Real Estate works with buyers and sellers of any nationality, and Costa Rican residency is not required. On GAP listings, the purchase agreement is reviewed by attorneys for both parties, and GAP coordinates the process through due diligence and closing so each step stays on track.
Frequently Asked Questions
How long does closing take in Costa Rica?
A clean transaction typically takes 60–90 days from accepted offer to registered title, including a due diligence period of about 30–45 days.
Who handles the closing?
A notario público, an attorney authorized as a notary, prepares the transfer deed, oversees the signing, and presents the deed for registration.
Who pays the transfer tax?
The law makes the buyer and seller responsible for the transfer tax in equal parts.
When does ownership officially change?
When the transfer is registered at the National Registry, typically 2–4 weeks after signing.
Can I close without traveling to Costa Rica?
Possibly. Ask your attorney whether a power of attorney can be used for your transaction.
This article is general information only and is not legal, tax, or financial advice. GAP Real Estate is not a legal or tax advisor. Speak with a qualified Costa Rican attorney or accountant about your own transaction.
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Planning a purchase or sale? Browse current Costa Rica properties, read the Costa Rica Buyer Guide, or email info@gap.cr.
