Many people arrive in Costa Rica, fall in love with the scenery, and rush into a purchase. Buyers sometimes assume the process is the same as in their home country. It is not. General knowledge about Costa Rica real estate often highlights that property ownership is generally safe, but titles must always be verified at the National Registry. If a title is incomplete, disputed, or unclear, it can lead to years of legal battles. Work with a local real estate attorney who can review documents thoroughly. Do not rely only on the seller’s word or an agent’s assurances.
Confusing Concession and Fee Simple Property
Another frequent mistake is misunderstanding the type of property being purchased. Costa Rica recognizes fee simple ownership, which is the cleanest and most direct form of title. However, land along the coast that falls within the Maritime Zone is typically concession property. Concession means you are leasing from the municipality, not owning outright. The terms, renewals, and requirements are different. Many first-time buyers confuse the two and assume they have full ownership when they do not. Understanding the difference is essential before you commit to a deal.
Skipping Independent Property Inspections
Some investors think a beautiful ocean view is enough proof of value. They forget that a property’s structure, water access, and land boundaries matter even more. Failing to inspect can create costly problems later. Houses may have drainage issues, termite damage, or poor construction hidden under fresh paint. Land might lack legal water access, which is crucial for development. Always hire an independent inspector and surveyor. The modest cost upfront will save money and stress in the long run.
Ignoring Zoning and Building Restrictions
Costa Rica enforces zoning regulations that differ across municipalities. A plot of land that looks perfect for a rental villa may be zoned for agricultural use only. Buyers who do not check local zoning laws risk owning land they cannot develop as planned. Even small remodeling projects may require permits. Respecting these rules is important to avoid fines or even demolition orders. Before you finalize, confirm with the municipality what can and cannot be built.
Relying Too Heavily on Informal Agreements
Handshakes and friendly words can be common in Costa Rica, but property deals must be formalized. Some buyers agree to terms informally or accept vague promises. Later, they find that the property boundaries are not what they expected, or easements limit access. Written contracts prepared by a licensed attorney protect both parties. They also help record the transaction properly at the National Registry. Even if you trust the seller completely, never skip the formal steps.
Choosing Location Without Considering Lifestyle
Costa Rica offers diverse regions, from bustling San José to remote beach towns. Buyers often choose based on a vacation experience without considering everyday life. Living in a tourist hub may be lively but crowded. Rural areas may provide tranquility, but fewer services and schools. Think about your lifestyle needs, not only the scenery. Consider healthcare access, road conditions, internet reliability, and community atmosphere. The country’s unique variety means each region has strengths and drawbacks. Take time to match the location with your long-term goals.
Miscalculating the Total Cost of Ownership
A property might seem affordable at the purchase price, yet ownership involves ongoing expenses. Annual property taxes in Costa Rica are low compared to many countries, but luxury tax, insurance, maintenance, and management fees can add up. Buyers sometimes forget to include these costs in their calculations. If the goal is rental income, additional expenses such as cleaning, utilities, and marketing must be considered. Carefully outline every cost before buying. That way, you can ensure the property remains financially viable.
Rushing the Process
Excitement makes many people want to close quickly. But moving too fast can expose you to unnecessary risk. Sellers may pressure you with statements about high demand. Agents may say a deal will disappear if you hesitate. Resist the urge. Allow your lawyer, inspector, and surveyor to complete their work. Review every document in detail. Give utmost attention to each step. A little patience today will prevent major problems tomorrow.
Buying property in Costa Rica can be a rewarding experience. The country is welcoming, the environment is beautiful, and the investment potential is strong. Still, avoiding these common mistakes is essential. With clear legal checks, professional guidance, and realistic planning, the process becomes safer and smoother. When handled carefully, your purchase will not only hold its value but also bring lasting enjoyment.