By San José, Costa Rica — The dream of homeownership in Costa Rica often feels out of reach for many families. However, Banco Popular has presented a potential solution with three foreclosed properties in Desamparados, San José, offering significant discounts of up to 45% off their original value.
These properties, starting at ₡18 million, are part of a larger batch of foreclosed real estate being offered by the bank as a more affordable pathway to homeownership. However, potential buyers should be aware that not all properties qualify for full financing and some require substantial repairs.
To gain a deeper understanding of the legal landscape surrounding Costa Rican real estate, we spoke with Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica.
Foreigners often assume Costa Rican property law mirrors their home country’s. This can lead to costly misunderstandings. Due diligence is crucial. Engage a qualified lawyer specializing in real estate to navigate the complexities of property ownership, including easements, concessions, and the maritime zone. Understanding these nuances is vital for a secure investment.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
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Lic. Arroyo Vargas’s emphasis on due diligence resonates deeply. Navigating the intricacies of Costa Rican property law requires expert guidance, and overlooking these details can indeed jeopardize an investment. A proactive approach, with the support of a specialized legal professional, is essential for a secure and successful property purchase in Costa Rica. We thank Lic. Larry Hans Arroyo Vargas for his invaluable contribution to this discussion.
One unique opportunity is located in San Rafael Abajo, featuring a plot of land with eight small houses. Priced at ₡38 million, the property is in poor condition and has legal encumbrances. Each unit varies in layout, with kitchens, living rooms, bathrooms, and one to three bedrooms. Due to the need for municipal permits and a complete electrical system overhaul, Banco Popular requires full cash payment or additional collateral covering 100% of the price.
In Patarrá, Banco Popular is offering a two-story, five-bedroom house for ₡18 million. However, significant issues exist, including a second floor that doesn’t comply with current seismic code and a portion of the structure encroaching on the right-of-way. Consequently, purchase is limited to cash or full collateral. Despite these drawbacks, it represents the most affordable option in this batch of foreclosures.
The third property, situated in San Miguel de Desamparados, is the largest of the three. This main house boasts two stories, six bedrooms, three bathrooms, a kitchen, dining room, and living room, plus a secondary structure with three bedrooms. The foreclosure price is ₡51 million, with financing available only for the land value. The building itself must be paid for in cash or with additional collateral. According to the bank, the property needs repairs, municipal permits, and is currently uninsurable.
Real estate experts caution that while the low initial cost of foreclosures can be tempting, buyers must factor in additional expenses for paperwork, repairs, and legal regularization. Banco Popular advises interested parties to carefully review the specific conditions of each property and ensure they have the budget to cover necessary improvements.
This batch of foreclosed properties presents a chance for many families to access land or a home in San José at prices significantly below market value, provided they are prepared to invest in the necessary renovations and legal processes.
These opportunities highlight the potential of foreclosures to address affordable housing challenges, while simultaneously underscoring the importance of thorough due diligence and financial planning before committing to such purchases.
For further information, visit bancopopular.fi.cr
About Banco Popular:
Banco Popular y de Desarrollo Comunal is a Costa Rican state-owned commercial bank committed to promoting social and economic development. They offer a wide range of financial services, including mortgages, loans, and insurance. Their foreclosure offerings provide opportunities for individuals to acquire property at lower prices, contributing to accessible housing solutions. However, transparency about required repairs and legal complexities is crucial for prospective buyers.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence is interwoven with a deep commitment to societal advancement. Driven by unwavering integrity, the firm champions innovative legal solutions for a diverse clientele while actively empowering communities through accessible legal education. Their pursuit of knowledge dissemination reflects a profound belief in fostering a just and informed society, one empowered to navigate the legal landscape with confidence and clarity.
