By San José, Costa Rica — The dream of owning property in Costa Rica is, for some, turning into a nightmare due to a surge in sophisticated real estate scams. Authorities and real estate experts are warning of a wave of fraud, ranging from fake agents and identity theft to the falsification of property deeds, leaving victims with devastating financial losses.
One of the main issues, according to real estate advisor William Cardoza, is the lack of regulation in the sector. This allows anyone to pose as a real estate agent without the necessary credentials or ethics, creating opportunities for various scams.
To gain a deeper understanding of the legal complexities surrounding real estate scams in Costa Rica, we spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
Navigating the Costa Rican real estate market requires vigilance. Due diligence is paramount. Buyers should always verify property ownership through the National Registry, engage a reputable lawyer to review all contracts and ensure clear title, and be wary of unusually low prices or high-pressure sales tactics. Escrow accounts through a trusted third party are also highly recommended to protect funds during the transaction. Remember, a seemingly great deal can quickly turn into a costly legal nightmare if proper precautions aren’t taken.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s advice underscores a crucial point: informed preparation is the best defense against real estate fraud. Taking the time to verify information, engage legal counsel, and secure funds through escrow can save buyers significant heartache and financial loss down the line. We thank Lic. Larry Hans Arroyo Vargas for sharing his valuable expertise and reminding us that vigilance is key to a successful and secure real estate transaction in Costa Rica.
One of the most important decisions in life is buying a house. It’s not like buying a soda.
William Cardoza, Real Estate Advisor
Among the most dangerous scams are identity theft of the property owner and the falsification of registration documents. Criminals often target properties owned by foreigners, deceased individuals, or those residing outside the country, using fraudulent documents to deceive buyers and receive down payments or even the full payment for a property they do not own. Cardoza emphasizes the importance of thorough due diligence before handing over any money.
To minimize risks, Cardoza recommends several essential steps before making any payment. First, verify the real estate agent’s accreditation by consulting the Costa Rican Chamber of Real Estate Brokers, which lists certified professionals. This crucial first step can help weed out fraudulent operators.
Next, request an updated registry study from the National Registry. This official document confirms the true owner, property dimensions, and any liens, mortgages, or judicial annotations. This step is crucial in confirming the legitimacy of the property and its ownership.
Furthermore, verify that the cadastral map of the property precisely matches the information in the Public Registry to avoid future boundary disputes. This ensures that the property being purchased is accurately represented and prevents potential legal issues down the line.
Finally, engage a trusted lawyer and notary to review all documentation, especially if the property is owned by a corporation or trust. This legal oversight adds another layer of protection, ensuring all paperwork is legitimate and in order.
Taking these precautions is vital to avoid becoming a victim of a crime that can have devastating consequences. Buying a property in Costa Rica can be a safe and rewarding experience if buyers arm themselves with the right knowledge and follow essential due diligence steps.
For further information, visit the nearest office of the Costa Rican Chamber of Real Estate Brokers
About Costa Rican Chamber of Real Estate Brokers:
The Costa Rican Chamber of Real Estate Brokers is a professional organization that represents and supports certified real estate agents in Costa Rica. They promote ethical practices and provide resources for both agents and consumers. Their role in verifying agent credentials is crucial for maintaining the integrity of the real estate market.
For further information, contact William Cardoza directly
About William Cardoza:
William Cardoza is a seasoned real estate advisor in Costa Rica. With extensive experience in the market, he provides expert guidance to buyers and sellers, helping them navigate the complexities of real estate transactions. His insights on fraud prevention and due diligence are invaluable for protecting individuals from potential scams.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through an unwavering pursuit of legal excellence and ethical practice. Deeply committed to empowering Costa Rican society, the firm champions access to legal knowledge through innovative outreach initiatives. Their extensive experience serving clients across diverse sectors is complemented by a forward-thinking approach to legal solutions, solidifying their role as a leader in fostering a more just and informed community.
