REAL ESTATE INVESTMENT IN COSTA RICA
Costa Rica ranks in fourth place at the world level as an ideal environment for foreign investment, because there are very few restrictions on foreigners owning land in Costa Rica, they enjoy the same rights as Costa Ricans and do not require any special conditions to purchase property within Costa Rica. An exception is the - "Terrestrial Maritime Zone".

GENERAL CONDITIONS FOR BUYING ORE RENTING REAL ESTATE IN COSTA RICA.
IDENTIFICATION DOCUMENT
Present before a notary public legal identification documents:- Cedula Identification card for Costa Ricans and Passport or Proof of Residency card for foreigners. In the case of corporations the company ID and the authorized legal representative holding a current (30days) Personeria Juridica.

OTHER DOCUMENTS.
MUNICIPAL CLEARANCE-from the corresponding municipality according to the location of the property:
a) That the owner has paid municipal and property taxes.
b) That the Buyer does not have any debts within that municipality.

PLAN OF SURVEY.
An updated Survey of the property.

PUBLIC REGISTRY.
Free of all liens and encumbrances.

POWER OF ATTORNEY.
If one of the parties is not present, he/she can give an authority to another so that he/she can be represented before the notary public. The special and general authorities are signed before a notary public or before a Costa Rican Consul, if it is outside of Costa Rica and it should be in the record book.
The "special authorities" are not registered in the Mercantile Registry, because they are granted for a specific use which expires when a certain condition is met. ie. the sale or purchase of property.

REGISTRATION OF PROPERTIES.
Ninety percent (99%) of the properties in Costa Rica are registered in the "Public Property Registry " these registrations are made by a notary public. The system is fully computerized and indexed with 80% of the properties identified by a title registration number known as the "Folio Real" and that can be searched from any place via the Internet: www.registronacional.go.cr, In this way one can be obtain a complete study of the property or "Registral Inform", indispensable today for any type of transactions: sales, mortgages, rents, liens. The registry report provides detailed information on a particular property including the name of the title holder, the boundary lines of the property, liens, annotations, declared value of the property and other recorded documents which affect title. The Public Registry can issue certificates of title or provide a registry report on a particular property. Some properties are still found registered in the tomos and we should be able to find them in the Registry by tomo, page, number of the property.

REGISTRATION OF FOLIO REAL.
The folio real is the "number of the property", it should be placed before the number of the province in which it is found (for example 1452-1 for the province San José,), at the end a hyphen identifies a sub registration which can be three zeros (001,002,003 etc) indicating the number of people with rights to the property.
- RIGHT OF WAY.
A right of way is the right of a party to pass over a property. These rights of way can be for air, water and much more. Nevertheless, it is important to note that when a property shows a right of way, it may not be valid any longer , which is shown as a "transferred right of way". The main property and all the sub divided lots will appear with the same note, but in reality it has no effect on them. It is prudent to have a professional review the property before making any buying decision.
- NATIONAL SURVEY.
Another important document we should get is the "Survey", which can be obtained in the same building as the "Public Registry", in the "National Survey". section. The Survey map will indicate the exact location of the boundaries of the property.
Notes:
It is possible that sometimes important differences can be found between the "Survey" and the "Registry Report ". This is because the property is recorded in the Registry by a notary and this represents true right of possession. With regards to the survey , an owner may make modifications to the property and forgets to update it in the registry thereby creating the difference.
1) NAME: Incorrect name, as a consequence of an owner not registering in his own name.
2) MEASUREMENTS: In general the most accurate measurements is the one on the survey map, since it is always more recent that the one of the Registry, but is important that it be updated.
(a) Deed
(b) New measurement of survey map
(c) Administrative correction by the input individual.
(d) Owner information.
3) PATHWAYS.
4) FOLIO REAL or REGISTRY DATA: Incorrect number of the folio real, tomo, number of property and site. Usually occurs when the survey was submitted before the segregation and the number appears on the main property.
5) LOCATION: Another province (almost never), district, etc; caused by human error and it is easy to correct , which should be done before transferring any property.

CORRECTION OF MISTAKES IN THE PUBLIC REGISTRY AND NATIONAL SURVEY
These mistakes can be made by:
1) Mistakes by the person who inputs the information in the system. To correct them it must be done by showing the original deed.
2) Notary mistakes, at the time of writing the deed in the record book. They can be corrected by changing the deed.
3) Mistakes in the survey map, corrected by having an updated survey completed by an authorized Topographer/Engineer.

REGULATIONS ABOUT LAND USE IN COSTA RICA.
In Costa Rica, there are some restrictions for land use, it's the same whether you are Costa Rican or foreign., it is for this reason that we recommend each property must be carefully researched., to determine whether the location, ground conditions, ecological problems, etc, are appropriate for the use we require. Advice from professionals on these subjects is a must, experts such as Engineers, Real Estate Brokers, and different Governmental Entities, depending on the location and use they are: MAG (Ministry of Agriculture and Cattle), INVU (National Institute of Housing and Development), Ministry of Health, Ministry of Energy and Environment, MIVAH (Ministry of Housing and Human Resources), AyA ( Water and Sewage Authority), MOPT (Ministry of Public Works and Transportation), (IDA)Institute of Farming Development, and the corresponding municipality.
Likewise, it is important to know if there are declared zones such as "reserve" (forestry, ecology, etc), which impose restrictions on the land use. For example there are water reserve zones where only 10% of the land can be used for construction or "Agricultural Vocation", where it is prohibited to construct buildings and yet others of the forestry reserve which limits cutting of trees.

MARITIME ZONING LAW.
Since the promulgation of the Maritime Zoning Law number 6043 and its reforms, of March 1977 properties that are located within this zone but were not registered in the Public Registry. The law allows the government to grant leases called Concessions for the occupation and use of this area for terms that range from five to twenty years.
For a better understanding of these restrictions, they are found in "THE LAW OF TERRESTRE MARITIME ZONE".
"The maritime zone encompasses two hundred meters of beach frontage which is owned by the Costa Rica government. The 200 meters regulated by the Maritime Law extend all over the Pacific and Atlantic coasts of the Republic and any of its nature, terrains, rocks that are exposed at low tide." (Article 9)
"The maritime zone is composed of two sections: The PUBLIC ZONE which is the first 50 meters of tideland and the areas that are left exposed during the low tide, the RESTRICTED ZONE is the remaining 150 meters inland ." (Article 10)
"In the case of properties properly registered in the Public Registry, that are located wholly or partially in the public zone , the use of the same will be allowed to conform with agreements from the corresponding municipality, the Costa Rican Institute of Tourism and the National Institute of Housing and Development" (Article 25)
"All plans of urban or tourist development which affect the maritime zone, should be approved by the Costa Rican Institute of Tourism, as well as all the official organizations that have the authority to revue these plans, according to the law. These authorities can intervene in any tourist activity and development in the Maritime Zone or access those persons or companies that can have any concessions. In the same way, these authorities can intervene when foreign entities are involved in tourist related enterprises whose capital for the development remains more than 50% Costa Rican ownership…" (Article 31)
"Only in the RESTRICTED ZONE can concessions be given when referring to the maritime zone, unless there are special dispositions of this Law…" (Article 39)
"The concessions will be for the use and enjoyment of the particular areas in the restricted zone, under the terms and conditions that this Law establishes…" (Article 41)
"It is prohibited to give or compromise, in any way or to transfer or sublet totally or partially, the concessions or the rights derived from them, without the express consent of the corresponding municipality and the Costa Rican Institute of Tourism or the Institute of Land and Colonization, depending on the case, the contracts or acts will lack authenticity those who violate this disposition…" (Article 45)
Concessions would not be granted to:
a) Foreigners who have not resided in the country for a minimum of 5 years;
b) Corporations with shareholders.
c) To companies that are domiciled outside the country.
d) To companies made up of only foreigners; and
e) Companies whose shares or investment capital, are made up of more than 50% by foreigners…" (Article 47)