Costa Rica Expertise LLC

By Garland M. Baker
Special to A.M. Costa Rica

Mortgages are becoming more and more available in the local market for expats who want to borrow money to buy property. There is a lot of money available for financing from local financial institutions. Private parties also have money to lend, but usually the interest rates are higher.

What most foreigners do not know about borrowing money in Costa Rica is how the foreclosure process works if one should default on a loan. Unscrupulous private lenders, attorneys and real estate people take advantage of the ignorance of homebuyers and, in some cases, use this knowledge to steal back properties they have sold.

On the other hand, deadbeat debtors can betray honest creditors with Costa Rican legal magic and procedural sleight-of-hand tricks.

Read more!

Yes, there is more paperwork

By Garland M. Baker
Special to A.M. Costa Rica

Real estate buyers need a good checklist to stay out of trouble when buying property in Costa Rica. However, most people forget about what needs to happen afterwards. Here is a checklist for after the closing.

First, the property needs to be transferred at the Registro Nacional. This is the notary’s job, but many do not rush to get it done. Many drag their feet for days, weeks and some even months. This is dangerous. An unscrupulous seller can sell a property to someone else, or even sell it repeatedly. Sure, that is illegal, but it happens, and the first buyer has hell to pay to get the property back. When property is purchased in Costa Rica, transferring it to the new owner immediately is a must.

Read more!

Crooks are getting smarter

By Garland M. Baker
Special to A.M. Costa Rica

A good detective can catch crooks in Costa Rica. The court now voids contracts, deeds, documents and deceptive acts more than before based on mere indications and clues of wrongdoing. Good thing too, because day by day the wicked get worse and believe that they can get away with anything here.

Even expats get caught up in stealing property and other assets that are not theirs because they believe they will not get caught by the law. It is true the judicial system is slow and inefficient at times, but it is equally true the country is striving to make it better.

Legal issues in Costa Rica involving theft and fraud usually form a triangle of players: the victim or plaintiff, the defendant and a third party. For example, in property fraud, the victim represents the true owner, the defendant is the crook, and the third party the person who bought land from the crook.

Read more!

By Garland M. Baker
Special to A.M. Costa Rica

There still are opportunities in real estate and real bargains for those people with patience and tenacity.

One possibility is the judicial auction.

The Boletín Judicial publishes information on properties going to auction in almost every edition. Buying real estate at auction is easy. One just needs to know the rules and have persistence. It is common to go to 10 or more auctions to find a deal.

Read more!

Technique opens up other sources for cash
By Garland M. Baker
Special to A.M. Costa Rica

Can a person or an institution lend money anywhere in the world in any currency and tie up assets here? The answer is yes, and to do so is not hard but a little technical.

Many foreigners would like to buy property in Costa Rica but do not have any credit in this country. Or they would prefer to work with their lender back home.

As the world shrinks, some lenders are looking for ways to lend money to real estate buyers in Costa Rica. But they do not know how to register a security interest here.

Read more!