In Costa Rica, the buy-sell contract is an important part where the seller transfers ownership of a property to another (buyer) in exchange for an agreed upon price. This process is common in the exchange of real estate and is part of the legal formalities.
In this article, you will discover some of the characteristics related to the purchase and sale documents in Costa Rica, as well as where you can request this document.
What is a Buy-Sell Agreement?
The Buy-Sell is a document in which the transfer of a property is established under the agreement of a payment. This type of contract can be made orally or in writing; however, it is advisable to make it in writing and with the help of a lawyer.
In this type of documents it must be explicit, points such as the consent, where a clear and voluntary agreement of the parties is clarified. The object for which this contract is made; the reason and the form (although in Costa Rica the verbal contract is legal, it is recommended to formalize a written part to avoid misunderstandings).
Steps to make a Buy-Sell in Costa Rica
- 1
The agreement between the two sides: where the price, payment terms and other conditions are defined. This step can be preceded by preliminary agreements, such as a promise to sell.
- 2
Documentation required: A public deed is required, which must be formalized before a notary. A certificate from the National Registry verifying that the property is free of encumbrances and additional permits such as environmental, zoning, etc.
- 3
A Registry and Legal Study: conducted by a lawyer or notary public to verify that the documents and legal status are in order.
- 4
The payment of taxes and fees: including 1.5% of the value of the property, which is the transfer tax, plus notary fees.
- 5
Signing and Registration: The deed must be signed before a notary and then registered at the National Registry to guarantee the transfer of ownership.
Key Tips
- Work with professionals: An attorney and notary will ensure that the process is transparent and legal.
- Inspect the property: Verify the physical and legal condition of the property before making a commitment.
- You can use financing: If you use a mortgage loan, check with the bank about the requirements.
Buy-Sell Contract is a major investment that requires attention to legal and logistical details. By following these steps and with the right support, you will be able to complete the process with confidence and peace of mind. At Nativu, our real estate advisors will accompany you throughout the process of finding and buying your new property, so do not hesitate to contact them.
