The closing process for a real estate transaction in Costa Rica consists of several stages and involves various participants. Navigating each stage is easier with the guidance of an experienced Nativu advisor. Here is what you need to know about the closing process and how to prepare for it:

Agreement and Signing the Option to Purchase Contract:

In the first stage of a real estate closing, the buyer and seller sign an option to purchase agreement, establishing the terms and conditions of the transaction. This occurs after agreeing on a price between the parties.

In the first 7 to 10 business days after signing the offer, the documentation is sent to the escrow company, so that the initial deposit can be made, which is usually around 10% of the total agreed price. Or, payment is made to the owner, if the sale is not made through escrow.

If applicable, the buyer initiates the financing process separately.

Participants: Buyer, seller, and their respective real estate agents.

Due Diligence

Cierre bienes raíces- closing real estate

This process is carried out by an attorney and includes reviewing property titles, verifying boundaries, verifying liens, environmental studies, and ensuring that the property complies with all local regulations, among other things. The length of time the due diligence process takes will depend on the property and its characteristics, but it can take at least 4 weeks.

At this stage, an inspection of the property is done to see if any repairs need to be made.

Participants: Lawyers, surveyors, engineers, and other relevant professionals. The Nativu real estate advisor assists in this stage to facilitate client understanding.

Preparation for the Transfer:

In this next stage, the buyer should already have the necessary funds for the property payment. The lawyer agreed upon by the parties prepares the transfer deed, which includes all the details of the transaction and the parties involved.

Participants: Lawyers of the parties, real estate advisors, and the parties themselves.

Closing

Cierre bienes raíces- closing real estate

Both parties, together with a notary public, sign the transfer deed. This stage is carried out at the place and day agreed upon by the parties. Additionally, the buyer transfers the funds to the seller. If an escrow account is being used, the money is transferred from the escrow account. Once the deed is registered and payment is confirmed, possession of the property is delivered to the buyer.

If it is a share transfer plan, a trust or another type of legal figure, then the corresponding legal document will be prepared.

The notary is in charge of presenting the transfer deed in the National Registry so that the transfer of property is official.

Actors: Buyer, seller, and possibly an escrow company.

  • Agreement and Signing the Option to Purchase Contract:

    In the first stage of a real estate closing, the buyer and seller sign an option to purchase agreement, establishing the terms and conditions of the transaction. This occurs after agreeing on a price between the parties.

    In the first 7 to 10 business days after signing the offer, the documentation is sent to the escrow company, so that the initial deposit can be made, which is usually around 10% of the total agreed price. Or, payment is made to the owner, if the sale is not made through escrow.

    If applicable, the buyer initiates the financing process separately.

    Participants: Buyer, seller, and their respective real estate agents.

  • Due Diligence:

    This process is carried out by an attorney and includes reviewing property titles, verifying boundaries, verifying liens, environmental studies, and ensuring that the property complies with all local regulations, among other things. The length of time the due diligence process takes will depend on the property and its characteristics, but it can take at least 4 weeks.

    At this stage, an inspection of the property is done to see if any repairs need to be made.

    Participants: Lawyers, surveyors, engineers, and other relevant professionals. The Nativu real estate advisor assists in this stage to facilitate client understanding.

  • Preparation For The Transfer:

    In this next stage, the buyer should already have the necessary funds for the property payment. The lawyer agreed upon by the parties prepares the transfer deed, which includes all the details of the transaction and the parties involved.

    Participants: Lawyers of the parties, real estate advisors, and the parties themselves.

  • Closing:

    Both parties, together with a notary public, sign the transfer deed. This stage is carried out at the place and day agreed upon by the parties. Additionally, the buyer transfers the funds to the seller. If an escrow account is being used, the money is transferred from the escrow account. Once the deed is registered and payment is confirmed, possession of the property is delivered to the buyer.

    If it is a share transfer plan, a trust or another type of legal figure, then the corresponding legal document will be prepared.

    The notary is in charge of presenting the transfer deed in the National Registry so that the transfer of property is official.

    Actors: Buyer, seller, and possibly an escrow company.