As the saying goes “All good thing can come to an end”. The same can be said about your Costa Rica property. Selling your property is not a hard thing if you are properly prepared and ready in advance. Selling will be much easier if properly priced and marketed but there are items you need to know before hand to make the selling process a smooth and stress-free transaction for you.
True to the fact that Costa Rica real estate can be held in your personal name, a Costa Rica corporation, a trust or even a foreigner corporation or entity, however it is important to know what is need, since most properties are held either in personal names or a Costa Rica corporation.
Depending on how the offer was written and how in-depth of a due diligence the buyers’ legal team will perform or request, the items that follow may be needed for the selling process of you Costa Rica property. Whether the property is in your personal name or a Costa Rica corporation. It is highly recommended you utilize the service of your local Costa Rica “Notario” notary or attorney to assist you with the selling of your property and obtaining documents that will be required and needed.
1) Proof of legal water availability: whether from AYA (Instituto Costarricense de Acueductos y Alcantarillados), local municipality where the property is located, legally registered private well or from an ASADA (Asociación Administrativa del Acueducto) in other words a legally registered private water association.
2) Proof of electrical service along with the company providing service and the current contract number.
3) If the property is a house or a condo, Municipal building permits will be required to ensure it was legally built.
4) Poof of property taxes paid to date of closing from the local municipality where the property is located.
5) Proof of all utilities being paid to date of closing, as in water, electric, cable and telephone.
6) If your property is a home or a larger condominium, proof of the Solidarity Tax Assessment and if qualified for the tax, payments are up to date from 2009 to date of closing (Impuesto Solidario para el Fortalecimiento de Programas de Vivienda or roughly translated as the Luxury Home Tax).
7) If the property is in a registered Home Owners Association or a Legal Condominium Association, you may need to provide the rules and regulation of the development, last meeting minutes as well as the financial report of the development. All Special assessments as well as monthly maintenance fees will need to be up to date of closing.
8) A “Certificado Catastral” or certified plot plan/ survey of the property.
9) A “Literal de Inmuebles” or a certification of the property.
10) A copy of your valid non-expired passport.
If your Costa Rica property, whether a house, condo or raw land / lot is registered under the name of a Costa Rica corporation there are benefits that make selling the property easier. Some of them are but not limited to: A) Not being required to be present at closing. By having detailed special power of attorney (SPA) and an updated shareholders meeting; which can be done by proxy, logged in the corporation legal books reflecting the special power of attorney, then someone in Costa Rica can sign on your behalf at closing. B) Shares of the corporation can legally be transferred to a new buyer and again special power or attorney (SPA) will be needed for this as well.
If your Costa Rica property is under your personal name most likely you will be required to be present at the closing to sign all documents, which is not a bad thing to experience Costa Rica maybe one last time?
However, you can still do a special power of attorney that is signed in front of a registered Costa Rica “Notario” Notary. The least expensive way to do this is to have you attorney draft the special power of attorney and send it to the closest Costa Rica consulate near you. Once the SPA has been approved then an appointment date and time will be set for you to go to the consulate and sign the document.
So, in order to make selling your Costa Rica property a hassle-free experience, be prepared before an offer to purchase is presented.
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