- Posted June 6, 2014 by
Due Dilligence by Experts when Purchasing Coastal Real Estate.
Costa Rica (CR) has become a preferred real estate investment destination. There are plenty of exclusive developments to choose from and those are mostly located in the Pacific Coast of Guanacaste Province.
But even if CR is one of the -legally- safest countries in LATAM for land investors, it's not uncommon to find beachfront titled properties based on void or conflicted land titles.
That's right, even if "on paper" it looks like a clean title estate to a regular attorney or a title insurance company, the truth is that you're not safe from property fraud and its possible that in some cases, even the sellers are not aware of their own legal predicament.
In short, it doesn't matter how much you're investing, what's the project's size or who's the project's owner. You may be at risk!!
For instance, according to recent investment risk assessments elaborated by our firm, due to legal "mistakes" occured during land claims proceedings through the Costa Rican legislation between 1965-1977, many ocean front properties ended up with invalid titles.
Furthermore, the beachfront public area known as "zona marítima-terrestre" (656 feet wide from the coastline) as well as estuaries, mangroves and wetlands -with very few exceptions- can be claimed back and vindicated by Government authorities at any time (PGR).
That's why in such cases, you spare no expense and hire the best property law specialist you can find in the country.
Important Notice: Photo is for illustrative purposes only and unrelated to conflicted titles.
Source: Lic. Massimo Esquivel / ABC Specialized Legal Services.