Real Estate due diligences – Costa Rica

Here in Costa Rica, Real Estate properties all around the country are inscribed in just one place, the Public Registry. For years this government institution  has been improving the process and today we have a great registration system. While in the past a transfer deed was inscribed in a month or more , using manual and obsolete equipments, today it last no more than a week, basically because all the process is digital almost in a 100%.  today is possible to have access to all the information via Internet, getting information about mortgages, liens annotations, property owner etc.-

But,  remember, this technology is new or at least has been using in the Public Registry in the last 5 or 7 years, then, where and how are the old records?, and how important are to take in consideration in a purchase process.

Well, the history or the past of the properties are or may be in Books, with handwriting records,  books called “Tomos”, so if you need to know when the property was created, how many owners had, how the actual seller get the property, if had annotations for civil or criminal process, is needed to do a due diligence, reading many tomos, and be really careful in order to find all the paths.

Then, the point is be sure that all transfer deed made in the past were according with the law, the are some hints that can alert you about a fraud.

In case of the Mortgages, liens and annotations , be sure that all of them were cancelled by the lenders,  remember, all those records are handwriting!!

Limitations: when a property is register in the new system (digital), a brief explanation about its kind is made, and some times is really important find the root of this annotation. this is a good example how important to follow a good due diligence.

in your next purchase, be sure that a good due diligence is made, and ask for all the records!

Posted in English, real Estate.

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