Know Your ABCs About Condominium Property In Costa Rica

A condominium is a type of real estate where individual units within a larger property are owned privately, while common areas and facilities are shared among the unit owners.

Condominiums in Costa Rica can be either horizontal or vertical. Horizontal condominiums typically involve individual houses or townhouses, while vertical condominiums are composed of apartment buildings.

Costa Rica has a law that regulates property in condominiums, which is the applicable legal framework when the owner wants to transform their property into this regime, as well as its operations. The internal by-laws of a condominium cannot challenge or contradict this law. This law will fill any legal void within the internal by-laws of a condominium.

All properties that are within a condominium regime will have:

• By-laws: Condominiums will have specific bylaws that govern the internal affairs of the condominium; they outline rules and regulations for the use of common areas, decision-making processes, maintenance responsibilities, and other relevant matters.
  Reviewing the by-laws before purchasing is key to ensuring that they do not create a mandatory limitation that you are not willing to comply with or affect you in any way. For example, dogs are not allowed in the Condominium. As a dog lover, I would never buy in a condominium with this restriction.
• HOA manager: All condominiums need to have an HOA manager. HOA managers take care of the maintenance and oversight of condominium properties. HOA managers play a crucial role in ensuring the smooth operation of the condominium and handling various administrative and maintenance tasks. They take care of the condominium’s communication, financial management, maintenance and repair, and rules enforcement, among others.
• HOA fees: Owners of individual units within a condominium are usually required to pay monthly or annual fees to cover the costs of maintaining common areas, security, and other shared services.
• HOA meetings: Per law, a condominium has to hold at least one HOA meeting per year. The summoning process must follow the condominium’s by-laws and the law. An agenda will be sent to owners in advance and outline topics to discuss, such as financial reports, maintenance updates, rule enforcement, and community concerns.

Beware that in Costa Rica, foreigners have the same property ownership rights as Costa Ricans. You can own a property inside a condominium, which can be owned by individuals or corporations.

The bylaws and the condominium law would also determine the number of votes in favor needed to amend the bylaws and impose new regulations.

Condominiums are a great option if you are interested in purchasing a Costa Rica. Before purchasing a condominium, it’s essential to conduct thorough due diligence. This includes reviewing the legal documents, the financial health of the condominium association, and any ongoing legal issues

Also, checking the condominium’s budget is key to ensuring that the HOA fees cover the condominium maintenance and operation and foresee if an extraordinary assessment is or will be in place.

If you have any further questions about Condominium in Costa Rica, feel free to contact me at sam@quatro.legal

Disclaimer: The information provided in this blog post is for general informational purposes only and is not intended to constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change. For the most accurate and up-to-date information, please contact our office directly. Some images may be AI generated.