Costa Rica has no equivalent of title insurance. Due diligence is the buyer's only protection, and a clean registry and property report is not by itself proof that a property is clean. For example, a squatter's possession does not appear in the Registro Nacional until a court judgment is registered. Municipal tax debt, lack of existence of building permits, structural deficiencies with a construction are not part of title searches. Labor or tax lawsuits require additional studies. Registry verification, reviews at other agencies and physical site inspections are complementary, and neither replaces the other.
Below is what due diligence actually finds, and what each finding costs to resolve.
What due diligence turns up
| Finding | What it means | Resolvable before closing? |
| Unresolved mortgage | A prior owner used the property as loan collateral | Yes |
| Anotación | A pending legal action or dispute flagged in the registry | Usually, depending on the action |
| Easement | A registered right of passage or utility access that binds the property regardless of who owns it | Not removable, but must be known and priced in |
| Survey discrepancy | The registered area does not match physical reality | Yes, with a new survey |
| Missing heirs | Property inherited without proper legal transfer, breaking the chain of title | Yes, but slowly |
| Third-party possession | Someone is occupying the land | Depends entirely on how long and how openly |
| Municipal tax debt | Property has not paid property taxes | Yes |
| Municipal tax declaration | Property has not been declared within the legal 5-year period | Yes |
| Lack of construction permits | Property construction does not have permits or existing permits do not reflect all the construction | Yes, but may delay closing or require a holdback |
| Luxury Tax | Properties with a construction over the 143,000,000 colones are subject to luxury tax. This amount is updated on a yearly basis. | Yes, but may require an appraisal |
| Utilities availability | Confirming the property has legal water, electricity and internet accessibility | Yes |
| Structural or aesthetic deficiencies | Property is operational and delivered in good working order | Yes, but requires inspection |
| Concession title and rights | Concession land is not fee-simple title. Title does exist but it belongs to the State. | Yes |
Any of these can be resolved. It is advisable for all of them to be resolved before you close, not after. After closing they become your problem, and there is no insurer standing behind you. If you are accepting the risk of them being resolved after closing, your legal counsel must negotiate safeguards such as holdbacks, credits, price reductions and/or representations and warranties built into the closing documents.
The registry blind spot
A clean title is not equivalent to a safe investment. A property purchase requires extensive due diligence beyond a simple title search.
A possession claim does not show up in the Registro Nacional until a court judgment about it has been registered. A registry report can therefore come back perfectly clean on a parcel where someone has been living, farming, or building for years.
The exposure is not evenly distributed. A one-hectare lot inside a gated community with an active homeowners association is easy to monitor. A fifty-hectare parcel in a remote watershed is not.
The practical consequence: anyone buying rural, large, or unmonitored land who has not walked the boundaries, or sent someone to walk them, has not completed due diligence — regardless of what the registry report says.
The survey and boundary problem
Many Costa Rican properties have no registered survey plan, or an outdated one. That is the origin of most boundary disputes, and of buyers discovering that the parcel is smaller than advertised or encroaches on a neighbour.
The check is specific: the plano catastrado must match both the Registry description and the physical boundaries on the ground. Three things, not two. A survey that matches the registry but not the fence line is still a problem. A title and/or survey review must be complemented by a surveyor site inspection to confirm the area, property depiction, information validity, encroachments, overlaps, etc.
Are there any municipal and tax problems?
A title search does not confirm compliance of municipal obligations or taxation rules. Taxes are independent from title searches. Title searches only reflect tax issues when a collection case has been submitted to the Court system and attached to the title. Property tax, luxury tax and compliance with its respective filings require additional search at the Municipalidad and Ministerio de Hacienda as part of the due diligence process. You should not settle for a title search alone.
Concession is not ownership
The Maritime Zone runs 200 meters inland from the mean high-tide line under Law 6043. The first 50 meters is public domain and cannot be owned by anyone. The remaining 150 meters is concession land administered by the municipality together with the ICT.
Concession land is not fee-simple title. Buyers sometimes purchase concession property believing they are acquiring titled land, and it is one of the highest-risk misunderstandings in Costa Rican real estate.
Two rules follow. Foreigners, or companies with foreign-majority ownership, generally cannot hold more than 49% of a ZMT concession, with majority holding available to foreigners who have resided in the country at least five years and are legal residents. And informal occupation of concession land, while it does not create ownership, can create real complications at concession renewal or transfer.
Confirm in writing whether a specific property is titled or concession before making an offer. Outside the Maritime Zone the position is straightforward: foreign buyers hold direct freehold title in their own name, with no trust structure required.
What can a title search confirm on its own?
| Finding | Confirmed with title search only? |
| Unresolved mortgage | Yes |
| Anotación | Yes |
| Easement | Yes |
| Survey discrepancy | No |
| Missing heirs | No |
| Third-party possession | No |
| Municipal tax debt | No |
| Municipal tax declaration | No |
| Lack of construction permits | No |
| Luxury Tax | No |
| Utilities availability | No |
| Structural or aesthetic deficiencies | No |
| Concession title and rights | Yes |
What people forget to check
Legal road access. Rural jungle and mountain parcels may have no legal access at all. Physical access by an existing track is not the same as a registered right of way.
Water. Depending on location, a water concession or availability may be required from the environmental authorities, and the problem is most acute exactly where water is scarce or heavily regulated.
The seller's word. Relying on the seller's representation instead of verifying the registry is among the most common mistakes foreign buyers make.
The failure that causes the others
The single most common and most costly mistake is skipping or abbreviating due diligence, and it concentrates among cash buyers who want to close quickly. A standard due diligence period in Costa Rica runs about 30 days. Compressing it does not make the problems disappear; it moves them to the far side of the closing. You should be advised on due diligence depending on the transaction structure, type of property and be provided proper deliverables for you to make an informed decision.
What if something is found after closing?
Remedies exist and they are slow. A buyer can pursue civil or criminal complaints through the courts, but property disputes can take years and recovery is not guaranteed. Enforcement of a contract breach is possible but costly.
That is why the arithmetic favours the front end so heavily. Prevention is not merely better than litigation here; in many cases it is the only outcome available. Due diligence is the best investment you will make.
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Last updated: September 11, 2026. Written by Gonzalo Rojas Benavides, founding partner, Colegio de Abogados de Costa Rica No. 17310. E-mail: grb@quatro.legal
This page describes general risks in Costa Rican property transactions and is not legal advice. Every property is different. Have any specific transaction reviewed before committing funds.
Disclaimer: The information provided in this resource 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.
