Buying Property In Costa Rica...Continued

After several months of looking at properties that made me want to swoon because of the views I continued to find problems with availability of water, electric or price. I had actually looked around for about 6 months before this just seeing what might be out there, but really just dreaming. I had my area pinned down to where I absolutely wanted to be, but was having a hard time. Then one day I took my friend, George Lundquest, and my architect, Laura, to look at a property. When it was determined it was not going to work George mentioned a property in Galavista in Grifo Alto. I had friends that all lived there, which was why I was looking in the area in the first place, but never imagined I could afford a lot up there. The developer was wanting to sell it to get money to do some improvements to the area. I stepped foot on the lot, looked back at George, and asked him again how much the lot was and just simply said, "SOLD!"

Believe me when I say I bought this lot on faith that it really did have the view George and Laura told me it had. It was overcast that day and every day I went up there until I purchased it. They told me it had a lovely view of the Bay of Nacoya and the mountains on the three sides of the lot. I could see the mountains, which I was thrilled about, but just had my fingers crossed I'd have a peek of the bay. Mind you, I took George's word since I met him when I was 17 years old. He worked for my father at Haggar Slacks Company, and they remain friends to this day.

I actually still have not seen the view in person. They needed to finish the cement road going to my lot, and I just had not been going up there because of everything else I needed to do like actually purchase it, find a builder, work with my architect on the style and layout I wanted for my home, etc. Then one day my friend, Kristi, who lives right down the street from my lot walked down and took this picture of my view. It was still a little cloudy, but wowzers! The bright shiny part just above the mountain all the way to the horizon is the bay.

Normally, in Costa Rica, the seller pays for the contract. But in this case, he gave me a much reduced price, I was to handle the extra costs. My attorney, Gerardo Madrigal Acuna, drew up the contract in the name of my new corporation. And yes, I had to wait several weeks for my corporation to be registered before we could do the contract. From there it was easy sailing. We got the contract, all the legal descriptions and papers from the county, the Uso de Suelo, and my money cleared the transfer into my Costa Rica bank account with no problems. That alone was a miracle. We met the seller at the bank in San Jose and closed the deal.

From that point it has not been so easy. Everything is done on Tico time. Not a slam to Tico time. Things are just so laid back in the country, and tomorrow usually means yes, some day.

I will continue the trials and tribulations on the new money transfer laws and other fun things in my next blog. It's really not all bad. Things always work out in the end. It's just getting there sometimes.

Pura Vida!

Buying Property In Costa Rica

After living in the United States and knowing how to buy and sell property there who would have thought just a few countries south it could be so different. The only thing in common would be what pleases your eyes as the buyer, and don't get too pleased too fast!

I sold my darling Victorian home in Greenville, Texas in February. I came back to Costa Rica with money burning a hole in my pocket excited to purchase either an existing home or land. When I moved here I had a vision of exactly what I wanted. I wanted at least an acre with plenty of trees for privacy, maybe some water and a majestic view. After looking at all kinds of properties I had to come back down to earth and face the facts. What I wanted and what I could afford did not match up.

Next I started having friends tell me horror stories of people buying property here without doing their due diligence. I did not even imagine you needed due diligence past being offered the property and paying for it. That was actually when I first moved here. I quickly learned not to do anything here without the advice of friends and a local attorney.

In Costa Rica very few properties are listed on the few websites for the area. Each of the 3-4 sites would have not more than 8-10 properties and the same properties on each of the sites. The thing I found the most helpful were the Ticos I have met and become friends with. It's like small town USA in the 40s and 50s. The neighbors know where the properties are that are for sale. Not to mention, I went with my friend, Luis, and he just started knocking on doors around where I wanted to look and started asking. Without his Spanish I could have never done that.

I was finally locating some properties I was interested in, and it was time to get my corporation. In this country it is recommended that you put your home in a corporation you own rather than in your personal name. It makes it easier for inheritance, and if for some reason you get sued they cannot go after a corporation. I hired, Gerardo Madrigal Acuna, as my attorney. He was wonderful. He speaks Spanish, but his wife, Yorleny, can speak English. She was present for all meetings, so everything was made clear. The type of corporation I decided on is called a Sociedad Civil Corporation. It is for one piece of property and is not taxable. There are other types of corporations, but those are larger to enable you to add a business or other properties. This was far more than I needed.

The first thing I learned before purchasing a property was to get what is called an Uso de Suelo. This legal document tells you exactly who owns the property and if you will be allowed to build a home on it. You would think if it said you can build a home on it then you would have electricity and water. Not true. This is not the city or the United States. You have to check with the company or community (Asada) that supplies the water and find out if they will allow you to have any. Not to mention, Puriscal and Barbacoas are not allowing any new builds that require water because the demand is too much for the available supply.

I found a beautiful piece of property. The views were beyond majestic! When I checked with the Asada I found out that the nearest water to me was the last house before the many pastures going up hill from it. In order to get water from that distance the asada would have to supply a new pump to get it up the hill. The Asada did not have the money. I could pay for one myself if I wanted to. Then because it was so uphill once the pump got it there the flow would be very weak going into the house. That would call for another pump. Due diligence!

ICE (pronounced e-say) controls all the electricity in Costa Rica. I have friends that started their house over two years ago. It has been finished for 8 months. They still do not have the electric poles to their property. The moral of this lesson and others I heard of was do not purchase property unless the electricity is already there or on the street next door!

The knowledge of water supply and electricity narrowed down my choice and areas I would continue to look at.

Next blog I will continue my journey with you....

VIEW FROM THE PROPERTY I COULD NOT GET THE WATER TO

Pura Vida