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....
Pura Vida
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