We are often approached by new clients who purchased property in Costa Rica with the assistance of other counsel and now seek our support to sell the property or undertake estate planning.
When we review the property, the company that may own it, its corporate books, compliance matters, and other aspects of the ownership structure, we often identify multiple issues that must be corrected before the property can be sold or otherwise transferred.
To these clients’ surprise, the representations made by their original counsel at the time of purchase were not entirely accurate or did not reflect the actual situation. In many cases, the arrangements fall short of the clients’ objectives, fail to protect their best interests, or lack the sound structure needed for a future sale or transfer.
In these situations, we recommend a thorough legal assessment of the property and, where applicable, the company that owns it. This review identifies the issues that need to be addressed so that sales or estate planning can proceed. Bringing the assets and their ownership structure into order can take time, causing delays and potentially jeopardizing time-sensitive transactions.
For these reasons, we strongly recommend an independent legal assessment as a best practice for holding real estate and corporate assets in Costa Rica, especially where the owner has concerns about the relationship with their original counsel.
The assessment should be conducted by a reputable law firm that was not involved in the acquisition. This is particularly important when the buyer did not engage their own Costa Rican attorney or law firm to review and approve the title and transfer. Significant conflicts of interest may exist, especially when the only attorney involved was the seller’s counsel or an attorney recommended by the realtor. Ideally, the assessment should be completed before any sale or other transfer, to ensure that the owner’s Costa Rican real estate assets are protected and rest on a sound legal foundation.