Creation and Registration of Condominiums in Costa Rica

A condominium is a form of real property ownership in which each condo owner holds exclusive ownership over a specific unit within a larger property, such as an apartment, office, or lot (raw land), while simultaneously holding an undivided proportional ownership in the common elements and areas of the property shared with the other condo owners. These common elements may include areas and facilities such as hallways, roofs, gardens, parking areas, recreational facilities, and infrastructure intended for collective use. The condominium regime is established through a legal instrument (often referred to as the master deed) that defines the condominium units, identifies the common areas, allocates the ownership percentages in those common elements, establishes the type and use of the condominium units (housing, tourism, commercial, agricultural or industrial uses), and sets forth the condominium by-laws governing the administration, maintenance, and operation of the entire condominium.

Before reaching the stage in which a condominium is duly registered at the Costa Rican National Registry, several complex preliminary steps must be completed in order to legally proceed with such filing and registration. These steps require coordination with various public entities, and must comply with multiple legal, technical, and regulatory requirements applicable to real estate developments in Costa Rica.

The process typically begins with the preparation of a master plan for the condominium. At this stage, the involvement of an architect and a knowledgeable team of professionals in construction and development—such as surveyors and construction consultants—is essential for the success of the following steps of the project. The master plan illustrates the design and organization of the condominium, including the location of private units and common areas, internal roads, easements, green areas, and in some cases, if applicable, the possible creation of sub-condominiums within the development.

Once the master plan and blueprints have been prepared, they must be submitted in order to obtain the necessary permits and approvals from the relevant authorities. Depending on the characteristics and location of the project, the filings may involve institutions such as: (i) INVU (National Institute for Housing and Urbanism); (ii) the corresponding Municipality where the property is located; (iii) the Ministry of Health; (iv) SETENA, the environmental authority responsible for issuing environmental permits; and (v) other institutions that may also participate in the approval process, such as AYA (Costa Rican Institute for Water and Sewage), CFIA (Federated College of Engineers and Architects), CNFL or ICE (electricity and telecommunications authorities), and MOPT (Ministry of Public Works and Transportation). All these filings must comply with applicable municipal, zoning, building, infrastructure, and environmental regulations.

After the technical and regulatory approvals are obtained, a Public Notary must prepare the master deed for the creation of the condominium: a complex and highly detailed legal document that will be filed before the Costa Rican National Registry. This deed describes the property, the private units, the common areas, the ownership percentages allocated to each unit, and includes the condominium by-laws that will govern the administration, maintenance, and operation of the condominium and must be observed by all condo owners.

If the developer intends to sell condominium units in advance while the project is still under development — through what is commonly known as a “future sale scheme” — additional authorizations must be obtained from MEIC (Ministry of Economy, Industry and Commerce). In such cases, the developer must file the project before MEIC and obtain approval of the draft for the sale and purchase agreement that will be used with buyers, allowing the developer to legally offer and receive payments for units that have not yet been completed or still cannot be legally transferred to buyers.

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