Legal Due Diligence for Property in Costa Rica: A Checklist

Legal due diligence in Costa Rica is the process of confirming that a property is what it appears to be before you buy it, borrow against it, or lend on it. It checks who owns the property, what is registered against it, whether the boundaries match the survey plan, and whether anything could limit its use. Skipping it is one of the most expensive mistakes a buyer, borrower, or lender can make.

This checklist explains the main items. It is general information, not legal advice, and it does not replace a review by a qualified Costa Rican attorney.

1. Title and Ownership

Start with the National Registry (Registro Nacional), where titled real estate is recorded. A registry report shows the registered owner, the property number, its recorded area, and whether it is held by an individual or a company. If a company owns the property, confirm who can legally sign for it.

2. Liens, Mortgages, and Annotations

The same registry report shows mortgages, liens, and annotations such as pending legal matters. Any of these can affect a sale or a loan. For property-backed loans, GAP requires the lender to hold first-lien position, so existing liens must be paid off before or at closing. Learn more about first-lien position in Costa Rica.

3. The Survey Plan

A registered survey plan (plano catastrado) shows the property’s location, boundaries, and area. Compare it with the registry report and with what is on the ground. Differences in area, fences that do not follow the boundaries, or missing access can signal problems that need an attorney or a surveyor.

4. Property Taxes and Municipal Charges

Ask the municipality to confirm that property taxes and municipal charges are paid. Costa Rica’s Property Tax Law requires owners to declare their property’s value to the municipality at least every five years, and the annual property tax is charged on the registered value.

5. Zoning and Land Use

Ask the municipality for a land-use certificate (certificado de uso de suelo) to confirm what the zoning allows. This matters if you plan to build, subdivide, rent, or run a business on the property. Also check that existing construction has the required permits.

6. Water and Utilities

Confirm how the property receives water and whether service can be provided for what you plan to build. See our guide on why you need a water letter before buying property.

7. Access and Occupants

Confirm that the property has legal access and visit it in person. Check whether anyone is living on or using the land. Under Costa Rica’s Civil Code, simply tolerating someone’s use of a property does not give them a right of possession, but occupants and disputes can still delay a sale or a loan.

8. Coastal Property

Land near the ocean needs extra care. Under the Maritime Terrestrial Zone Law, a 200-meter strip along the coast forms the maritime terrestrial zone: the first 50 meters are public, and the next 150 meters are a restricted zone generally held under concessions rather than titled ownership. Concessions follow different rules from titled property, including limits for foreigners with less than five years of residence and for companies that are more than 50% foreign-owned.

Who Should Do Your Due Diligence

For due diligence in Costa Rica, use your own independent Costa Rican attorney, and a surveyor when boundaries are unclear. Lenders do their own review as well. For GAP loans, title information, lien details, survey plans, and tax records may be requested, and GAP determines the property value used for loan-to-value, with input and acceptance from the lender.

Frequently Asked Questions

What does legal due diligence include in Costa Rica?

It typically covers title, liens and annotations, the survey plan, taxes, zoning, water, access, occupants, and coastal land rules where they apply.

Where do I check a property’s title?

Titled real estate is recorded at the National Registry (Registro Nacional), which shows the owner and anything registered against the property.

Is a survey plan the same as a title?

No. The registry report records ownership and liens, while the survey plan (plano catastrado) shows location, boundaries, and area. Both should match.

Can I borrow against a property with an existing mortgage?

With GAP, yes, if the existing lien is paid off before or at closing so the new lender holds first-lien position.

Do I still need an attorney?

Yes. A checklist helps you ask the right questions, but a qualified Costa Rican attorney should review the documents.

This article is general information only and is not legal, financial, or tax advice. Every loan depends on property review, documentation, and lender approval.

WhatsApp us at +506 4001 6413 to get started.

Planning to borrow against a property? Review the property-backed loan requirements, start a loan request, or email info@gap.cr.

Article by Glenn Tellier (Founder of CRIE and Grupo Gap)