A memorable sale of property in Santa Ana, Costa Rica

A memorable sale of property in Santa Ana, Costa Rica

By Ivo Henfling

To be a real estate agent in Costa Rica, you really need to love what you do. I DO enjoy what I do, every day. When I get up in the morning, I know something is going to happen today that will make it another memorable day in paradise. I sometimes think about those people who for 30 years, day in day out, do the same thing over and over again.  I never do the same thing ANY day in my life and that is fun. Let me give you an example.

During Easter week I was going through the testimonials I received from my past clients and I found the longest one I have ever received. It was from a happy seller, whose house in Salitral de Santa Ana I listed in 2007 and was probably the most memorable sale I ever made in my real estate career, the listing is still online.  When you look at the pictures of the home, you will see why and that it shows that to be a good real estate agent you have to be smart, inventive and excel at what you do, but the seller needs to help the real estate agent a bit. My seller did and it was a win win situation for everybody.

That’s why you should contact me if you are in the market to buy or sell Costa Rica real estate. Read in the testimonial from my seller John Pond why:
For more than 15 years I lived on a Costa Rica property which I had bought in an area called Salitral de Santa Ana. This place is about 5 kilometers south of the town of Santa Ana itself.

      

Because of personal reasons I had decided to sell my place and move to another Central American country. And, to this end, I attempted to sell my property myself for more than two years. I had used the internet to initiate the sale. After a numerous of individuals wanting “more information” or “new and different photos”, and the troublesome stories of the many, I lost my patience to frustration. At one point, I had used my Architect to do the photography part so the pictures would be more professional in nature. Everything I tried was of no success.

         

After this relative long period of “trying to sell” this Santa Ana real estate myself, a very good friend of mine asked me to try Mr. Ivo Henfling of GoDutch Realty. This person had sold property before through Ivo and he had presently a home listed with GoDutch Realty. I had previously “bad luck” using realty companies, but I was “getting no-where fast” selling my place on my own. So, I phoned Ivo’s company for a meeting with him.

 

          
Ivo Henfling immediately offered me suggestions on how it would be best to quickly close a deal. He impressed me so much that I agreed to let him act as my agent in this transaction.
Ivo had a multitude of clients and he would always telephone me first stating the ETA of his showing. This, along with the number of personas accompanying him, would be the lead subject as to the reason for bringing these individuals for a viewing in the first place. To me, this was very comforting and impressive.

   

In a very short while a 100% cash deal was made by Ivo. At the closing, he handled all the details at his office so the transaction went smooth and trouble free. Due to his efficient handling of the whole matter I was able to depart ahead of my original plans and to do so knowing that all was handled efficiently and correctly.

I would recommend Ivo Henfling and the GoDutch team to anyone wanting a very honest appraisal and a prompt sale of their Costa Rica real estate holding.
John Pond

A memorable sale of property in Santa Ana, Costa Rica

How to check Costa Rica property title yourself

How to check Costa Rica property title yourself

by Ivo Henfling

GoDutch Realty’s real estate agents all check title before listing a Costa Rica property for sale but we still like to share our knowledge with buyers as well as sellers of Costa Rica real estate. Many of you do not speak Spanish and it is not too easy to know where to get started on a website you are not (yet) familiar with.
Anyone who owns property in Costa Rica should check at least once a month if his/her property is legally in good shape or not. It takes only 10 minutes of your precious time. Put it on your agenda, so you won't forget and read this blog so you can learn how to pull a title search online.
Costa Rica property can be purchased in one person’s name, jointly, or in the name of a corporation or Sociedad Anonima. It is very common in Costa Rica for individuals to put property in the name of a corporation in which they own all the shares, although since 2012 you have to pay corporation taxes if you own a corporation.
You should discuss this asset protection with your tax accountant and real estate attorney so that you will be informed of the tax implications and other issues before you purchase Costa Rica real estate or make an investment.

Real Property

Costa Rican law requires that all documents relating to an interest and/or title to real property be registered in the property section of the National Registry (Article 460 of the Civil Code). Most Costa Rica real estate has a titled registration number known as the Folio Real, and the property records database can be searched with this number, by name index or ID number. Properties located in the Maritime Zone function differently. When you go to the National Registry website, you’ll find what is in the image below. Click on where the red arrow shows.

That will take you to the next screen, where you click on “Bienes Inmuebles” which means real estate.

 

That will take you to the next screen where you need to click on what you want to do next

Here you have several options, but you will be mainly interested in the following ways of doing your title search:

1. By Property number or concession - Por Número de Finca o Concesión
2. By Personal name or Corporate name - Por Nombre Físico o Nombre Jurídico
3. By Identification number - Por Número de Identificación

The registry report (informe registral) provides detailed information on the property, I’ll show you as an example my condo in Sonesta One Jaco and detail on the image what each part of the report means.

Title information

I have deleted some of the numbers, for obvious reasons. The report gives you the title number, the location, the name of the owner (individual or corporate), boundary lines, tax appraisal, liens, mortgages, recorded easements, and other recorded instruments that would affect title. Since Costa Rica follows the doctrine of first in time, first in right, recorded instruments regarding land for sale presented to the National Registry are given priority according to the date and time in which they are recorded.

Title Insurance

For purpose of the transfer of Costa Rica real estate this means that any mortgages or liens which are not recorded at the time that title is transferred are invalid. Since the certificate of title issued by the National Registry is prima facie evidence of the condition of title on the date issued, any instrument not recorded at the time the certificate is issued is invalid. This eliminates the need for title insurance since any instrument omitted from the report is deemed invalid, to my opinion.
In this case, this condo in Jaco has a suit pending or lis pendens. The term “lis pendens” is Latin for “suit pending.” A lis pendens is filed against a real property to indicate that the title of property is in question, or that some sort of lawsuit involving the property could occur in the near future. When someone files such a notice, it serves as a public notification that the property is involved in a lawsuit.

Liens and incumbrances

Obviously, every situation differs and in some cases a review of the National Registry record will not be enough to uncover all encumbrances. That is why it is important that the buyer have her or his own attorney conduct an independent title search and investigation rather than rely on the seller's attorney. A good and responsible closing attorney will pull a title search on the day of the real estate closing. A GoDutch Realty agent is ahead of the game and will pull the title search when he/she lists the property.
Some buyers feel more comfortable purchasing title insurance, in which case the title company will take care of the search and insure the title or not. In case you are looking to take title insurance, many of the attorneys we recommend on our website are star attorneys for a title company, so you can do your Costa Rica property purchase and everything else all in one office with your trusted closing attorney.

How to check Costa Rica property title yourself

Do half the people who move to Costa Rica move back again?

By Ivo Henfling

Adventure, sunshine, lower cost of living, being happy and a better lifestyle, to mention a few, are reasons that make us take the decision to move to Costa Rica or to any other country.

It is a great decision or a horrible one, there is nothing in between, no matter if you move to the city or to the beaches. If it is a happy story or a horror story does not only depend on being committed or not, there are a lot of big and small details involved.