9 costly mistakes people make buying in Costa Rica
Costa Rica is a safe place to buy, if you avoid a short list of traps. Here they are, with the fix for each.
The pattern behind every one
Almost every Costa Rica horror story traces back to one thing: acting on trust instead of records. The land is fine. The process is fine. What goes wrong is a buyer who moved money, or skipped a check, before the official data confirmed what a seller said. Fix that habit and the rest of this list takes care of itself.
1, Wiring money outside escrow
Sending funds straight to a seller (or an unregulated "helper") is how deposits disappear.
The fix: only ever move money through a SUGEF-registered escrow agent. Funds release to the seller when the transfer is signed and filed, not before.
2, Skipping due diligence under time pressure
"Another buyer is interested, close this week" is the oldest push in real estate. The due-diligence window exists precisely so you don't have to decide blind.
The fix: keep a written due-diligence period with contingencies, and use the checklist. A genuine deal survives a two-week verification; only a bad one can't.
3, Assuming "beachfront" means titled ownership
Much beachfront is maritime-zone concession, not fee-simple title, with foreign-participation caps and municipal dependencies.
The fix: confirm whether the parcel touches the 200 m maritime zone before you fall in love. Folio's free check flags ZMT contact instantly.
4, Trusting only the seller's notary
One notary can authorise the deed, but the seller's notary works the seller's timeline and interests.
The fix: retain independent counsel for your due diligence and to review the deed before you sign. Run a conflict-free process.
5, Buying land with no legal water
A gorgeous lot with no water letter can be unbuildable. No availability letter from the ASADA/AyA can mean no building permit.
The fix: confirm a legal water source (utility letter or a registered, permitted well) before closing, especially on raw land.
6, Confusing lot size with buildable area
Setbacks, slope, easements and environmental limits can shrink what you can actually build to a fraction of the lot.
The fix: verify the plan regulador, setbacks and any SETENA constraints before you price the land as if it's all buildable.
7, Ignoring liens, back taxes and HOA debt
Unpaid municipal tax, condo fees or a registered hipoteca can follow the property to you.
The fix: pull the registry for encumbrances and get written confirmation that taxes and HOA are current to the closing date. This is a core due-diligence item.
8, Not checking who really owns it
The person showing you the property is not always the registered owner, and a mismatched or expired power of attorney can void a sale.
The fix: match the seller to the registered owner of the finca (or verify a valid, current POA) before you sign anything.
9, Believing a return is guaranteed
No one can promise appreciation or rental income as fact, and anyone who does is selling, not advising.
The fix: treat projections as projections. Buy on verified fundamentals, clean title, real access, water, allowed use, not on a pitch.
Folio reads the official records (title, liens, boundaries, maritime zone, water, protected areas) and shows you what the listing left out. Free to start.
Frequently asked questions
What's the single most common mistake?
Skipping due diligence under pressure and wiring outside escrow. Verify clean registered title first, and never send funds directly to a seller.
Is beachfront property risky?
It's often maritime-zone concession, not title, with foreign-participation caps and municipal dependencies. Legitimate, but confirm titled vs concession before buying.
Can I actually lose my deposit?
Yes, if you wire outside escrow or waive contingencies. A SUGEF-registered escrow agent plus written due-diligence contingencies protect your deposit if a material problem appears.
Do these apply to buying through an agent?
Yes. A good agent helps you avoid them; they don't replace independent counsel and your own verification. Folio is used by agents and buyers alike to check properties fast.