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Costa Rica Real Estate Scams and How to Avoid Them

By the Folio team · Updated June 2026

Costa Rica Real Estate Scams and How to Avoid Them

The most common Costa Rica real estate scams involve forged titles, undisclosed maritime-zone concessions sold as fee-simple land, fake seller identities, and liens hidden inside the public registry. Every one of these scams is preventable. A certified registry report from the Registro Nacional pulled before you pay a single dollar is your first line of defense.

This guide is for general information only and does not constitute legal advice. Always engage a licensed Costa Rican attorney independent of the seller for any real estate transaction.

Why Costa Rica Attracts Scammers Targeting Foreign Buyers

Foreign buyers, particularly from the United States and Canada, often arrive with strong purchasing power, limited Spanish, and unfamiliarity with the Costa Rican property system. That combination creates real exposure. Costa Rica is a civil-law country. Property ownership is confirmed through the Registro Nacional, a public digital registry where every legitimate titled property carries a unique folio real number. If a seller cannot produce that number and a matching cadastral survey (plano catastrado), that is an immediate red flag.

The good news is that Costa Rica law gives foreigners the same right to own titled, fee-simple land as citizens. The system works when buyers use it correctly. Scams succeed when buyers skip the verification steps, trust verbal assurances, or rely on attorneys or notaries recommended by the seller rather than engaging their own independent counsel.

The Six Most Common Scams

1. Fake Fee-Simple Title on Maritime Zone Land

This is the single most expensive scam in the country and it appears most often in beach towns like Jaco, Tamarindo, Dominical, and Nosara. The Maritime Zone Law (Zona Maritima Terrestre, or ZMT) defines a 200-meter strip running inland from the mean high-tide line. The first 50 meters is public domain and legally cannot be owned by any person or company. The next 150 meters is concession land - leased from the local municipality and the Instituto Costarricense de Turismo (ICT), not held as private fee-simple title.

Sellers or developers occasionally present concession land as if it carries full ownership title. Some listings describe a concession as "titled beachfront," which is misleading at best and fraudulent at worst. A legitimate concession can be a valid asset, but it carries fundamentally different rights, renewal risks, and restrictions. A foreigner or a company with foreign majority ownership generally cannot hold more than 49 percent of a concession, which limits control significantly.

Before you make any offer on beachfront property, check a property in Tamarindo or whichever coastal town applies through a registry search that distinguishes titled folio real entries from concession records. The distinction is not always obvious in a listing sheet.

2. Forged or Altered Registry Documents

Paper printouts of registry certificates can be altered with basic software. Scammers have presented buyers with modified documents showing a clean title when the real registry entry carries a mortgage, a court annotation, or an ownership dispute. The only reliable document is a current certified literal (certificacion literal) pulled directly from the Registro Nacional. It shows the registered owner, legal boundaries, all recorded liens and mortgages, and any legal annotations. Pull one yourself, or have your attorney pull one. Never rely solely on a document the seller hands you.

3. Hidden Liens, Mortgages, and Annotations

A property may look clean on a summary printout and carry substantial debt inside the full registry record. Mortgage holders register their security interest against the folio real. Courts register precautionary annotations (anotaciones preventivas) when litigation is pending. Tax authorities can record liens through Ministerio de Hacienda for unpaid property taxes or transfer taxes. None of these appear on a simple description sheet. They appear on the certified literal, and they can survive a sale if not cleared before closing.

The cadastral survey check is equally important. The plano catastrado number on the survey must match the folio real in the registry. A mismatch between the two can indicate boundary manipulation or an unregistered subdivision. If you are buying in a high-activity market like the Central Pacific coast, check a property in Jaco using a tool that cross-references the registry record with cadastral data simultaneously.

4. Identity Fraud and Seller Impersonation

In several documented cases, a person posing as the property owner has signed a purchase option or sale agreement, collected a deposit, and disappeared. The real owner, living abroad or unaware the property was being sold, was never part of the transaction. Costa Rican notaries are required to verify cedula (national ID) or passport identity before certifying documents, but private option agreements often precede notarization and can be signed with fake identification.

Your protection is to verify the owner's identity independently through the registry before signing anything. The registered owner's name and identification number appear on the certified literal. Cross-reference that information with Poder Judicial records to check for any civil or criminal litigation tied to the property or the individual. Do this before a deposit changes hands.

5. Environmental and Regulatory Fraud

Some sellers present properties as build-ready when they carry environmental restrictions that prohibit construction. Costa Rica's environmental impact assessment body, SETENA, reviews and approves development projects. Properties near wetlands, national parks, rivers, or protected zones may be subject to restrictions that make the land unbuildable for the buyer's intended purpose, regardless of what a seller claims verbally or in a listing. A SETENA viability check and a review of any existing environmental permits is a required part of legitimate due diligence, not an optional extra.

6. Deposit Scams and Fake Developers

Pre-construction projects can carry significant risk when the developer lacks financing, permits, or a genuine intent to build. Buyers have paid substantial deposits on projects that were never built, by developers who had no registered entity, no construction permits, and no environmental clearances. Verify that a developer holds a valid corporate registration through the Registro Nacional, confirm that construction permits exist through the relevant municipality, and check SETENA records for environmental approvals before committing any funds to a pre-construction purchase.

Your Due-Diligence Checklist Before Any Deposit

The 30-Day Due-Diligence Window

Standard practice in Costa Rica is a due-diligence period of approximately 30 days negotiated into the purchase option agreement. During this window, the buyer's deposit is refundable if material problems are found in the title search or legal investigation. Do not sign an agreement that waives this period or makes the deposit non-refundable immediately. A seller who resists a standard 30-day due-diligence clause is a seller worth walking away from.

For maritime-zone properties, the legal investigation is more involved than a standard title search. Law firms conducting a full ZMT investigation, covering concession status, municipal approval history, ICT compliance, and occupancy rights, typically charge in the range of $3,500 to $6,500 for that work alone. That cost is reasonable relative to the purchase price and the risk of buying a concession with legal problems. For the initial registry and cadastral records review before engaging full legal counsel, check a property in Nosara or any other coastal market through Folio's records tool at a fraction of that cost.

Coastal Markets With Elevated Risk Profiles

Scams concentrate in high-demand beach markets where transaction volumes are high and buyer turnover is fast. The Pacific coast towns of Jaco, Tamarindo, Dominical, and Nosara all have significant portions of their most desirable real estate within the maritime zone. In Dominical and Nosara particularly, the irregular application of ZMT rules over several decades means some properties carry complicated concession histories that require careful legal review. If you are buying near any coastline, check a property in Dominical or the relevant town before you make any financial commitment.

Inland markets, including the Central Valley and areas around Lake Arenal, typically deal with more straightforward fee-simple title issues, though hidden liens, boundary disputes, and identity fraud are possible anywhere in the country.

What Folio Does and What It Does Not Replace

Folio is a due-diligence records tool. It searches Registro Nacional data and cadastral records to surface registry information quickly and affordably. Running a free Folio check before you engage an attorney gives you the basic facts - folio real status, recorded owner, cadastral linkage - so that you arrive at the legal phase informed rather than blind.

Folio does not replace a licensed Costa Rican attorney. Legal interpretation, ZMT analysis, corporate structure review, SETENA filings, and contract negotiation all require qualified local counsel. Think of the Folio check as the first step in a multi-step process, not the last.

Frequently Asked Questions

Can a foreigner own property in Costa Rica outright?

Yes. Foreigners have the same right to own titled, fee-simple land in Costa Rica as citizens. The main restriction applies to maritime-zone concession land, where a foreigner or a company with foreign majority ownership generally cannot hold more than 49 percent of a concession. For titled land away from the maritime zone, there is no ownership restriction based on nationality. Confirm the specific structure of any transaction with a licensed attorney.

How do I confirm a property title is real before paying a deposit?

Ask the seller for the folio real number and the plano catastrado number. Then pull a certified literal directly from the Registro Nacional yourself, or have your independent attorney pull one. That document shows the registered owner, recorded boundaries, all mortgages, and any court or tax annotations. Do not rely on a document the seller provides without cross-referencing it against the live registry.

What is the maritime zone and why does it matter for buyers?

The Zona Maritima Terrestre is the 200-meter strip inland from the mean high-tide line on Costa Rica's coasts. The first 50 meters is public domain that no one can own. The next 150 meters is concession land administered by local municipalities and the ICT. Property in this zone is not fee-simple title. It is a lease that can be renewed, modified, or revoked under conditions set by law. Buying concession land as if it were titled land is one of the most common and costly mistakes foreign buyers make.

Is it safe to use the seller's attorney or notary?

It is strongly inadvisable. In Costa Rica, notaries handle both parties to a transaction by convention in some settings, but your interests and the seller's interests can conflict directly. Always hire your own independent attorney who has no financial relationship with the seller, the seller's broker, or the developer. Your attorney should pull the registry records, review the title chain, check for environmental restrictions, and draft or review any option agreement before you sign it.

What should I do if I think I have already been defrauded?

Contact a licensed Costa Rican attorney immediately. Civil and criminal remedies exist under Costa Rican law and can be pursued through Poder Judicial. Document everything - wire transfer records, signed agreements, communications, and any property documents you received. Report the fraud to the Organismo de Investigacion Judicial (OIJ) for criminal investigation. Also notify your home country's embassy or consulate, as they can sometimes assist with referrals to reputable legal counsel. Act quickly, as asset recovery becomes harder the longer a fraud goes unaddressed.

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This guide is general information, not legal advice. Confirm material facts with a licensed Costa Rican attorney, notary or surveyor before any transaction.