Sometimes being a Realtor is not the most respected profession. I understand that there are lots of people out there, and especially in Costa Rica, who are not professional, are crooks, and don’t know what they are doing. And therefore, I halfway understand when a local says they don’t need a real estate agent and will go directly to the owner. However, when I hear a foreigner say that they want to buy a property directly from a local with no agents involved, I shiver. What can go wrong? After 18 years of living here and hearing horror stories, here are five things that can go VERY wrong.
1) You could end up paying WAY more than the property is valued. You don’t know the value of the land. Every local will tell you that the property is “ganga” or cheap, even if they’ve priced it at $1,000,000. I adore this country, but I have been told so many times by locals that they will put a high price on it and eventually someone will come along and pay it. A good realtor will know the value of the land and other properties in the market.
2) You might have bought a property that can never be transferred into your name. Well, maybe NEVER is an exaggeration, but it could easily take 10 years in the courts. You don’t know if the person who says they are selling the property is truly the owner in the registry. Sometimes, it could be someone out to fraud someone, but often it is people who honestly believe they own the property and don’t. How? A grandson has inherited his grandfather’s property, but nothing was ever changed in the registry, and the grandfather has passed away so there is no one to sign over the property to you. Or, there was a divorce and the property is no longer in the person’s name who is trying to sell it.
3) You might have bought a property with liens and mortgages attached. You could have bought a property that only has rights to half of it, or a mortgage that hasn’t been taken off the registry. Even if a mortgage is paid, it must be requested by a lawyer for it to be taken off of the registry. These must be cleared before you consider buying a property.
4) You might have bought a property with concessions, allowing roads to be widened or high tension electrical wires to run right through your property. Sometimes these are on the registry papers and sometimes they aren’t and it’s important to know what is going on in the community to know. Imagine buying a property in Orotina that will be directly next to the new airport.
5) Can you live without water? Unless you have been in the area for an extended period of time, you don’t know which areas have good access to water and which ones get shut off for hours at a time. You very well could be buying into a development with no water rights at all. And forget building anything if you don’t have water approval.
Now, it’s true, not every agent out there will check on these things in advance. They should have, but not all will. So, it is important to know your Realtor, get recommendations and ask these questions. If they can’t produce a copy of the registry and plano (plot) for each home you want to see, be careful. But to say outright that you don’t want to use any Realtor for the transaction is like going into surgery without a surgeon or going into court defending yourself in a murder trial. NOT recommended. Will you save money if the owner doesn’t have to pay the commission? Look at number one. If you are paying the market rate or better, wouldn’t you prefer that to paying double? The seller pays the commission so even if you look for properties with an agent and decide not to buy, you don’t pay anything. So, do your research and select someone who can truly help you and guide you in the Costa Rican jungle. It’s worth your weight in gold.
Tina Newton who is part-owner of Tristan & Newton real estate is always glad to help you in the search for a home, to sell a home, or even to just answer any questions you have about living in Costa Rica. Check out the website, facebook page, or send a direct email to find the home of your dreams.