FAQs
- Does the list of foreclosures come from Banks?
- What exactly is the foreclosure process in Costa Rica?
Three dates are set by the Judicial System - each, eight business days apart. The starting bid for the first date is at the original note amount plus legal fees regardless of the balance owed or the market value. If there are no offers or transfer at this initial date, then the second foreclosure starts at 25% less- that is 75% of the note, or what is owed to the bank, plus fees. If at this proceeding, no title is transferred, then a third and last opportunity for bidding begins at 25% of the initial bid.
- Do you only deal in foreclosures?
No. We also advertise fire sales and REOs. All of these must be at least 80% or less of the actual market value and we also adjust our fees down to conform to our guidelines so you are guaranteed a great, unbeatable deal.
- How am I guaranteed a really good deal?
We use a conservative six-step process on each and every property before we offer it up as a good deal. For example, properties that are in foreclosure or pre-foreclosure are guaranteed to be at least thirty percent below current market values. To date, we have averaged better than 40%. For those that are not in foreclosure, we only advertise them if we can guarantee a 20% equity position upon acquisition. We are not Realtors. In fact, we are the opposite of Realtors in this country. There is no central multiple listing service in Costa Rica and this makes for difficult searches and usually makes for overpricing of properties. It is common to find the same property advertised on different realty websites for different prices. We negotiate an EXCLUSIVE bottom line price and offer it to you. We get compensation from you and not the seller. So in essence, our fiduciary responsibilities lay with you and we will never over price. Quit the opposite; we will reduce our commissions to make it work.
- What is the average time it takes to obtain a property?
It all depends on you. To date we have not exceeded 45 days from start to finish. We only work with serious buyers but will work with you for as long as it takes for us to find you the deal of your choice.
- How many foreclosures are there in Costa Rica?
This varies from week to week. But the number of foreclosures has increased by 50% since May of 2008. We have had weeks were the average has been 836 and others where it was pushing 1000. Lately, we are experiencing 120 plus new foreclosures a week.
- What are the types, price ranges and locations of these foreclosures?
We have lots, single family houses, condominiums, commercial properties, coffee and sugarcane plantations, mountain properties, forests, beach properties, anything imaginable. Our data base also includes vehicles, art work and industrial machinery. However, we work exclusively in real estate, and our prices range from as low as double digits, i.e., $60 thousand to six digits. And, we operate in all of Costa Rica.
- What are the average attorney’s fees to secure the properties?
You will not be paying more than 4.5% of the acquisition cost but this also depends on whether you hold the property in your personal name or as a Sociedad Anonima, (LLC or Inc.). The later is quite common, and if you can purchase the shares of stocks in the SA, then certain real estate stamps are not payable. This is always the cheaper and safer option. Consult with your Costa Rica attorney for additional legalities.
- Do I have to be present in Costa Rica to buy property?
No. We have sold property sight-unseen to foreign investors who are unable or unwilling to travel to Costa Rica to look for or close on investment or vacation properties. You will need legal counsel and/or a legal representative as we do not handle your money. Your money, however, must be present in this country on the date of foreclosure or contract ratification. Escrow accounts are set up by your Costa Rican attorney. Chicago and Stuart Title companies are also located in Costa Rica and can set up an escrow account as well.
- Can foreigners own property in Costa Rica?
Yes, foreigners have the same rights as nationals in owning real estate. In fact the Costa Rican Government encourages foreigners to own property in this country.
Any additional questions? Please go to our Contact Us page. They will be answered within 24 hours.
