A friend of mine sent me a real estate article about Costa Rica today.

The article basically stated what we already knew about the real estate crisis except that this article was an actual news article.  Here is a link to the article in question, http://www.canada.com/travel/Crisis+bites+beach+boom+Costa+Rica/1409664/story.html

After reading this, I thought that as responsible real estate agents in Costa Rica we would stress again how important it is to fully do your rsearch when purchasing property that is still being constructed or in development.  So buyer beware and make  sure that you know exactly where their fundings are coming from.  If the fundings are coming from the people pre-purchasing the condominoum or house then beware.

If the funding is coming thru a bank and the company does not have at least 15% in emergency fund beware.

I hope this helps and to be on the safe side in this tough economy you should buy a home that is on the market instead. 

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Recently in Costa Rica, Sala IV (the constitutional court)  revoked Cahuita and Puerto Viejo of their city status due to these towns using the city status as a way to sidestep the maritime zone laws of Costa Rica.

I am mentioning this as a buyer beware type of announcement in Costa Rica.  Often, real estate buyers in Costa Rica are dupe into thinking that they can purchase beachside property in Costa Rica at a bargain price.

Even though it is possible if you are a Costa Rican, the laws are quite strict since technically all land countrywide within 50 meters of high tide is for public use only and all land 150 meters that is further inland belongs to the Costa Rican government.

The only exception is if you are in city because cities are exempt from that law.  However, it does not mean that a foreigner can just purchase the land that is within 50 meters of the ocean at high tide.  Only Costa Rican can do so.  The only way to get around it is if you have a Costa Rican as a partner and then you can own the land.

So next time a real estate agency tells you that its okay for you to purchase prime beachside real estate property be very careful…