Buying Pre-Construction in Costa Rica

Pre-construction projects (or “Pre-Sale”) are very common residential and commercial developments in Costa Rica where the units are sold prior to commencement of construction.  Developers sell the units to raise capital and demonstrate the viability to investors or lenders.  In some cases, pre-sales occur due to high demand for the property.  Costa Rica fell victim to a flood of these projects during the real estate bubble and many investors, retirees, and foreigners lost thousands of dollars when the banks froze credit in 2008.
In some cases, lenders pulled the plug on financing despite the fact that the developer was solvent and possessed sufficient capital.  This is especially visible in Jaco and Guanacaste where you will see large un-finished condominium projects.   As with any investment it is crucial to do your due diligence and work with a respected real estate broker who will protect your interests.
Following some basic guidelines when buying pre-construction in Costa Rica is essential to protecting your investment. When considering the purchase of a pre-construction unit, it is important to view the overall plan for the community.  The plan is more than just a map; it should be a comprehensive plan encompassing all aspects of the project including;
* Goals and Policies
* Land Use
* Type of Housing
* Natural Resource Use
* Open Space & Recreation
* Services & Facilities
* Transportation and Circulation
* Implementation
* Environmental Impact and Preservation
Review Covenants, Conditions, & Restrictions (CC&R’s):  CC&Rs are covenants, conditions, and restrictions on a property in Costa Rica. They regulate the way the property (generally a condominium) is to be maintained and indicates who is responsible for such maintenance. A majority of developers in Costa Rica do not have CC&R’s properly recorded on the title.  You must insist on seeing the title and verifying the registration of the CC&R’s on the subject property.  It may include disclosure statements regarding conditions of approval for the project or an existing land use that is located next to the subject property and any other information the developer wants to include in the document. It may also include creation of a homeowners association or architectural review committee. CC&Rs are recorded on the title of the property in the National Registry of Costa Rica as a restriction. Enforcement of CC&Rs is the responsibility of the individual property owner or the homeowners association.
Understanding Costa Rican pre-construction law is a bit cumbersome, especially when it’s written in Spanish! That’s why working with a professional real estate broker in Costa Rica is the safest way to protect your investment. Vesta Group Dominical is the expert in pre-construction, condominium, luxury home, land, and luxury hotels for sale in Costa Rica. Contact Us today and learn more about investing in Costa Rica real estate and Pre-Construction.

James Drews

James Drews

Vice President, Sales. Age 43 Prior to co-founding VESTA GROUP, James moved to Costa Rica in 1996 and began his real estate career here by co-founding Dominical Realty. In 2001, the company obtained a Coldwell Banker independent franchise, and three years later partnered with another Coldwell Banker franchise in Costa Rica to become Vesta Group, the Master-Franchise-holder for the entire country. As a member of the Global Association of Realtors and the U.S.-based National Association of Realtors, the Master Franchise has already grown to ten (10) offices throughout the country, with several more currently in process. James is married to a Costa Rican, and proud father of 3 daughters ages 7,10, and 20. James, is well respected among the local and foreign community, and carries high ethical standards, and a hard working family man that seeks to provide his customers with the best level of service possible. James goes out of his way to seek out new frontiers that are ahead of the wave, and specializes in rural and remote farmland, developing land and collecting legacy type of properties. Surfing big waves, fishing, hiking, and travel are favorite pastimes. Daily goal is a new discovery. Approaching 20 years of living in Costa Rica, James knows his territory well, and has much love for his new country and it's people, and will guide you well, and share his resources and local knowle​d​ge with you to make your new venture successful.​ ​