Many people make the mistake of putting too much trust in real estate brokers and agents when thinking about that property purchase in their new country of residence.This can lead to disaster! You must always bear in mind that that nice, friendly, real estate person who speaks your language and may even be from your home country isn't working for you, neither are they your best friend -- despite appearances! You must always remember that the agent is working for the seller and the seller's interest at all times. Secondarily, they are working for their own benefit because the more they charge you for a property, the more commission they make!
Fortunately, there are things you can do to protect yourself from becoming a victim of te "gringo gouge," or, worse yet, having your money stolen by a team of real estate thieves, which many times includes a crooked lawyer in the group.
The first thing you must remember is to have good, competent, disinterested legal counsel that works for you, not the seller or broker.
You would be amazed how many times I have heard the sad tale of someone who lost their life's savings because they allowed themselves to be led around by the nose by unscrupulous "professionals" whose only goal is to separate you from your money!
Here are some tips to help you survive the jungle:
1. Never use the real estate broker's or seller's lawyer to "take care of" the deal! You need to have your own, competent legal counsel who works for you, independently, and make sure they review the paperwork and the public registry to verify everything the other side has told you.
2. You should insist on title insurance, which in Costa Rica is called a "title guarantee." If it can't be issued, don't walk, run away from the "deal."
3. Make sure you are paying no more than fair market value for the property. Unfortunately, in Costa Rica, this can be hard to determine.
4. Watch out especially for properties at the beaches. There are special laws that apply within the Maritime Zone. Make sure you have competent legal counsel tell you if the property complies with all regulations if it is within that zone. There has been widespread non compliance with the Maritime Zone Law in the past, and the government is now destroying structures that are non compliant.
5. Don't believe those who tell you that you can take a shortcut on any zoning or other permits that you need for a property or proposed construction or development activity. Paying bribes is not a good idea.
6. Consider using a buyer's broker, as the buyer's broker represents your interests, rather than the seller's, and is worth every penny they charge. Many times they can get you a discount off the asking price of a property, and they can show you listings from any regular broker or seller because they are a fee based service and they work for your interests not the seller's.
We can provide you with buyer's brokerage services. Send us a HelpDesk Ticket to find out more.
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