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| Purchasing |
Status of the Property
The first step when interested in a specific parcel is to inspect the current condition of the property. The potential buyer or his/her Real Estate Law representative must conduct a title search at the Public Registry, or at to determine who the owner is and detect any liens or encumbrances on it.
Recorded Survey
The second step is checking the status of the property's survey or plat. Many parcels have old surveys that are not accurate or updated. To make sure the area stated on the survey matches the one recorded in the Public Registry, Real Estate Law Firms always hire a topographer to inspect the property and make any needed changes to the plat.
Sale and Purchase Agreement
When the buyer is not ready for closing the purchase but wants to tie it down, Real Estate brokers issue a Sale and Purchase Agreement (SPA). This document includes detailed terms and conditions, and it is signed by both SELLER(S) and BUYER(S). After the agreement is signed, the buyer must deposit 10% of the total purchase amount to retain the property.
Deed of Transfer
At the closing, a deed of transfer is established before a Notary Public and both SELLER and BUYER sign. The Notary then submits a copy of the deed to the National Registry to be duly inscribed, which usually takes approximately 2 weeks.
Business Organizations
As a very convenient option for foreigners, establishing a business organization is the safest, most recommended procedure to acquire any type of ownership, whether it is real estate, cars, weapons, etc.
The two types of organizations the MV Law Firm offers are:
- Anonymous Corporation (S.A.)
- Limited Liability Corporation (LLC)
The main difference between both types is the administration. The Limited Liability Corporation is run by a manager with Full Power of Attorney or by a group of managers or vice-managers, as the owner deems appropriate.
Both types of organizations need the following requirements to be constituted:
- Personal information
- Full name
- Marital status (times been married)
- Occupation
- Street address
- Passport number and scanned copies
- Phone number
- E-mail address
- Physical mailing address
- Board of Directors
It is the supreme organ of the corporation, which determines the changes or nature of the organization by expressing the collective disposition of its members.
The board consists on 4 directors, although not all positions must be filled:
- President
- Secretary
- Treasurer
- Auditor
- A Controller, Resident Attorney or Agent must be appointed and must be an Attorney at Law based in Costa Rica.
- Power of Attorney must be assigned to one or more people the directors consider appropriate, or to the Attorney at Law in charge of constituting the corporations.
- Stock Capital
An initial Stock Capital with the respective distribution of stock shares must be detailed. The capital can be established with the minimum amount of $10,00 USD; however, most companies get established with a $100,00 USD minimum.
- Full name for corporation
In order to save time, Law Firms usually have new corporations with their corresponding names already constituted ready to be owned by new clients. However, owners always have the option of changing the name of their corporation.
All these different requirements are usually requested in a Corporation Form that Law Firms provide to clients. The firms actually walk clients through the whole process of establishing a corporation.
- Powers of Attorney
According to each specific case, different types of power of attorney can be issued.
- Full Power of Attorney. It grants unlimited power to the representative, allowing purchase, sale, mortgage, among other transactions, to be conducted by such person. It can be limited when specifying the restrictions desired.
- General Power of Attorney. It is solely intended to be used for administrative purposes, such as hiring personnel for business, and signing invoices or other documents strictly related to the company's activity. It may also be limited when specified.
- Special Power of Attorney. It entitles the representative to execute one or more specific functions, which can be administrative or managerial. This power differs from the other two in that it does not need to be inscribed or recorded in the Mercantile Section of the Public Registry.
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