Costa Rica Real Estate Magazine

Technical Due Diligence: a)- Basic items: i)- Boundaries, survey and setbacks review and auditing. For these purposes an independent surveyor is sent to the property to measure the boundaries of the property as they currently are on the field, and to compare such information with the one shown on the current existing survey of the property to find out if the boundaries on the field and the measure of the property are accurate in relation to what is shown in the survey of the property or indicating what differences were found, if any encroachments exist and if there is consistency with the maps of the Cadastral Registry. The surveyor will also be looking for water streams or water springs on the property or its vicinity, as certain setbacks apply to them, which determine protection areas on which no development may take place. It may also be recommendable to request a review of zoning setbacks. i)- Having a soil test performed on the Property. This item comprehends hiring a company specialized on this type of tests in order to perform drillings on the property’s soil and an analysis of the physical conditions of the property’s soil to produce a report which will indicate the conditions of the soil (bearing capacity, b)- Desirable Items.

improvements it will be necessary to review the situation of this tax for the property in order to make sure it is paid and up to date or, in the opposite case, to know what is the amount owed. v)- A review to confirm that Seller is up to date on all obligations required for the transfer of the property. i)- Zoning certificate. This item basically comprehends obtaining a certificate from the Municipality of the jurisdiction where the property is located, indicating if the property is zoned for the intended use for which Buyer is acquiring it, as well as the applicable setbacks and other relevant zoning items. ii)- A review of use regulations that apply to the property. This will include a review of any Covenants, Conditions and Restrictions (CCRs), Home Owners Association regulations, Condominium Bylaws, Ecological and Conservations Easements or any other similar regulations to determine the regulations that will apply to the use of the property. iii)- Utilities availability. This item comprehends a review of the situation of utilities existing on the property to determine if there are actual service connections established (and their payment status) or if such services are actually available for the property. b)- Desirable items:

Disclaimer: information contained in this article is for illustration, informative and reference purposes only. It is not intended to serve as specific legal counseling. Each specific real estate transaction requires the corresponding specific review and counseling from the corresponding legal and technical professionals. Once all of the information and documentation resulting from the due diligence process is presented to the Purchaser, it is important that he/she makes a detailed reading and review and that any questions or inquiries that may arise be presented to the corresponding professionals, to ensure that a clear understanding of the condition of the property is obtained for purpose of the respective property purchase decision making process. The permeability percolation analysis included) and which will include what recommendations should be considered for a building process on the property given the results of the test. ii)- Engineering, structural and condition review of improvements. If the property has any buildings or houses, an independent engineer and/or home inspector will be hired to make an engineering and structural review of said improvements to determine their condition, as well to review the conservation and operational conditions of the structures and their systems. i)- Water test. This is a test where a sample or several samples of water are taken on the property and sent to a laboratory to determine biological potability of the water and, if so desired, also chemical potability of the water. and c)- Additional Items.

52 COSTA RICA REAL ESTATE MAGAZINE