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LAND REGISTRY, TITLE and FOREIGN OWNERSHIP All titled land in Costa Rica, whether it is registered following the newer ¨ Folio Real ¨ system or the older book/page/entry system, can be accurately and safely title-searched in order to determine all relevant aspects on the specific property, such as ownership, mortgages, liens, annotations or other issues, that may affect ownership rights, or the possibility of transferring said property to a third party. Title searches on ¨ Folio Real ¨ properties may be initiated in the computer system, which is accessible online but will then possibly require a follow-up in the book/page/entry system, particularly when the computer search shows liens, encumbrances or other property characteristics that were ¨ inherited ¨ from older transactions on that land before it was transferred to the ¨ Folio Real ¨ system. Additionally, although the computer system will indicate a list of liens and encumbrances, in most cases a thorough and complete title search will require the review of microfilmed or scanned documents indicating the details of such finds, which are not accessible online and can only be obtained at the offices of the Public Registry. Although, as indicated, the ¨ Folio Real ¨ is accessible online, generally private parties do not have the legal training to be able to accurately interpret the information acquired, as well as to know how best to follow-up any required further steps. This is why it is highly recommended that a knowledgeable legal professional be

used to perform and report on the title search. In addition to the title search, if the property is owned by a corporation, it is essential to undertake a corporate search at the Commercial Section of the Public Registry. Only by doing so, can you verify that this corporate entity transferring the property is in good standing and that the proposed signatory of the transfer deed does indeed have the legal power to do so. Land ownership is guaranteed for all by the Constitution. Both Costa Rican Citizens and Foreign Nationals are treated equally in this respect. Owning property while out of the country should not be a problem as long as you take steps to protect that property (land in particular as opposed to residential homes) if you are out of the country for extended periods of time in order to avoid any squatter problems. This is especially true for rural and agricultural land, however, if you take the right precautions (i.e. having a caretaker or having someone checking the property

periodically as well as doing regular checks on the ownership status at the registry and any non-authorized legal movements such as a lien being placed due to a loan being taken out on the property) then you can avoid these problems. FINANCING a PROPERTY in COSTA RICA - Financing a property is not quite as simple as it is in North America. Although some developers offer financing, most property purchased by foreigners are paid in cash. In the past, when most of the foreigners moving to Costa Rica were Retirees, they would just sell their home in North America or Europe and use that money or a part of it to buy a home or land in Costa Rica. Nowadays, there is the added interest of moving to Costa Rica by individuals and families who are not at a retirement age yet and thus financing takes on more importance. Some banks can offer up to 80% financing, but will usually require you to be a legal resident in order to give you the loan.

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