2/5 Second Edition: The Pre-Contract Phase

Property found!!! 😀

(Dear reader Thank you for following this valuable tips and information, stay with us through this whole process.) 

The pre-contract phase is where your property search becomes serious. You’ve found the property you love, but before moving forward, it’s essential to ensure everything checks out. Here’s what you need to know, and how we can help you navigate it:

1.⁠ ⁠Conduct a Background Check 📜

The first step is verifying the property’s status in the National Registry. As your real estate agents, we can help with these preliminary steps. This will confirm:

Ownership: Ensures the seller is the rightful owner.

Liens or Encumbrances: Verifies the property is free of debts or restrictions.

Zoning and Use: Confirms the property can be used as intended (residential, commercial, etc.).

💰 2.⁠ ⁠Make an Offer

Once the background check is clear, you can present an offer. Work with your real estate agent to:

• Evaluate the property’s market value.
• Draft a formal offer that reflects your terms and conditions.
• Negotiate effectively to secure the best deal.

Communicate effectively with your real estate agent because the expertise in the process will help you avoid mistakes and accomplish the negotiation goal.

 3.⁠ ⁠Hire a Real Estate Attorney

Legal expertise is invaluable at this stage. At amomonteverde, we have worked with experienced and trusted attorneys that we can recommend if you don’t already have one. Your attorney will:

• Review the offer and draft a preliminary purchase agreement.
• Ensure all legalities are addressed, protecting your interests.
• Advise whether to purchase the property in your name or under a corporation.

4.⁠ ⁠Decide on Ownership Structure 📓

In Costa Rica, you can purchase property as an individual or through a corporation. Your attorney can help you choose which is best to help you reach your goals. Each option has advantages:

• Individual Ownership: Simple and straightforward for personal use.
• Corporate Ownership: Offers tax benefits and simplifies transfers if selling or inheriting.

Why is This Phase Critical? ❤️

Taking these steps ensures that:

Your investment is secure and legal.

You avoid costly surprises or delays.

You’re fully prepared for the contract phase.

Next Edition: The Contract Phase ✅

In our next edition, we’ll dive into the details of opening an escrow account, performing due diligence, and preparing for the closing. Stay tuned to learn how to navigate these essential steps with confidence! Please contact us if you have any questions or are ready to begin your search for the perfect property. We are here to help!