Untitled Property in Costa Rica
Costa Rica has a strong national property registry system that provides legal security to real estate owners and potential buyers. It goes without saying that purchasing a titled property provides the maximum legal security.
However, in rural areas, particularly in Guanacaste, it is still common to find properties without title—meaning that the previous owners did not register the title in the National Registry. Often, these types of properties are offered at below-market prices, since the buyer is buying a “right of possession” as opposed to a legally titled property.
This article will discuss the ins and outs of purchasing real estate without title, as well as provide an overview of the process of obtaining legal title for a previously unregistered, untitled property under Costa Rican law.
Información Posesoria
The judicial process, known under Costa Rican law as Información Posesoria, is a civil court proceeding initiated by the owners (or purchasers of the right of possession) of property that is not registered in the National Registry. The law allows anyone who has peacefully and continuously occupied or possessed a property for more than 10 years to register the property title in the National Registry. A new purchaser (who has possessed the property for less than 10 years) is able to use this legal process to register the title just as the seller would.
The requirements needed to complete the Información Posesoria are as follows:
Cadaster Plan (drawn up by a licensed topographer), valid for 3 years
Testimony of 3 witnesses who are neighbors (note: this requirement is waived when a new purchaser is using the Información Posesoria process to register title)
Certification of Land Use (issued by INTA - National Institute of Innovation and Transfer of Agricultural Technology)
Certification of Previously Obtained Property Titles via Información Posesoria (issued by the National Registry)
Environmental Certification (issued by MINAET - Environment Ministry) that the property in question is not within protected wildlife or forest reserve areas
Cattle Brand Trademark in the event the property is used for cattle farming
Once all of the requirements are met, the judge will issue an order requiring the National Registry to register the title. It typically takes at least 6-12 months to complete the process.
Considerations for Buyers of Untitled Property
If you are considering purchasing an untitled property, it’s important to consult with an attorney/public notary who is very familiar with both the Información Posesoria process and with the specific requirements for the deed transferring the right of possession. At North Pacific Legal, we have successfully handled many of these matters on behalf of our clients.