By Nathalia Romero, Copywriter and Real Estate Writer 10/10/2025
Buying property in Costa Rica involves several steps designed to protect both the buyer and the seller. When financing, legal representation, and fund management come together through reputable institutions, the processes become transparent and secure from start to finish.
The real estate acquisition process in Costa Rica real estate unfolds when working with three key professionals: Second Street for financing, Invicta Legal for representation, and TLA Escrow Services for fund management.
1. Offer and First Contract: Submitting a Formal Offer
Finding the ideal house and making a formal offer through your real estate agent is the first stage in the process of buying it. An Option to Purchase Agreement is the first enforceable action that the parties take after accepting the offer. This purchase agreement establishes a clear structure that governs the remainder of the transaction by defining the purchase price, deposit (typically held in escrow), payment terms, due diligence schedule, and closing date.
The buyer and seller define major details in this agreement, including the purchase price, deposit amount, payment conditions, and significant due diligence and closing dates. Both parties set up a transparent framework that directs the transaction by outlining these terms early on, guaranteeing that all upcoming legal, financial, and logistical measures comply with the terms that were agreed upon.
2. Opening the Escrow Account: Secure Your Funds
Once the offer is accepted, the buyer deposits the initial funds into a segregated escrow account handled by TLA Escrow Services. This step is fundamental to safeguarding in the acquisition process, ensuring that the funds are kept completely separate from any other client accounts and cannot be accessed until all contractual and legal requirements are met.
TLA does a complete compliance check, which includes Know Your Customer (KYC) forms and anti-money laundering verifications for all parties involved. These safeguards ensure the transaction's integrity and ensure compliance with both local and international financial regulations.
Throughout the process, TLA Escrow serves as a neutral third party, handling deposits, reviewing documentation, and ensuring the precise exchange of funds at closing. Their participation guarantees financial transparency and accountability, giving buyers and sellers confidence that all monetary transactions are fully authorized and transparent.
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3. Legal Due Diligence: Protect Your Investment
At the same time, a thorough due diligence procedure is carried out by Invicta Legal, a Costa Rican law firm specializing in real estate and property law, to guarantee the property’s legal integrity. This phase, considered one of the most crucial steps in the entire acquisition process, ensures that the property being acquired is free of risks or irregularities that could affect ownership or future use.
The lawyers of Invicta start by examining the property's title record at the National Registry and confirming the seller's ownership. They look into the existence of any liens, mortgages, encumbrances, or unresolved annotations that might jeopardize the title and verify that the seller has all the legal authority to transfer the property. To make sure there are no unreported problems or claims, the team also looks at the property's register history, which usually spans at least 10 years.
In addition to these legal inspections, Invicta Legal examines municipal records to verify that the property conforms with local government regulations and that all land and property taxes are current. They evaluate public access rights, land-use restrictions, and zoning plans to make sure the property can be used or developed as the buyer desires.
The legal team confirms that development permits and legal setbacks are being followed for locations with current buildings. Additionally, the team verifies the legal availability of utilities, which are crucial for construction projects or undeveloped properties. They collaborate with surveyors, topographers, or environmental specialists as needed to handle technical or conservation-related issues.
In Costa Rica, where title insurance is rarely used and comprehensive legal due diligence is the primary safeguard, this rigorous verification process is particularly crucial. Invicta Legal gives customers total confidence and legal security in their investment by thoroughly examining every practical and legal element of the property before any money goes out from escrow or the closing proceeds.
4. Loan Approval and Coordination: Financing Properties in Costa Rica
In case Second Street finances the purchase, the procedure moves into a structured financing phase in which the lender works closely with the escrow provider and the legal team to make sure that all legal and financial requirements are appropriately met. In order to verify that the asset satisfies the required loan requirements and that there are no unresolved legal or regulatory issues, Second Street examines the due diligence results, property evaluation, and ownership documentation.
In this phase, the lender oversees the loan approval procedure, which includes drafting the mortgage agreement and any registration-related supporting documentation. Following official loan approval, Second Street deposits the money straight into the TLA Escrow Services-managed escrow account, guaranteeing that it is kept safe and is bound by the same compliance guidelines as the remaining amount of the transaction.
The funds are not released immediately; instead, they are held in escrow until Invicta Legal confirms that all contractual obligations have been fulfilled and the title transfer has been officially registered at the National Registry. This careful coordination between the lender, legal representatives, and escrow provider guarantees that financing, documentation, and property registration occur in perfect sequence, protecting the interests of all parties and maintaining full transparency throughout the process.
5. Closing and Registration: Final Steps
After due diligence is complete and financing is secured, the notary prepares the Public Deed of Sale for all parties to sign. Once signed, funds are disbursed from escrow according to the settlement statement. The deed is then submitted to the National Registry to officially record the change of ownership. If financing is involved, the mortgage is simultaneously registered in favor of the lender.
6. Post-Closing Process: Compliance and Updating Ownership in Costa Rica
Upon completion of registration, the property is officially registered under the buyer’s name, and escrow releases the funds to the seller. Following registration, the buyer must ensure compliance with all post-closing obligations, including updating property ownership for property tax, registering in public services, and the HOA in luxury condos for sale under the new owner’s name, ensuring compliance with the luxury home tax and the solidarity tax when applicable. In addition, corporate buyers must maintain proper compliance, including filing the annual Beneficial Ownership Declaration and, where relevant, registering with SUGEF if the holding entity engages in financial activities. These steps conclude a transparent and legally secure transaction, with all documentation properly recorded.