Costa Rica Expertise LLC

By Garland M. Baker
Special to A.M. Costa Rica

Today many property owners seem to be drunk on blue sky.

Blue sky is not a brand of guaro — an alcohol derived from pure sugar cane — or other intoxicating beverage, but an addiction to the recent skyrocketing real estate prices. Most are familiar with the term. It means the intangible portion of a price above what is reasonably supported by the current market.

Those with real estate training use the term to represent the difference between the price a seller puts on their property and what the market probably will bear in price.

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By Garland M. Baker
Special to A.M. Costa Rica

Mortgages are becoming more and more available in the local market for expats who want to borrow money to buy property. There is a lot of money available for financing from local financial institutions. Private parties also have money to lend, but usually the interest rates are higher.

What most foreigners do not know about borrowing money in Costa Rica is how the foreclosure process works if one should default on a loan. Unscrupulous private lenders, attorneys and real estate people take advantage of the ignorance of homebuyers and, in some cases, use this knowledge to steal back properties they have sold.

On the other hand, deadbeat debtors can betray honest creditors with Costa Rican legal magic and procedural sleight-of-hand tricks.

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Officials there brush off complaints about delays

By Garland M. Baker
Special to A.M. Costa Rica

In more and more cases, buying property in Costa Rica can hold an innocent property buyer hostage for years, bankrupt them and even kill them with stress and strain.

Only a few years ago, it was rare to read about property fraud in the local press. Nowadays, it is probably one of the most important topics of the news. Sometimes even a legally perfect property can carry hidden problems. Costa Ricans and savvy expats can use these complications to sour even the best and honest real estate transaction.

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Her word rules, and he goes to jail

Get out of the house!

By Garland M. Baker
Special to A.M. Costa Rica

Women are kicking their mates out of the house in record numbers in Costa Rica. Some of them are enjoying it and using the law designed to protect women against domestic violence to swindle expats. Many expats come to Costa Rica in search of a relationship and end up shooting themselves in the foot by making bad choices.

Police in Heredia say women are abusing Law 8589 Article 7. The article states, “In order to protect the victims, they will be able to request, from the start of the complaint, the protective measures contemplated in the law against domestic violence, as well as the necessary precautionary measures foreseen in the penal code of procedure.”

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By Garland M. Baker
Special to A.M. Costa Rica

Legal circles are buzzing with the expectation that the Sala IV will soon open up the Zona Maritima Terrestre — the maritime zone — to foreigners. They may soon be able to hold and develop public land next to the beach without making under-the-table deals.

The first 200 meters, 656 feet, of coastal land inland from high tide is Costa Rica’s maritime zone. The first 50 meters of the 200 meters, 164 feet, is un-exploitable beach land. The rest, 150 meters, 492 feet, is public land. This area can be developed by private parties through a concession with the state.

Much of the nation's tourism infrastructure at the beaches can be found at least partly on concession land.

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