Costa Rica Expertise LLC

New chapter: 'I want my house back!'

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

The second part of a true story of an expat's agony and defeat is supposed to end today. The Gringo has to pay his girlfriend to get his house back.

This poor man was thrown out of his house one evening for raising his voice to his girlfriend’s adult son, a punk rock type known to use hard drugs like crack cocaine. The expat spent the night in a very cold and uncomfortable jail cell. In the lockup, he had to listen to his girlfriend yuck it up with the police officers who arrested him.

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

Powers of attorney are one of the leading causes of property and other kinds of fraud in Costa Rica. The cases surrounding stealing by means of a power of attorney also are the hardest ones to fight and win. Judges rulings abound where they tell plaintiffs they are out of luck because they gave someone else permission to steal from them. Expats can lose everything to a power of attorney.

Everyone living or doing business in Costa Rica should know the five basic powers of attorney and know when to use them and, most importantly, when not to use them. Many expats give the right to steal to others without even knowing they have done so.

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

In Costa Rica, the law is explicit: tourists should not carry guns or other weapons even though many would like to do so.

According to Costa Rica’s Article 63 of the Ley de Armas y Explosivos, the controlling weapons law, the only exception is made for foreigners who are temporarily entering the country with their weapon(s) for the specific purpose of competition or hunting. Article 50 states a tourist can buy a gun here, but only for use outside of Costa Rica, and the tourist must declare the weapon at customs upon departure. These facts may be particularly disconcerting to those foreigners accustomed to the right to bear arms, or to anyone who has experienced a theft or robbery in Costa Rica.

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

What does it mean to be carbon negative or carbon positive? What does it mean to be carbon responsible? The country aims for carbon neutrality by the year 2021. Expats living in Costa Rica can be part of the solution instead of part of the problem.

Carbon may also be good business for Costa Rica. The country’s carbon real estate business is still in its development stages but it's heating up fast. There are also ways to use the Costa Rican civil code to build carbon responsible communities.

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Finding a mate requires extra scrutiny here

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

Shooting oneself in the foot is a common practice in Costa Rica. Eye candy overwhelms some expats — men and women alike — into making bad decisions that affect their lives forever.

Many men and some women come to Costa Rica in search of love. They come here because they could not find love at home.

Others come to the country just for the sexual adventure. Costa Rica is considered one of the top sex tourism destinations of the world. Amazingly, the current president admitted this fact in a news conference recently. Many past presidents have ignored the reality.

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Big step is electronic signatures

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

Expats need to prepare themselves for Costa Rica’s Gobierno Digital and Notaría Digital.

The digital government is slowly but surely taking over tasks that were terribly inefficient. Two examples are the issuing of drivers' licenses and passports. The Banco de Costa Rica, a key player in Costa Rica’s digital government, has begun taking over both. As of July 1, the bank had given out 10,500 appointments for renewing driver’s licenses and passports.

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

Notaries who handle property transactions have been told that they must register and provide reports to the nation's financial watchdog. The order means that information about purchasers and sellers will be more widely available.

Resolution number 814-2007 of the Notary Directorate, published June 22, advises that all notaries dealing in financial transactions must register with the Superintendencia General de Entidades Financieras. This includes, but is not limited to, purchase and sale contracts, mortgages, liens, and trusts.

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Bad guys exploit statute of limitations

A.M. Costa Rica graphic
The delay in cases here is simply a crime

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

Costa Rica is experiencing a meltdown in its court system. This is especially true in the criminal courts. Many cases are lapsing and are in mora judicial, judicial neglect.

Calling or writing officials regarding a case is a joke.

An answer to a written pronto despacho, an immediate attention request, last week was horrifying. The prosecutor in charge of an obvious stolen property case stated she is overwhelmed and asked that victims respect her predicament.

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Restrictions that can run with the deed

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

People move to Costa Rica for a variety of reasons. Some come to join communities, others to build them.

Some expats are leaving the United States or planning to leave because laws, politics and Big Brother have them crazy. Others leave because they are wanted by the law or unwanted by society.

Whatever the reasons, Costa Rica is filling up with foreigners. Some of these outlanders are making small communities or sustainable developments — little utopias.

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Norwegian artist Edvard Munch could have been thinking of bureaucracy as inspiration for his famous 1893 painting "Scream."

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

What is Tributación Directa doing? One does not know whether to get drunk, curse or cry.

Tributación Directa is the tax collecting agency.

Last year, taking company books to be legalized was a long process in San José. A registrant had to fill out a form, play musical chairs, and then leave the five or six books for over a month.

In February, the tax department decided to become efficient. The first thing officials did was make a new rule that made all unused, printed legal books currently in existence obsolete. They wanted the first page of any book they legalized to have a special form imprinted on it.

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Yes, there is more paperwork

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

Real estate buyers need a good checklist to stay out of trouble when buying property in Costa Rica. However, most people forget about what needs to happen afterwards. Here is a checklist for after the closing.

First, the property needs to be transferred at the Registro Nacional. This is the notary’s job, but many do not rush to get it done. Many drag their feet for days, weeks and some even months. This is dangerous. An unscrupulous seller can sell a property to someone else, or even sell it repeatedly. Sure, that is illegal, but it happens, and the first buyer has hell to pay to get the property back. When property is purchased in Costa Rica, transferring it to the new owner immediately is a must.

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

The rule of thumb in Costa Rica is when you cannot plan — or do not plan — panic.

This malady is part of the culture. People in the campo, the rural areas, learn this from childhood. Parents instruct kids sent to the pulperia, the corner mom and pop grocery, to buy one egg for breakfast. Not two, one for breakfast and one for lunch, or three, one for breakfast, one for lunch and one for dinner. Just one. One for breakfast.

Why, because the parents were not taught to plan and organize by their parents, so they do not teach their kids to do so.

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Ticos have to wrestle with 55-year-old law

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

A trip to the U. S. Embassy before Semana Santa proved very interesting and enlightening. The visit shed light on a long-standing irritation for Costa Ricans.

An expat asked an embassy worker how he could expedite his Tica girlfriend’s tourist visa application so she would not have to wait in line. There were at least 100 visa applicants waiting to speak with a consular officer that morning. The embassy worker asked him if he wanted to speak with a senior consular officer. He said yes and sat down to wait.

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When expats die, their kin have to pick up the pieces

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

Can loved ones afford an expats death in Costa Rica? Are they ready for what they find here?

Recently, a man died and his sister had to drop everything — all her responsibilities in the States — and hop a plane to Costa Rica. He died of natural causes not as a victim of a crime or accident. She was the only family member who could afford the trip. No doubt, it was going to be expensive.

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

Immigration law in Costa Rica is currently a circus. People's tempers are raging.

Immigration employees do not know the answers to questions. If one is lucky enough to get an appointment, it could be so far into the future one seriously wonders if he is going to be around to use it. There is a moratorium on renewing foreigner identification cards until July because the renewal system has disintegrated.

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The Gringo never even saw it coming

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

A U.S. citizen returned to Costa Rica in February 2003 to find his lawyers living in his Pacific coast villa. They had taken all his possessions and burned them to complete the takeover.

A criminal court case ensued, and the lawyers won. They got away with transferring millions of dollars in real estate to different companies to cover their tracks of plunder.

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

Electronic banking in Costa Rica has grown up. It is now easy, fast and efficient.

Transfers from Banco Interfin last week to the national banks, Banco Nacional, Banco de Costa Rica and Banco Crédito Agrícola de Cartago, worked without a hitch. Transfers from Banco de Costa Rica to the private banks Banco Interfin, Banco San José, Scotia Bank, and Banco Cuscatlan worked just as flawlessly. All banks in Costa Rica are currently interconnected. Transfers can be made in either U. S. dollars or Costa Rican colons.

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Crooks are getting smarter

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

A good detective can catch crooks in Costa Rica. The court now voids contracts, deeds, documents and deceptive acts more than before based on mere indications and clues of wrongdoing. Good thing too, because day by day the wicked get worse and believe that they can get away with anything here.

Even expats get caught up in stealing property and other assets that are not theirs because they believe they will not get caught by the law. It is true the judicial system is slow and inefficient at times, but it is equally true the country is striving to make it better.

Legal issues in Costa Rica involving theft and fraud usually form a triangle of players: the victim or plaintiff, the defendant and a third party. For example, in property fraud, the victim represents the true owner, the defendant is the crook, and the third party the person who bought land from the crook.

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

There still are opportunities in real estate and real bargains for those people with patience and tenacity.

One possibility is the judicial auction.

The Boletín Judicial publishes information on properties going to auction in almost every edition. Buying real estate at auction is easy. One just needs to know the rules and have persistence. It is common to go to 10 or more auctions to find a deal.

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Technique opens up other sources for cash
By Garland M. Baker
Special to A.M. Costa Rica

Can a person or an institution lend money anywhere in the world in any currency and tie up assets here? The answer is yes, and to do so is not hard but a little technical.

Many foreigners would like to buy property in Costa Rica but do not have any credit in this country. Or they would prefer to work with their lender back home.

As the world shrinks, some lenders are looking for ways to lend money to real estate buyers in Costa Rica. But they do not know how to register a security interest here.

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