What to Check Before Signing a Rental or Purchase Contract

The moment you sign is the worst time to find a problem. Any serious review is done beforehand — and is documented. Here’s the checklist we apply to every closing.

For Purchase

Seller’s Identity

Request a valid ID card or passport and verify that the name matches exactly with the registered owner at the National Registry. If the property is owned by a corporation, ask for a valid corporate certificate and the document authorizing the sale.

Registry Status

• Literal certification from the National Registry dated within 30 days.
• No encumbrances (mortgages, annotations, liens).
• No restrictions (easements, rights of way) limiting use.
• The registered survey should match the physical property.

Associated Debts

• Up-to-date municipal real estate tax.
• Services (water, electricity, gas if applicable) up to date.
• Current condo fees plus certification from the administrator.
• No pending extraordinary fees approved for payment.

Critical Clauses in the Agreement

• Realistic closing timeline (typically 45–90 days).
• Suspensive conditions: financing approved, due diligence without issues, consistent plans and registry.
• Treatment of deposit if a condition fails.
• Who pays which closing costs.

For Rental

Identity and Representation

If signing with a real estate agency, confirm they have current authority from the owner. If signing directly, validate that the person is truly the owner (same name as in the Registry).

Term and Applicable Law

The legal minimum term for residential rentals in Costa Rica is three years with renewal, according to the law. Any “12-month, non-renewable contract” is void. If you live on the property and the contract states 12 months, the legal term still applies.

Deposit and Guarantee

• Amount: typically 1 month’s deposit + 1 month in advance.
• Return: clear conditions for when and under what rules.
• Retention: only for quantifiable damages, not normal wear.

Utilities and Costs

• What the rent includes (condo fee, water, internet).
• Who pays VAT if the property is commercial.
• Rules for pets, modifications, subletting.

Exit Clause

Before signing, read what happens if you need to break the contract. Early termination usually carries a penalty — but the amount should be reasonable and proportional.

The Step You Can’t Skip

Before signing any contract, photocopy all documents and send them to your lawyer. A $200 legal review might save you from a $20,000 problem. If you are buying, also follow the step-by-step guide.

General information. Each case has particularities that should be analyzed by a legal professional.