If it is time to sell a property, be it an investment property, or a privately owned property in the Costa Rica, there are now many ways to achieve it.
How to sell a Costa Rica Property by Owner (For Sale By Owner)
If selling Property as the Owner (For Sale By Owner) ensure that you have all the necessary documents for the property, such as the deed of ownership, tax receipts, and any other relevant legal documents. If there are any unresolved debts or legal issues regarding the property, they should be cleared before listing it.
Foreign buyers maybe subject to approval or have special regulations related to selling or buying properties in Costa Rica, and something to consider if you are selling to an international buyer.
You can have the property appraised by a licensed professional to determine its market value. This can help you set a competitive price, though you may also choose to consult local real estate listings for similar properties.If needed, make minor repairs or improvements to enhance the property's appeal. Clean the property, touch up paint, fix broken fixtures, etc.
Use local and international property websites to advertise your property, and include high-quality photos and detailed descriptions of the property (e.g., number of rooms, amenities, location).
Social media platforms can help you reach a wider audience, especially for international buyers. Research the local market to get an idea of price to help set a competitive price to attract buyers.
Once you receive offers, you'll negotiate directly with potential buyers. If you're not familiar with the process, it's advisable to hire a lawyer to help with the negotiation and ensure that the sale complies with local laws.
If an offer is accepted, you may draft a "promissory sale agreement", a document outlines the terms and conditions of the sale, including price, deposit, and deadlines for the final transfer.
The final contract should be signed by both parties in the presence of a notary public.
The buyer's payment will be made, typically in escrow, and the transaction will be finalized at the Land Registry. The notary will handle the necessary paperwork for registering the property in the buyer's name.
As the seller, you'll be responsible for paying the Capital Gains Tax (if applicable) and other transaction fees, such as notary and registration fees.
How to sell a Costa Rica Property by Real Estate Agent
Choose a licensed real estate agent with experience in the Costa Rica market. Look for agents who are fluent in the language (Spanish and possibly English) and have good reviews or references.
Real estate agents typically charge a commission of 5-6% of the final sale price, plus ensure this fee is clarified upfront and negotiate a good deal.
The agent will handle the advertising, scheduling of showings, and negotiations. They usually have access to multiple listing services (MLS) and established networks to reach more buyers.
The agent will help stage and photograph the property to present it in the best light possible. They'll also craft a detailed listing description to highlight the property's features.
Once potential buyers show interest, the agent will present offers to you. They will help you negotiate the price and terms of the sale.
After accepting an offer, the agent can assist in preparing the promissory sale agreement. They may work with a lawyer to ensure the terms are legally sound.
As with selling by owner, the property will be transferred to the new owner with the assistance of a notary. The agent may help facilitate communication between you, the buyer, and any third parties involved in the transaction.
When working with an agent, the commission is typically paid from the seller's proceeds after the property is sold.
Selling a Costa Rica Property
Whether you choose to sell on your own or through an agent, it's highly recommended that you consult with a lawyer specializing in Dominican property law. They will help ensure that the contract is properly executed and the sale complies with all legal requirements.
Selling by owner can be more cost-effective but requires more effort and knowledge about local laws. Hiring an agent simplifies the process but involves commission fees. If you're new to the process or the legal landscape, hiring an agent or at least consulting with a lawyer is always a good idea to ensure everything goes smoothly.
Note if selling or renting in Costa Rica this information is purely a starter guide, and legal advice should always be sought.
Popular areas of the Costa Rica with International Sellers:
