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Blockbuster had a store in Escazu some years ago near El Cruce, but I understand that the franchise went broke, because too many videos were not returned.
Yes, an existing Sociedad Anonima may have liabilities or contingent liabilities against it, which may be difficult to determine. The liabilities follow the Sociedad Anonima, regardless of who owns the shares. Buyer beware.
Title Insurance in Costa Rica does not cover acts of fraud. The Notary who handles the transfer of the title, is charged with the conduct of the necessary due diligence to determine the state of the property title. The Costa Rica Notary Directorate manages an insurance fund, paid into by all practising Notaties, which is used to pay proven claims of negilgence arising from these circumstances. A Notary is personally liable for any shortfall, in settling such a claim. About the only thing Title Insurance is good for, is encroachment/lot boundary problems arising from a faulty land survey. If a person had any doubts about the reliability of an existing survey, a new one could be obtained from a professional land survey for less than $500.00 US, for a regular building lot.
A handgun can only be owned in one’s personal name, if you have Residency status, or are a Costa Rican citizen, with the proper permitting. Likewise, to carry a handgun, a special permit to carry is required, which includes a psycological test, and is also restricted to Residents or citizens. Visitors may possess a handgun by way of having it owned by their Costa Rica corporation, but no permit to carry the handgun is possible.
Yes, a due diligence period where the purchase deposit is completely refundable at the end, should the property not “checkout” for the purchaser, is a much more difficult scenario to negotiate with a Tico seller. Normally, a Tico seller will want some non-refundable deposit cash up-front, regardless of what happens with the due diligence.
The Notary would be obligated to register the Deed after it has been executed, regardles of his or her fees being paid. The Notary Code provides for disciplinary action against the Notary, if the Deed is not registered by the Notary within six months of the date of its execution. It’s incumbant upon the Notary to make his or her fee arrangements prior to the Deed’s execution.
The practise as you outline for foreign nationals holding concession property, indirectly, through a trust agreement with a Costa Rican, is, of course, the common practise. The problem is the law does not address the issue of beneficial ownership of the concession, only the structure of the legally registered concession holder, which will, of course, be a corporation with 51% of the shares held by the Costa Rican and 49% by the foreign national (Note: The foreign national can become the 100% interest holder in the corporate entity holding the concession after five years of Residency status in Costa Rica.). This trust arrangement is legal under Costa Rica law. I agree that it probably circumvents the intention of the legislators, but so does Costa Ricans marrying foreigners by Power of Attorney, so that the foreigner can acquire Residency status, or citizenship in Costa Rica (Note: This practise is currently under review in the Legislative Assembly). Many examples can be given where poorly worded legislation allows for practises to emerge, which were never intended by the legislators.
Normally, real estate purchase agreements are written to include a 10% deposit of the property purchase value, with a due diligence period, where the purchaser can make their stated inquiries, and rescind the agreement with the deposit returned to them, should they have legitimate concerns with proceeding. If the purchaser doesn’t rescind the agreement at the conclusion of the due diligence period, then the agreement becomes binding, and the deposit funds non-refundable. Should the purchaser then not complete the transaction, the deposit monies are usually forfeited to the seller, as liquidated damages. As a Realtor, your listing agreement with the seller, should provide for your reimbursement for srvices rendered, from this forfeited deposit amount. If you are a purchaser’s agent, you should likewise have a written agreement with your Client. at the out-set, stating how you will be compensated for your services.
As to the Notary’s responsibility to attend on the execution and registration of a deed, Articles 36 and 40 of the Notary Code, provide that a Notary must be satisfied with the capacity of the parties to undertake the transaction, the identity of the parties (ie. documentary proof of identity by passport or cedula), the legitimacy of the transaction, and that it conform with all statutory requirements (ie. provision of required supporting documentation), or notarial services must be refused by the Notary.
Yes, liquidated damage clauses exist, and are valid in Costa Rica, in real estate sales contracts. Damages in a real estate transaction where the contract is silent as to liquidated damages, would be those damages which naturally flow from the breach. Lawyers are not entitled to liquidated damages, but are entitled to claim for their sevices rendered to the date of the breach, on a “quantum meruit” basis, being a reasonble fee for service, based on the fee tariff published by the Colegio de Abogados (Lawyers College).
Essentially, Private Contract Law in Costa Rica is based on the Constitutional Premise (Constitucion Politica Article 28), that competent parties are free to convene any contract between themselves, which does not contain clauses or stipulations which are immoral, illegal, or contravene recognized good social customs and the public order, and don’t prejudice third parties.
The easiest way to fund a Rentista Residency Application is to place $60,000.00US per single person, or for each for a husband and wife, and $30,000.00US per minor dependant child, in an account (must be in the personal name of the Applicant, not a Company)at Scotiabank de Costa Rica, S.A. Scotiabank is the most efficient Costa Rica bank in dealing with such Applications, usually having the requisite Rentista Residency letter ready within a couple of days. The funds must be committed for five years, with the best interst rate of return being the Bank’s current CD rate. It should be noted that Scotiabank de Costa Rica, S.A., although having the parent Bank in Canada, the Bank of Nova Scotia, operates as a separate legal entity in Costa Rica. In otherwords, Scotiabank de Costa Rica, S.A., must “stand on its own two feet”, and is not “bank-rolled” by the parent Canadian entity.
In Costa Rica, the more likely party to hold completion funds for such legal transactions, such as purchasing real estate, and similar such transactions, requiring the notarizing (protocolizing) of documentation, and registration in the National Registry, would be a Notary Public (Note: All Notaries in Costa Rica are Attorneys, but not all Attorneys are Notaries). Article 9 of the Notary Code, requires all Notaries to contribute annually to a Guaranty Fund, which would reimburse victims of acts of negligence, or fraud committed by a Notary. The amount of compensation which can be paid from the fund for any given proven claim for negligence or fraud by a Notary, is the equivalent of 200 times the monthlly salary of a level 1 office worker, which amount is adjusted annually in the month of January, by the Government, and is currently the sum of 173,087 colones. Multiplying this sum by 200 and using a coversion rate of 518 colones to the US Dollar, the current amount available from the fund for a proven claim would be approximately $67,000.00US. This does not absolve the Notary from satisfying any shortfall in the claim, from his or her net worth, or being sanctioned with a criminal penalty, should the facts support.
I would recommend Jere McKinney of Costa Rica Home Inspections. Jere is from the U.S, but has lived in Costa Rica for over twenty years. He is a resident of Ciudad Colon, a town just west of San Jose, and is available to travel to where ever the inspection is needed. I have found him to be very thorough, and reasonably priced for his services. His telephone numbers are: Home- 249-1231; Cell- 356-0315
The best route to follow between Ocotal and Turrialba, would be to proceed to Liberia, where you would intersect the main Pan American Highway. Head in the direction of San Jose, as far as the next major town of Canas, where you would turn left and head toward Tilaran and Lake Arenal. Follow the north lake shore road through Nuevo Arenal to La Fortuna. From La Fortuna, head toward the Caribbean Coast passing through the towns of Muelle and Puerto Viejo de Sarapiqui. From Puerto Viejo, head to the town of Guapilies, where you will intersect the main highway between San Jose and Puerto Limon. You will turn left onto that highway and head in the direction of Limon, as far as the town of Siquires, where you will turn right onto the highway for Turrialba.
The roads are paved all the way, but as this is the rainy season, potholes will be developing, and there maybe slides or wash-outs. All-in-all it will be a very interesting drive, and you will see some very beautiful countryside.
