Common Real Estate Scams

There are loads of horror stories about Costa Rica real estate. Some are severe where investments or properties are lost to scam artists, others are much less serious like paying too much for what you are buying.  If you read how the scams operate and follow the basic advice on how to protect yourself, you should be able to navigate the system with more confidence.

Real Estate Agents are “A Dime a Dozen”

The truth is no prior experience or education is required to sell real estate.  Want proof? Google “costa rica real estate.” As of September 15, 2006 there were almost 18 million sites! That is more than four sites per every man, woman and child in all of Costa Rica!  (Note:  Google is constantly changing their search algorithms and the results may vary.)

Real Estate Agents ARE NOT Your Friends!

Even if they are, mixing business and friendship is not a good idea. The vast majority of the abuses of client trust come from the real estate industry. Our section on “Real Estate Agents” lists many of the common scams and abuses.

The Laws are Confusing

While the laws of Costa Rica can be arcane and sometimes conflicting, Garland Baker of Costa Rica Expertise has written a series of articles about Costa Rica real estate law and is considered an expert on the subject.  Time spent reading his prior articles is well worth while.

Attorneys May Have Ulterior Motives

Next in line are the attorneys.  There are a myriad of games they can play to charge you too much or even steal your property from you. One that is not reported all that often is when the attorney has a conflict of interest and doesn’t disclose it.  (By Costa Rican law, attorneys are not required to disclose any conflicts of interest).

Developers That Don’t Care

Developers, like real estate agents, don’t have your best interests at heart.  Read more about Costa Rica Developers here.

The Bottom Line

You are responsible for performing your due diligence. If you delegate that responsibility to someone else, you may be risking more than you bargained for!