7 Common Mistakes Foreign Buyers Make in Costa Rica

I've closed dozens of deals in Guanacaste since 2005, and I've also watched a handful blow up. Almost every disaster I've seen came down to the same short list of avoidable mistakes. None of them are exotic. They're the corners people cut when they're excited, in a hurry, or trusting the wrong person. Here are the seven I'd tattoo on every new buyer's arm if they'd let me.

1. Skipping the title study

This is the big one. Before you buy any titled property, your attorney must run a title study at the Registro Nacional to confirm the seller actually owns it and that it's free of mortgages, liens, judgments, and boundary problems. I've seen "sellers" try to move land they didn't fully own, and lots carrying old debts the buyer would have inherited. The title study is non-negotiable. If someone tells you it's fine, skip it, they know the property, that's precisely when you insist on it.

2. No water letter

A gorgeous lot with no legal water is a gorgeous place to stand and cry. In much of Guanacaste, water is the constraint. Before you buy land, get a water letter (carta de agua) from the local ASADA or AyA confirming an existing connection or an available concession. Dry-season reality here is real, and "there's a well" or "the neighbor says it's fine" is not the same as a documented, legal source. Verify it in writing.

3. Wiring money without escrow

I wrote a whole post on this, and I'll keep repeating it: never wire funds directly to a seller or an agent. Your money moves through a SUGEF-registered escrow agent with proper source-of-funds documentation, and it releases only when the deal's conditions are met. Anyone rushing you to skip escrow and wire directly is a red flag, full stop. This is how wire-fraud victims get made.

4. Buying in the Maritime Zone blind

The first 200 meters from the high-tide line is the Maritime Terrestrial Zone, and most of it isn't sold as titled property. It's held through concessions, which come with rules, restrictions on foreign ownership percentages, term limits, and municipal oversight. Concession property can be a fine investment when you understand exactly what you're buying, but buyers get burned when they assume "beachfront" means "titled like back home." Know which one you're getting, and have your attorney explain the concession terms before you fall in love.

5. No local lawyer (or using the seller's)

Hire your own independent Costa Rican attorney. Not the seller's, not the developer's, not a friend's cousin who "knows real estate." You want someone whose only job is protecting you, running the title study, drafting your SPA with the right contingencies, and answering to you alone. It's the best money you'll spend in the entire process, and it's a fraction of what a bad deal costs.

6. Overpaying because you didn't check comparables

Costa Rica doesn't have a tidy MLS with public sold-price history like the US. That opacity means asking prices can be all over the map, and out-of-town buyers sometimes pay well above market because they had nothing to compare against. Work with a broker who actually knows the local micro-market, Sámara prices differently than Nosara, which prices differently than Tamarindo, and get a real sense of comparable sales before you make an offer. Excitement is expensive.

7. Ignoring HOA fees, road access, and easements

The last one is really a cluster of "boring" details that wreck deals after closing:

• HOA and community fees. Gated and planned communities carry monthly or annual fees and rules. Read them. Know what you owe and what you're allowed to build.
• Road access. Is the road to your lot public, or a private easement across someone else's land? Legal, recorded access is not a given here. Confirm it.
• Easements and setbacks. Rights-of-way, utility easements, river setbacks, and zoning can limit where and what you build. Your survey (plano catastrado) and attorney should surface these before you buy, not after you've poured a foundation.

Are these mistakes common even with honest sellers?

Yes. Most deals that go wrong don't involve a villain. They involve a rushed buyer, a missing document, and an assumption that "it'll be fine." The fixes are just diligence, not paranoia.

What's the single most important safeguard?

Your own independent attorney running a full title study, plus escrow for the money. Get those two right and you've eliminated the majority of the risk.

Can I really buy safely as a foreigner?

Absolutely. Foreigners buy safely in Guanacaste every day with full ownership rights. Safety comes from following the process, not from luck.

The honest bottom line

Every one of these mistakes is preventable with a good attorney, escrow, and a broker who tells you the truth even when it slows down a sale. Costa Rica is one of the best places on earth to own a home, and it rewards buyers who respect the process. This is general guidance from two decades on the ground, so confirm every specific with your Costa Rican attorney or notary before you commit.

If you want a broker who'll walk this checklist with you honestly, in Sámara, Nosara, Playa Carrillo, or Tamarindo, let's talk, or start with our property search. I'd rather lose a sale than watch you make one of these.