What Does Due Diligence Involve in a Property Purchase?

Due diligence refers to the set of legal, physical, and technical assessments carried out on a property prior to its purchase. It is a critical stage that determines whether the investment is viable, secure, and free from hidden risks.
This process includes reviewing the property title, ownership history, and any liens or encumbrances, as well as evaluating land use regulations, zoning plans, geographic location, and the overall feasibility of the intended project.
In Costa Rica, 26% of the national territory is designated as protected areas, which often imposes additional restrictions on nearby properties. Moreover, Municipal Zoning Plans establish limits such as maximum coverage, permitted land use, building heights, and setback distances.
It is essential to work with a multidisciplinary team—including attorneys, surveyors, and engineers—to verify:
• The legal status of the property.
• That there are no outstanding taxes or annotations.
• That the property is properly located and measured.
• That the intended use or development is feasible.
Comprehensive due diligence is the foundation of a secure and intelligent investment.