If you’re about to sign an option agreement to buy property in Costa Rica, here are the key points you should consider and negotiate:
- Initial Deposit: Typically 10% of the purchase price, though legally it can be up to 25%. The exact amount should be agreed upon by both parties.
- Escrow Services: We strongly recommend that the deposit be held by an escrow company rather than given directly to the seller, to ensure protection and reimbursement if needed.
- Due Diligence Period: Negotiate a sufficient period to complete all legal and technical reviews. Ensure the contract specifies that the deposit is refundable if issues arise.
- Closing Costs: Legal fees, taxes, and government stamps typically amount to about 4% of the purchase price. The contract should clearly state who will cover these costs—buyer, seller, or both.
All agreements should be clearly documented in writing. Legal representation is essential to safeguard your interests.
