Coastal Real State
Transactions

STEPS

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LOI

Non-binding document  

Very general terms and conditions of the transaction

Drafted by the real estate brokers 

Signed without our intervention

What you need to know!

What to include in the LOI

Parties´ full names and ID numbers

Property ID number, area and survey number (and inventory, if applicable)

Purchase Price

Earnest Money Deposit percentage or amount (typically 10%) 

Escrow Agent (if one will be used)

Due Diligence Period (typically 30 calendar days)

Brokerage Fee and Agent(s) involved (typically 6% plus VAT)

Closing Costs (who bears them)

Period to prepare the SPA (typically 7-10 calendar days)

Exclusivity 

Notices Addresses

Expiration date and time

Any other information related to the transaction

Copy of the parties IDs ​

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SPA

Binding document

Written/reviewed by buyer’s counsel

Detailed in terms and conditions

Scope of due diligence, including special conditions

Choosing of escrow agent

Escrow Agent

What you need to know!

TLA Financial Services if funds are not going to be disbursed in Costa Rica at closing

Stratos Fiduciaria if funds are going to be disbursed in Costa Rica at closing

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Technical Due 
Diligence

What you need to know!

Topographic Report

Boundaries

Measurement

Constructions (footprint)

Construction Setbacks

Access to water via AyA, ASADA or well

Wells (artisan or drilled/concessioned)

Creeks, rivers, etc. (setbacks)

Access to electricity (nearest pole, if applicable)

All aplicable easements

Maritime Zone Concessions

+ In addition to the fee simple property due diligence +

Complete review of the corporation – company that holds the concession (including Public Registry, Litigation, Tax, Employment Matters, Material Agreements, etc.)

Review of the concession file.

Review of environmental documents.

 

At closing Prepare a trust agreement or endorse share certificates (including the national shareholder who must be provided by the buyer to comply with the Maritime Zone Law)

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Ongoing business

Fee simple property due diligence +

Review of the corporation – company that owns the business (including Public Registry, Litigation, Employment Matters, Material Agreements, Financial (loans, promissory notes, leases, security agreements, etc), Taxes, Health Permit, Commercial License, Legal Books, etc.

Development (condominium regime)

+ In addition to the fee simple property due diligence +

Review of the condominium bylaws

Certification from the Home Owners Association of the status of the property 

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