Questions about Title Insurance

[costaricabuilder]

Isn't there only one legally authorized insurance company in Costa Rica?
According to the CR constitution the government guarantees the accuracy of a certified copy of a property title extract, issued by the Registry. The particular law that states this is Article 73 of the Public Registry Regulation. (Reglamento del Registro Publico, Artículo 73, Responsabilidad del Registro por la información contenida en las certificaciones. El Registro dará fe de la información contenida en una certificación hasta el momento de su expedición. Las variaciones ocurridas con posterioridad a la hora de su expedición no acarrearán responsabilidad alguna al Registro).

If a Notary/Lawyer conducts the correct due diligence for the property title research, no Title Insurance would be necessary, as the true state of a properties history will be revealed.

I have heard that if a Notary/Lawyer is negligent in such a title search, there is an insurance fund administered by the Dirrecion Nacional Notariado (Notary College), which all Notaries are bound to pay into, which would pay proven claims for negligence arising in this instance.

[Ivo]

That's another good one Tom. Actually, I have never heard of any title company paying a buyer as of yet as they always exclude in small print when there is doubt of clear title. There are several title companies now, and they all offer the same services. Stewart Title has gotten foot on the ground because they are a subsidiary of Banco Banex and Banex obliges anyone looking for a mortgage to take the title insurance through Stewart. Title Insurance is a US custom and they have been able to get their service accepted with the US buyers due to custom, not due to necessity. The use of a "real estate " attorney to do due diligence on the research of the title has more  value to me than any title insurance in the Costarican legal system. I would always try to stay away from attorney/notary who offers his/her services cheaper and does all kind of law. Look for the specialists in real estate and you'll be safe. There are many who say they are but few have the real knowledge.