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Buying directly from a real estate developer in Costa Rica can be an excellent investment—but only if you do your homework first.
Over the last twenty years, Costa Rica has seen hundreds of successful residential communities, condominium towers, gated neighborhoods, and beachfront developments. At the same time, there have also been projects that were delayed for years, never completed, or failed financially.
Most real estate developers in Costa Rica do NOT work with real estate agents. Some don’t because they have their own team. Others offer very little commission to oblige buyers to visit without having their own representation. A good solution is to hire an experienced buyer’s agent and offer to pay half the commission.
The difference between a great investment and a costly mistake usually comes down to one thing:
Due diligence.
Whether you’re purchasing a condominium in Escazu, a beach home in Guanacaste, or a mountain residence in the Central Valley, this Developer Due Diligence Quiz will help you objectively evaluate the project before signing a purchase agreement.
Before You Score the Developer
Do NOT believe any answers the developer’s salespeople give you. Ask for PROOF and check the facts. Visit the project in person whenever possible and ask yourself:
Is the neighborhood improving?
- Are the access roads paved and maintained year-round?
- Are schools, supermarkets, hospitals and services nearby?
- Is the property vulnerable to flooding?
- Is there a reliable legal water and power source?
- Are other projects nearby successful?
- Is internet service available?
- Is the area attractive for future resale?
- Should you evaluate the developer only after evaluating the location?
Costa Rica Developer Quiz
1. Developer Experience
Has the developer completed projects in Costa Rica?
None (0)
One project (+2)
Several completed projects (+5)
2. Financial Stability
Does the developer have financing secured?
Unknown (0)
Developer financing only (+2)
Bank financing approved (+5)
3. Legal Structure
Is the property owned or controlled by the development company?
No (0)
Through an option or trust (+2)
Fully owned by the developer (+4)
4. Escrow Protection
Where are your deposits held?
Paid directly to developer (0)
Developer’s attorney (0)
Independent escrow company (+3)
Independent attorney escrow (+5)
5. Building Permits
Are all permits approved?
Unknown (0)
Some approvals pending (+2)
Building permits approved (+5)
6. Water Availability
Does the project have a legal water and power source?
Uncertain (0)
Private well (+2)
Municipal or legally approved concession (+5)
7. Infrastructure
Roads, drainage, electricity and utilities are:
Planned only (+1)
Under construction (+3)
Fully completed (+5)
8. Internet & Utilities
Limited service (+1)
Fiber optic internet available (+3)
9. Homeowners Association
Not established (0)
HOA documents available (+3)
10. Purchase Agreement
Does your contract include:
- Construction deadlines
- Default remedies
- Refund provisions
- Warranty
- Dispute resolution
- Allows for home inspection
No (0)
Yes (+5)
11. Independent Attorney
Are you represented by your own attorney?
No (0)
Yes (+5)
12. Construction Payments
How are payments structured?
Large upfront payments (0)
Payments tied to construction milestones (+5)
13. Reputation
Search online for:
- Google reviews
- Lawsuits
- News articles
- Previous buyers
- Completed communities
Poor reputation (0)
Excellent reputation (+5)
14. Transparency
Does the developer provide:
- Company information
- Management biographies
- Physical offices
- References
- Completed projects
No (0)
Yes (+5)
15. Bank Financing for Buyers
Can Costa Rican banks finance purchases in the project?
No (0)
Yes (+3)
Banks perform extensive due diligence before financing buyers, making this a positive indicator—although it is not a guarantee.
Scoring
- 60+ points — Excellent
The developer demonstrates a strong track record, financial stability, and transparency. Continue with your attorney’s legal due diligence.
- 45–59 points — Very Good
A solid project with only minor concerns. Verify any missing information before moving forward.
- 30–44 points — Proceed Carefully
Some important questions remain unanswered. Obtain additional documentation before making deposits.
- Below 30 points — High Risk
Unless you fully understand and accept the risks, consider looking at other developments.
Additional Tips for Buying Pre-Construction in Costa Rica
Even an excellent developer cannot eliminate every risk. Protect yourself by following these best practices:
- Always hire your own independent real estate attorney.
- Never rely solely on the developer’s sales representative.
- Verify property ownership through the National Registry.
- Check if pools, tennis courts and other promised amenities already built.
- Confirm all permits have been issued before making large payments.
- Keep deposits in independent escrow whenever possible.
- Tie payments to completed construction milestones.
- Visit completed projects built by the same developer.
- Hire a home inspection before you sign off on the unit.
- Understand HOA fees and future maintenance costs.
- Never let excitement replace careful due diligence.
Final Thoughts
Costa Rica offers many outstanding real estate developments built by experienced professionals with excellent reputations. Thousands of buyers have successfully purchased new homes, condominiums, and investment properties throughout the country.
The goal isn’t to avoid buying from developers—it is to choose the right developer.
A few extra hours of research before signing a contract can save months or even years of frustration or loss of your investment later.
If you’re considering purchasing pre-construction property in Costa Rica, I’d be happy to help you evaluate the project objectively before you commit.
Feel free to leave your comments on this blog or share it on your social media. Would you like a Zoom meeting with me?
I am Ivo Henfling, the founder of the American European real estate network, widely regarded as the leading real estate authority in Costa Rica. Feel free to contact me now. Are you ready to purchase or sell one of the most beautiful Costa Rican homes now? Then contact us now.
