Costa Rican Property Rights

Property rights in Costa Rica are very different from most western countries such as the US. In the US, adverse possession property rights usually state that squatters need 10 years or longer to aquire any meaningful property rights. This differs greatly from the laws in Costa Rica, which give squatters property rights in as little as 3 months time. These laws were established in Costa Rica to allow poor farmers to own land that was being unused, essentially preventing large, unfarmed tracts of land owned by the rich. These laws have been manipulated by many con artists running scams on unsuspecting foreigners looking to invest money in Costa Rican Real Estate.

Squatters Rights in Costa Rica

Squatters, or precaristas, begin to receive rights to a piece of real estate after 3 months of living on the land. After a year, the squatter can apply for expropriation with the Agriculture Development Institute (IDA). If the IDA declares the property in conflict, the land is sold and handed over to the squatters. Oceanfront real estate in The Maritime Zone can not be owned, it can only be leased, and prime beach front properties often attract many problems with squatters. If suqatters are not evicted within 3 months, the process of eviction can be long and expensive, often resulting in the loss of the property.

Preventing Squatter Problems

If you are purchasing property in Costa Rica, it is imperative that proper steps be taken to prevent squatters from overtaking your property. The local Costa Rican authorities are often on the side of the squatters, viewing the problems that arise between outside land owners and squatters as a "Tico VS Gringo" problem. Property management services are almost always required to keep a property free from squatter issues. Make sure that at least every 3 months proof is taken that the property is free of any land invaders. Absentee property owners should also carefully document all payments made to property caretakers, in order to prevent the caretaker from obtaining squatters rights on the porperty themselves, which has happened in the past. Before buying the property, work closely with a Costa Rican Real Estate Lawyer and make sure the property doesn't have a history of squatter troubles, which may indicate future issues.