Real Estate Desk - Dedicated Buyer's Broker - Dominical

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_disclaimer

closing; write a transfer deed
The deed is the document that transfers ownership of the property. The transfer is made with the buyer and seller signing the transfer deed (called an "escritura madre") in the presence of an attorney. The attorney then drafts the transfer deed and registers the sale at the Registro Publico.

Custom dictates that if the buyer pays in cash, he selects the attorney to draft the transfer deed. If the purchase is financed, then the transfer can be made in various other ways.

closing costs
Closing costs consists of Stamps, Taxes and Notary fee, will total just under 4% of sales price.

By custom, buyer and seller split the closing costs, but the split may be adjusted up or down to fit the occasion. Closing costs consists of:

Taxes: Documentary Stamps - Agrarian, Hospital, Municipal, Bar Association, National Archive and Fiscal - totaling 0.55% of sale price. You must pay a Real Estate Transfer Tax at 1.51% of the sale price and a Registration Fee of 0.5 % of sale price.
Notary Fee: 1.5 % of the first $5,000 (million Colones) and 1.25 % of the balance. It is customary in Costa Rica to register a property at a figure far less than its actual sale price. All transfer taxes and fees discussed above are figured as a percentage of the reduced sale price -- with the exception of the notary.
The Notary drafted the documents. He or she knows exactly how much money changed hands. He or she collects the full .5 to 1.25% of the sales price

In case of financing, the following has to be paid as well:

Mortgage Registration Fees: Usually, the person getting the (private) financing pays for the costs of drafting and registering the mortgage instrument. A mortgage may be issued at the time of the sale by adding a mortgage clause to the transfer deed.

registration of the deed....