Real Estate Perez Zeledon

Great news for real estate buyers in Costa Rica.  A new decree protecting consumers was signed by President Oscar Arias Sanchez on August 6, 2009 and became effective as of October 27.

The new law requires that real estate developers register their projects with the Ministry of Industry, Economy, & Commerce.  Developers must show financial solvency sufficient to complete their respective projects and requires that consumers only make phased payouts for pre-construction projects.   Buyers are also protected from sales contracts that force them to surrender their rights or allow developers to escape liability for unfinished projects or breach of contract.

These new regulations are long overdue, as many consumers fell victim to fraud by developers that sold pre-sale projects and never started or completed construction.

We are excited about these new requirements as it will enhance the protections for our clients and for our brokerage.  In the past, we had to say no to developers pushing pre-construction.  We did not want to recommend a product that could be risky to our buyers.  Now, with these new regulations in place, developers can show that they are in compliance with the law and prove their financial solvency to deliver the finished product while our consumers remain protected by proportional pay-out schedules and professional escrow services.

Posted by:

Aaron Dyer | Broker Manager
Coldwell Banker Vesta Group Perez Zeledon
www.cb-perezzeledon.com

This entry was posted on Thursday, December 17th, 2009 at 12:27 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.