Buying property in Costa Rica can be a good experience or a bad one. It very much depends on who you are dealing with ,who you can trust and if you get a guanantee on the property you have chosen at the time of closing the transaction from a USA Insurance company.
WHY LAWYERS TITLE GUARANTEE …. FOR COSTA RICA PROPERTY SALES
PROTECT YOUR INVESTMENT FROM FRAUD,ERRORS AND OMISSIONS
First some basic facts on the law, closing procedures and different risk in buying property in the USA vs Costa Rica.
Title insurance company protection in the USA is now over 100 years old and was invent by lawyers to settle claims that buyers had made and won in law suits over fraudulent statements and false ownership paper work given to the buyers by sellers, agents and their lawyers that was in many cases totally dishonest, misrepresented and completely worthless. Then the sellers, agents and their lawyers would disappear with the buyers money.
However when the buyers had finally won a law suit the sellers and their lawyers were gone. The buyers and their lawyers could not collect and recover their money from someone that could not be found. Had the buyer purchased a title policy the title insurance company was there to come forward pay the buyers claim of the fraudulent transaction and then the title insurance company would pursue the sellers and their lawyers to recover their money paid out for these claims. So the title insurance company's roll in the sale was to double check and comfirm who all the parties are and their statements about liens and owenership paper work where all in order before closing each real estate transaction they then insured for the buyer.
In many USA real estate sales to ensure the buyer is getting good free and clear titled property the seller pays the cost at closing for ...2 levels of protection for the buyer which are both a Warranty Deed and a Owners Title Policy for maxium protection for the buyer.
The USA courts has approved very strict criminal and civil laws,accounting forms and rules for real estate closing disclosure procedures . As well as the warranty deed and title policy protection to cover and reduce fraudulent real estate sales in the USA that are enforced by mulit state and federal agencies.
Today in the USA almost a 100% of all real estate purchase's are covered by title insurance policies that protect all the parties to the sale to some degree but mostly the buyers and including the banks and mortgage companies that loan the money to the buyers to close the sale know as a Lenders Title Policy. The advent of the USA title insurance market has become a model for developing countries worldwide and some of the USA largest title insurance companys now provide an international policy that is sold thru select title insurance agency in many countries worldwide including Costa Rica.
It is very important to remember that on any real estate purchase…when and if… you ever have a title defect claim issue especially on your Costa Rica real estate transactions you may have to ...find and place... a claim on any and or all of the following parties to the sale:
1. Your Lawyer
2. The Sellers
3. The Sellers Lawyer
4. Any other 3rd party that may have been involved with the title defect like: surveyor, appraiser government official, real estate brokers, lenders etc, etc.
Anyone of these individuals may be of no help to you in a claim even if you win a law suit by reason of their …death, out of business, out of the country, out of money and or out to defraud you. That is when your Lawyers Title Guarantee could have save you a partial lost and in some case from a total lost of your property , time and money.
5. If you have a title policy on the property subject to an title claim you simlpy file one claim on your title company. They will pursue the 4 separte parties above to resolve the issue or the title company pays you the stated amount in the policy for damages which is usually the full purchase price.
Here are some basic steps in a USA real estate sale( vs Costa Rica)
1. The use of a written sales contact in English that complies with USA state and federal laws and any claims will be settled in USA courts in USA dollars.
(Contacts are in Spanish and must be read and explained to the English speaking buyers in English by the seller or their lawyer, brokers or agents with claims settled in spanish in Costa Rican courts in their currancy )
2..Specfic closing procedures, paper work and uniform accounting forms, statements and disclosures are required that complies with USA state and federal agency laws.
( Closing procedures varies based the Costa Rican BAR rules that are in Spanish and at the point of closing there is no other procedures nor uniform closing statements or accounting forms used or required. They simply read you the contract line by line in their best English)
3. Sellers must fully disclose in writing all known defects that may effect the value of the residential property by USA state and federal laws.
(Sellers Property defect disclosure is not required nor explained to English speaking buyers by the lawyers that is is not required and the buyer must find all the defects)
4. Warranty Deed Seller gives the Buyer a specific and personal Warranty Deed guarantee that protects the buyer by criminal and civil laws against fraudulent statements hidden liens and false paper work that may be discovered for the life of the buyers ownership of the property. Buyers claims can be filed in USA courts and paid in USA dollars with the seller subject to other criminal law as well.
( No Sellers Warranty Deed guarantee nor disclosure requirements to the Buyer so the buyer must search out all defect prior to the closing . Afterwards all claims by the buyer if any must be made in Spanish and subject to the Costa Rican courts and paid in Costa Rican currancy.)
5. Owners Title Policy issued by Title insurance companies that are licensed and regulated buy USA state and federal agencies and laws The title company policy issue Owners Title Insurance policy guarantee's and protects the buyers for the life of the buyers ownership and as well as to all other buyers thereafter for defects in the title including coverage for the survey to the insured property.
( Costa Rica's Government owned insurance company INS does not have a Owners Title Policy. However there are at least 2 major USA Title Insurance Companies that do underwrite and their select lawyer agents sell Owners Title Guarantee Contacts . Currently the 2 companies here now vary greatly in the protection and coverage they provide to a buyer.
One of these agrees to only fix any Title defects that arise after closing using their best legal efforts in the Costa Rican courts but does not pay specific damages.
The other does pay specific damage as stated in the policy they issue on Costa Rica Property Title defects and those claims can be made in the USA courts and settled in USA dollars.)
6. Lenders Title Policy is also issued by the same Title Insurance company to the buyers lender/mortgage holder that gives the lender even broader coverage and protects lenders from fraudulent acts, false claims and loses by any party to the transaction on the property.
This has allowed USA lenders to loan more money at lower rates because it lowers their risk of future losses due to title defect claims they can now get insured. Title Insurance has been a main economic factor in the successful development of the huge USA real estate market. Title Insurance is now being accepted world wide as the best protection to promote modern real estate development for lenders and investors.
(Lenders Title Insurance is currently not available in Costa Rica)
7. Titling Real Estate Investments in your Personal Name or a Company Name coming soon by .......................Jan. 2007
7. Mortgages for Real Estate purchases in Costa Rica rules, rates and availability are coming soon by................. Jan. 2007.
8. Zoning, Land Use and Building Permits coming soon by .........................Jan 2007
Thank you for visiting our new Internet site THAT'S UNDER CONSTRUSTION. As an up-to-date business, we want to give you the opportunity to stay in touch with our company and our offers. A new content management system will enable us to always keep you up to date. Till then doing a little home work is recommended.
Please visit our link...COSTA RICA LAW
CONTACT IN CR.
Tel...800 LAWYERS TITLE
www.LAWYERSTITLEGUANANTEE.com
info@LAWYERSTITLEGUARANTEE.com
Tel . 506-222-1500
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CONTACT IN USA:
1-800 COSTA RICA
Tel. 1-813-920-6100
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