Title insurance here can cause misunderstandings

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

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Is title insurance legal in Costa Rica?

An Instituto Nacional de Seguros ruling Sept. 29 says that title insurance was not legal in this country, but that now it is and has been since July 1997.  However, insurance officials say the legality could change in the future.

The decree from the legal department of the insurance monopoly explains title insurance is not insurance, but a guarantee or a bond.  This finding is a flip-flop of the insurance monopoly's last ruling in 1976 that said title insurance is an insurance and that no company in Costa Rica can sell it except for the monopoly known as INS.

The national insurance company became a monopoly with law No. 12 of Oct. 30, 1924.  Only INS can sell insurance.

INS further stated that title insurance is an Anglo-Saxon creation and is not necessary in Latin America or Costa Rica because Roman law governs Latin countries.  According to INS, the Registro Nacional and licensed public notaries make property transactions safer than in the Anglo world like the United States.

Registro Nacional turns its back on obvious frauds

By: Garland M. Baker B.

Exclusive to A.M. Costa Rica

Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live!

The Registro Nacional confirmed its policy last month of turning its back on fraud.  The government institution stated in its publication “Materia Registral” that fraud is the exclusive responsibility of the courts and not of the Registro Nacional. The ruling came from the administrative directorate of the organization.

Property records at the Registro Nacional are under daily attack by fraudsters.  The director, Roger Hidalgo Zúñiga, is under suspension while a thorough study of strange property transactions takes place.

However, the organization does not feel legal matters, like transferring property fraudulently, are its problem.