Market appraisal is sure cure for blue sky syndrome

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Editor's Note: While this article was accurate at the time of publication, some information may now be outdated.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!

Today, many property owners seem to be drunk on blue sky.  

Blue sky is not a brand of guaro — an alcohol derived from pure sugar cane — or other intoxicating beverage, but an addiction to the recent skyrocketing prices of real estate prices.  Most are familiar with the term.  It means the intangible portion of a price above what is reasonably supported by the current market.

Those with real estate training use the term to represent the difference between the price a seller puts on their property and what the market probably will bear in price.

Mortgage money available, but foreclosure complex

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Editor's Note: While this article was accurate at the time of publication, some information may now be outdated.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!

Mortgages are becoming more and more available in the local market for expats who want to borrow money to buy property.  There is a lot of money available for financing from local financial institutions.  Private parties also have money to lend, but usually the interest rates are higher.

What most foreigners do not know about borrowing money in Costa Rica is how the foreclosure process works if one should default on a loan.  Unscrupulous private lenders, attorneys, and real estate people take advantage of the ignorance of homebuyers and, in some cases, use this knowledge to steal back properties they have sold.

Curve ball from Registro makes this man a hostage

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Editor's Note: While this article was accurate at the time of publication, some information may now be outdated.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!

In more and more cases, buying property in Costa Rica can hold an innocent property buyer hostage for years, bankrupt them and even kill them with stress and strain.

Only a few years ago, it was rare to read about property fraud in the local press.  Nowadays, it is probably one of the most important topics of the news.  Sometimes even a legally perfect property can carry hidden problems.  Costa Ricans and savvy expats can use these complications to sour even the best and honest real estate transaction.