Condos in Costa Rica: Peace of Mind or a Big Headache?

1. What a “Condominium” Really Means in Costa Rica

In Costa Rica, a condominium is a legal property regime, not a style of building. Condominiums include apartment towers, townhome clusters, gated communities with detached homes, and large resort-style developments.

If the property is registered under the condominium regime, every owner must follow the bylaws (Reglamento de Condominio, Reglamento).

What You Actually Own (Crucial Clarification)

Every owner holds two distinct forms of ownership:

• 100% private ownership of their unit, legally called a (Finca Filial).
• A co-ownership percentage of the shared property, known as the (Finca Madre), which includes all common areas such as roads, green zones, façades, structural elements, pools, and recreational areas.

Your Finca Filial is private property. You may mortgage it, sell it, lease it, or transfer it without needing approval from other owners unless your Reglamento imposes a special condition.

Why this matters

• Your unit is entirely yours.
• Common areas are jointly owned and strictly regulated.
• Exterior elements, including façades, are legally part of the common property.

2. The Legal Foundation: The Condominium Constitution

Every condominium begins with a public deed called the Condominium Constitution, registered at the Registro Nacional. This deed establishes:

• all Fincas Filiales
• common and exclusive-use areas
• co-ownership percentages
• voting structure
• assembly rules
• the system for appointing the Administrator
• rights and obligations of owners

These core terms cannot be changed through a simple HOA vote; they require a formal legal modification and registration.

3. The Bylaws (Reglamento)

The Reglamento governs daily life and has full legal force. It regulates:

• pets
• short-term rentals (including Airbnb)
• noise and behavior rules
• parking
• architectural standards
• renovations
• use of common areas
• fines and enforcement
• assembly procedures
• the Administrator’s responsibilities

Most owner problems occur because buyers do not read the Reglamento before purchasing.

4. How Governance Works in a Costa Rican Condominium

Every condominium has four governing components, each with distinct roles.

1. The Owners’ Assembly—The Highest Authority for the Condo

The Asamblea de Condóminos is the supreme governing body. It approves:

• annual budgets
• monthly HOA fees
• special assessments
• rule changes
• major projects
• the appointment or removal of the Administrator

Voting

Voting is based on co-ownership percentage, not the number of people.
If a unit has multiple co-owners (e.g., three family members), they collectively share one vote equal to that unit’s percentage. They must designate one representative.

2. The Board—Junta Directiva

Most condominiums elect a Junta Directiva, made up of owners.

Because the Assembly meets only once per year, the Junta Directiva:

• oversees the Administrator
• reviews spending
• approves small projects
• protects the interests of the owners
• provides ongoing supervision throughout the year

Many expats choose to serve on the Board to influence financial and operational decisions.

3. The Administrator

The Administrator manages operations, not policy.

They:

• maintain common areas
• coordinate repairs
• enforce the Reglamento
• collect monthly fees
• prepare financial statements
• execute the decisions of the Assembly and the Board

Who prepares the budget?

• The Administrator drafts the annual budget.
• The Junta Directiva reviews and adjusts it.
• The Assembly approves it.

The Administrator cannot raise fees or change rules.

4. The Developer

Early in a project, the developer temporarily controls most decisions because:

• they own the majority of unsold units
• voting power is based on co-ownership percentage
• starting bylaws typically assign them administrative authority

When does control shift to owners?

Most bylaws specify that once 50%–66% of Fincas Filiales are sold and transferred, the owners elect their own Administrator and Junta Directiva and assume full governance.

5. Common Issues Expats Encounter

1. Short-Term Rentals

Many condominiums restrict or prohibit Airbnb-style rentals.

2. Pet Restrictions

Common rules include weight limits, breed restrictions, and one-pet maximums.

3. Renovation & Exterior Controls (Real Expat Example)

An expat repainted his detached home in a modern color. However, the Reglamento required all façades to follow a fixed color palette. His request for approval was denied, and he had to repaint the home again using the authorized color.

Why this happens legally

In Costa Rican condominium law, the façade is part of the common property, not private property. Changing the façade is legally considered modifying a common asset, which in many older condos requires 100% unanimous approval.

4. Parking Confusion

Parking may be titled, exclusive-use, assigned, or unassigned. This affects resale value and convenience.

5. Surprise Assessments

Monthly HOA fees should include contributions to a reserve fund for long-term capital projects, such as:

• roof repairs
• pool resurfacing
• drainage upgrades
• road maintenance
• gate and security improvements

When reserves are too small or poorly managed, the HOA issues a special assessment.

Owners should review:

• reserve levels
• past budgets
• assembly minutes

to evaluate the condominium’s financial health.

6. Quick Checklist for Expat Buyers

Before purchasing, always:

• Read the Reglamento.
• Request 2–3 years of HOA financials.
• Confirm your co-ownership percentage.
• Review the Administrator’s contract.
• Read the latest Assembly minutes.
• Inspect all common areas.
• Verify pet and rental rules.
• Ask whether sub-condominiums exist.

This simple checklist prevents most problems.

7. Daily Life for Expats in Condominiums

• Decisions are collective—Assembly participation matters.
• Unpaid fees accumulate interest and may lead to title liens.
• Rules are actively enforced under Law 7933 (attached in PDF below).
• Remote owners should use email and proxies to stay engaged.

What is a title annotation?

A title annotation is a legal notice added to your property record at the Registro Nacional. It blocks the sale or transfer of your property until the debt is resolved.

8. When Condos Are Ideal for Expats

Condos are often an excellent choice when you want:

• predictable maintenance
• shared security
• lock-and-leave convenience
• access to amenities like pools and gardens
• clear rules and structure

For part-time residents, condominium living offers real peace of mind.

9. Can a Condominium Exist Inside Another? (Yes—Very Common)

Costa Rican law allows sub-condominiums, meaning a condominium inside a larger master condominium.

Structure

• Sub-condo: its own bylaws, Administrator, fees
• Master condo: controls access, security, roads, and architectural standards

If rules conflict, master rules prevail.

Owners may pay two HOA fees.

10. What Can Owners Do If There’s a Conflict? (Law 7933 Options)

Conflicts happen. Owners have several legal tools.

1. Request an Extraordinary Assembly

Usually requires 25% owner support. The Assembly may reverse decisions or replace the Administrator.

2. File a Written Complaint With the Administrator

Creates a legal record and triggers enforcement.

3. Demand Enforcement of the Bylaws

Owners may insist the Reglamento be applied exactly as written.

4. Use Mediation

Effective for noise, parking, and neighbor disputes.

5. File Administrative Complaints

Depending on the issue:

• Municipality: construction violations
• Ministry of Health: noise or sanitation issues
• MINAE/SETENA: environmental issues

6. Civil Court (Last Resort)

Used when rights are violated or fines are illegal.

7. For Unpaid HOA Fees—Fast-Track Foreclosure

Under Law 7933:

• The Administrator may hire a CPA to certify the debt.
• This certification becomes a Título Ejecutivo Hipotecario (an executive mortgage enforcement title).
• This allows the condominium to bypass the full trial phase and proceed directly toward foreclosure auction.

This is one of Costa Rica’s fastest debt-collection mechanisms.

Conclusion: Peace of Mind or Big Headache?

Condominium living in Costa Rica offers structure, security, and predictable maintenance—if you understand how the system works. Most headaches happen only when owners don’t understand the bylaws, governance structure, or their rights during conflicts.

With proper preparation, a condominium can provide exactly the peace of mind many expats want.

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