NATIONAL REGISTRY
By ALEX THOMPSON

Hello, Readers! A lot of times the Registration system in Costa Rica may become confusing for some nationalities.

Costa Rica has centralized the registration of certain assets such as Property (Private property and maritime zone), Vehicles (Cars, trucks, boats, etc), and Intellectual Property (Commercial names and trademarks), as well as incorporation, in a Government institution called the “National Registry”. This institution follows certain principles and precepts assuring the public and legal certainty of the information to third parties.

Therefore any private individual, a creditor, a financial institution, and almost anyone may study the assets of a person or a company, trusting that the registral information reflects the truth. Therefore, when someone is interested on a registral asset the study may include the general information and characteristics, as well as, eventual liens, mortgages, pending annotations or judicial procedures. Let’s review the system of registration through an example.

If you’re interested on purchasing a piece of property, you must follow these steps: Hire an Attorney at Law and Notary Public. Hopefully one who speaks your language and explains clearly how the procedure does work.

This professional shall investigate the actual estate of the asset and provide the information relating to its general characteristics (location, area, borders, and Catastrated plans) as well as liens, mortgages, and pending annotations. It’s critical to verify that the Seller has the right to sell or the proper powers of representation to subscribe the sale. You may call this step your basic “due diligence”.

The Attorney should provide an accurate report of expenses, including attorney’s fees, taxes, and transfer tax in order to calculate the total cost of transfer and registration.

Once the due diligence has proven the asset worthy of the purchase and the Attorney has advised you to proceed, the proper documents have to be drawn with all the legalities and formalities established by law. These documents are subscribed in the “Protocolo” which is the Notary’s Book of Entries, duly signed by the parties involved or their representatives.

Submission of the documents in the National Registry: The Attorney is obligated to issue a Testimony of the act, followed by a presentation and registration of the document. This professional has to present the document with all the requirements and taxes paid in full. Some attorneys have the terrible costume to present the document with partial payment of the taxes, so, after spending the money given by the client, make up stories to elevate the costs and proceed with the registration or basically delay the process.

Therefore, my advice is: From the beginning ask for a total report of expenses and, if necessary, force the Attorney to give you a copy of the presentation in the National Registry. In defense of the attorneys, the Registration stage may encounter some problems in need of correction. For example, typing errors or substance mistakes.

The Notary Public has the ability to correct those mistakes, and sometimes with the necessary participation of the involved parties. However, even though a document needs the participation of the Attorney and the clients to be corrected, under normal circumstances, this stage should not last months. It’s difficult to predict the exact time, but if you have not heard from professional in charge and has passed months since the presentation of the document, something is wrong.

When the registral officer studies and approves the act, then registration of the asset is being performed in your name. You may verify the registration through the original document (once registered must be handed to the client), or by a certificate issued by the Attorney or the National Registry.

A few hints: Call your Attorney to verify the presentation of the document and periodically ask the status of your document. I recommend once every three weeks after signature of the document. Do not get angry with delays that are not the Attorney’s fault. Costa Rica is a very burocratic country and a lot of times, even we, Attorneys, have to be really patient with the system. It does not hurt to choose the professional who has capability to present the documents and register them fast. If you hire an Attorney who goes only once month to the National Registry and does not have the capability of assistants or messengers, well, the registration may be delayed more than the usual. At your service.