Allykat's Tales
Buying overseas property in Central America (or other emerging markets for that matter) can be an emotional roller coaster. You stand in front of a gorgeous ocean view, wiggling your feet in the sand and realize that, “Yes” you can afford this. You start imagining the lifestyle you could lead and how much fun you’d have if you owned property here. Before too long, all logic has gone out of the window and you’re operating on pure emotion.
Stop. I’m afraid we’re going to have to bring you down to earth and talk about mundane things like legal title and infrastructure.
It’s surprising that buyers need to be reminded to hire an independent attorney to conduct a title search, investigate the title history and represent them at the closing. If you choose not to, it could become costly in the long run.
Some title chains are complex and convoluted and you’ll need answers to questions like these before the closing: Is the title a “Right of Possession” title, is it a ‘Supplemental Title” or is it Fee simple? Are their any liens or encumbrances on the property? Is the seller the registered owner of the property? And remember if you’re buying a in property in Nicaragua, Panama or Costa Rica your closing documents will be in Spanish.
The feel of a place, it’s views and how pretty the trees looks at sunset, may all factor into your decision-making. But so should boring questions on infrastructure. Is the property connected to a central waste water system? If not how much would it cost to build a septic system. And what about water supply? Do you need to dig a well? Is electricity already at the property edge?
And how about the road access? If access is unpaved and bumpy, the person interested in selling property may tell you that the road is ‘about to be improved.’ Take that with a pinch of salt and also ask the follow up questions about whose responsibility it is to maintain the road after it has been improved.
Sorry to be a stickler for detail. But as we all know, that’s where the devil lies.
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