OJOS DE LA TIGRA CONDOMINIUM
LEGAL STRUCTURE OVERVIEW
CURRENT LEGAL STATUS OF THE ESTATES
The Corporation Mens Sana, S.A. is duly registered in Costa Rica under volume 550, consecutive 1, entry 15419 of the Costa Rican National Record Office. In 2005, Mens Sana, S. A. bought raw land in Puntarenas. Since acquisition of the land, Mens Sana, S.A. developed the property into several Farm Estates, providing each of the parcels with physical features such as roads, water services, electrical lines, etc; but also with the needed legal structure for each Farm Estate to be considered an independent property. Due to the size of the Estates and in order to be able to keep the internal roads private, the Development has been zoned as agricultural parcels. It is not a requirement to cultivate the land. It may very well be kept as non-cultivated land with one or more constructions; as long as the total construction size does not exceed ten percent (10%) of the total land area .
The Farm Estates are sold to upscale markets willing not only to make a profitable investment in real estate but also to enter into a commitment to create and develop an environmentally sound and aesthetically uniform community. Due to this aim, buyers that purchase land are required to build through the Developer’s builder and be committed to a “Covenants and Restrictions Contract”, to be signed by all neighbors in order to guarantee a well kept, peaceful and friendly environment.
SALES AND TITLE TRANSFER PROCEDURES
As registered property, each Estate has its own title. This title will be transferred to the new owner’s name or to the corporation they set up for this specific purpose (most advisable to reduce personal liability). The usual procedure is as follows:
The buyer selects an available Farm Estate to purchase. A preliminary sales document is signed in order to reserve the given Estate until the due diligence and fund coordination is done by buyer. The Developer has appointed the Law Firm of Interlex Bufete Echeverria to execute a Title Search, and legal verifications as well as the final Title Transfers. Interlex Bufete Echeverria is independent from the Developer but this is a project that implies a unified vision for covenants and restrictions, as well as standard legal status for all of the properties. Interlex Bufete Echeverria will execute all Title Closings.
The Developer pays fifty percent (50%) of the Closing Cost and the buyer pays the other fifty percent (50%) of Closing Cost. Buyer may seek separate legal counsel for Closing. In this case the buyer is responsible for one hundred percent (100%) of fees incurred for separate legal counsel as well as 50% of Closing Cost. Feel free to contact Interlex Bufete Echeverria for consultations and or references.
The Developer holds a Land America Commitment as proof of ownership for the entirety of the Project’s land. Interlex Bufete Echeverria assists if the individual buyer wants to obtain Title Guarantee from Land America for their individual Estate.
Once needed verifications and due diligence are completed, the legal advisors will notify the buyer of the status and feasibility of the proposed purchase. Any lien or legal discrepancy that may affect the land will be reported to the buyer. If the buyer decides to continue with the purchase, buyer will indicate such in writing along with a date on when the funds will be available. At the same time the Law Firm Interlex Bufete Echeverria will contact the buyer in order to proceed with the purchase of a new duly registered Costa Rican Corporation to hold the Estate Title. Funds can be wired to Land America Escrow (if title guarantee for the lot is bought by the buyer) or Interlex Bufete Echeverrias Escrow. Funds will be released to the seller once all the necessary paperwork and title transfer are signed in agreement with the Costa Rican Law.
After signatures and payments are completed, the Law Firm will take care of the registration and taxes.
Approximately within a month and a half the Costa Rican Record Office will finish the transfer formalization. Buyer will be informed by Interlex Bufete Echeverria and all legal documents are sent to the buyer.