Let The Buyer Beware
Buying a new house in Costa Rica can convert from a dream to a true nightmare.

There are regulations in place that oversee the various steps in developing a lot and constructing a house on it.  Many builders complain that the process slows them down.

A builder has to go through a series of steps that means the filing of paperwork before building can begin, like getting an evaluation of the land, obtaining construction permits that include permits to install water and electricity and then have  it registered in the Registro de Propiedad.

However, builders themselves say that all the regulations and paperwork is not enough.

Randall Murillo, of the Cámara de la Construcción (Construction Chamber) explains that once a builder has all the "paperwork" in hand, no one comes to inspect the actual construction and some builders then do what they want.

To bring the point home, Murillo says that of the 18 complaints registered so far this year with the Oficina de Consumidor, all had their paperwork in order. The complaints come after the construction is complete, because during the construction process there is no government inspection and buyers are not in a position to inspect the progress of the work.

Guillermo Bonilla of the Fomento Urbano company says that a buyer should make a complete inspection of the house before accepting the keys.

Buyers should first check to make sure that the engineer and architects who work for the builder are registered with the Colegio de Ingenieros y Arquitectos. If they are, one should ask if there any complaints registered against that person.

Bonilla suggests that before signing a contract for a new house, the buyer should take these four important steps:

- one, visit other houses under construction by the builder you are buying from

- two, visit other houses built by the builder with at least two years of age

- three, make sure you get a written guarantee

- and, four, if you are buying an un-built house, ask for the engineer or architect in charge of the project for a written weekly progress report.

A new house that is being financed by a local bank offers a little more protection for the buyer since the builder has to make a final report to the bank or finance company that the house is complete and provide a written guarantee before they can get their final payment.

The Comisión de Protección al Consumidor is the institution to make any complaints. The institution is there to protect the buyers from being taken advantage by unscrupulous builders, like in the latest case where the builder Ecsa Costa Rica S.A. was required to pay a buyer some ¢2 million colones (us$4.200) to a buyer for defaults in construction.