D-E-F

D

Deed – A written document that has been properly signed and delivered to the appropriate person that communicates title to a property. Escritura or título de propiedad

Deposit – Money paid in good faith for the completion of a contract. If the person who pays the deposit fails to live up to the contract forfeits the money. Depósito or señal

Distressed Sale - Property that is under a foreclosure order or is advertised for sale by its mortgagee. Distressed property usually fetches a price that is much below its market value. Venta de liquidación

Due Diligence – A study preceding the purchase of a house or property on its financial, physical, legal and social attributes. Diligencia debida

E

Earnest Money – Money deposited by a buyer to the seller as evidence of good faith to the contract. Arras or anticipo

Easement – the right or privilege someone has over another person’s land. This could include the right of a government to build a road through someone’s land, or lay utility lines over or beneath the land. Servidumbre

Elevation drawing – A drawing of a property from the front, back and sides to show how the building will look from a topographical standpoint.

Encumbrance – A right or claim to land that effects it value, such as a mortgage, unpaid taxes, leases and others. Gravamen

Environmental Impact Study – A study carried out by Costa Rica’s Ministry of Environment and Energy’s SETENA department, which will determine whether or not the land is suitable for the master plan of the development. Estudio de impacto ambiental

Escrow – An account where deposits or earnest money can be placed for safekeeping until certain acts are fulfilled. This type of account is often used when a person invests in a pre-construction condominium. Depósito

Exclusive listing – Giving just one brokerage the right to sell a property. The owner can also sell the property. Contrato exclusivo para vender un inmueble

Expropriation – The act of a government legally taking property ownership from a private owner for public use. Expropriación

F

Fee simple – Absolute ownership of a property, giving that person control over disposition beyond existing laws. Dominio simple

Fixed-rate mortgage – a loan from a bank to buy a property that has a fixed rate of interest over the period of the loan. Hipoteca de tasa de interés fija

Flipping – the purchase and subsequently immediate resale of a property for a profit. Comprar una propiedad y revenderla inmediatamente después