Lack of Regulations Governing Real Estate Business in Costa Rica

So what does the lack of regulations mean for you, the home buyer or seller? Although there are no regulations specifically geared toward defining how the real estate business should be practiced and although there are no regulations that restrict who can work as a real estate broker, this does not mean that Costa Rican law leaves you entirely unprotected. Remember, the entire body of law that governs general business practices—along with laws that protect the consumer against fraud and laws that regulate contracts—also serve to protect you as you engage in real estate dealings.

Even so, and with good reason, the real estate industry in Costa Rica would benefit greatly from the creation of a government institution that regulates the real estate business. Honest, professional brokers would welcome such a change. A law requiring brokers to obtain a real estate license, for example, would help reduce the number of shady, unprofessional brokers, who, unfortunately, tarnish the image of the entire profession. And, as a second example, a law imposing an upper limit on broker commissions would help ensure a less entangled negotiation process between buyer and seller.

Two associations for professional realtors are pushing for regulations. Both the CCCBR (Costa Rica Real Estate Brokers Board/Cámara Costarricense de Corredores de Bienes Raíces) and GAR (Costa Rica Global Association of Realtors) are working simultaneously to lobby for regulation and, in the meantime, to promulgate ethical guidelines and practices for their members. In the words of Cynthia Durán, president of GAR:

“We would like to create a better environment for this industry, where sellers and buyers can work in an ethical atmosphere with the support of a professional association, which can guide and educate both sides. We all know [establishing a regulating body] is a long and hard process, and I am willing to invest the time [to achieve this].”

You can find out more about the services these associations offer their members—along with information about their members—on their respective Web sites, listed in Chapter 18.