Land Disputes in Costa Rica: How to Protect Your Property From Title Fraud and Real Estate Scams
By Gonzalo Gutiérrez, Corporate & Real Estate Law • Updated: July 7, 2026 • 11 min read • AG Legal Costa Rica
Land disputes in Costa Rica usually come from one of four sources: unclear boundaries, competing title claims, squatters (precaristas), or outright fraud by a seller or unlicensed agent. Most property scams targeting foreigners follow a predictable pattern — a forged or defective title, an undisclosed lien, or a maritime-zone concession sold as if it were fee-simple land. The single best protection is independent legal due diligence before you sign, and knowing the right dispute-resolution path (conciliation, arbitration, or litigation) if a conflict already exists.
- Why land disputes and scams happen in Costa Rica
- The 4 most common types of land disputes
- The most common property scams targeting foreigners
- Red flags checklist before you buy
- Due diligence steps that actually prevent fraud
- How to resolve a land dispute: conciliation, arbitration, or court
- What to do if you already fell victim to a scam
- Frequently asked questions
Why Land Disputes and Property Scams Happen in Costa Rica
Costa Rica gives foreigners the same property rights as citizens, which is precisely why it attracts so many international buyers — and why it attracts fraud. Three structural features of the Costa Rican system create the openings that disputes and scams exploit:
- A dual land system. Some land is titled (fee-simple, registered at the Registro Nacional) and some is possession land (untitled, based on years of occupation under the Ley de Información Posesoria). The line between the two is often unclear on the ground, even when it looks clean on paper.
- The Maritime Zone Law (Law 6043). Coastal land within 200 meters of the high-tide line is never privately owned outright; it is concession land. Sellers routinely blur this distinction to close a sale.
- Language and distance. Foreign buyers often rely entirely on a bilingual agent or a seller’s own notary, without independent Costa Rican counsel reviewing the registry themselves.
The 4 Most Common Types of Land Disputes
| Dispute type | What typically happens |
|---|---|
| Boundary disputes | The registered survey plan (plano catastrado) doesn’t match physical markers on the ground, or a neighbor has built past the legal line. |
| Title/ownership conflicts | Two parties both claim to be the legitimate owner, often after an inheritance, a defective prior sale, or an unresolved company transfer. |
| Squatters (precaristas) | Someone occupies vacant land and, under Costa Rica’s outdated precario framework, may eventually claim possession rights if the true owner doesn’t act. |
| Maritime/concession disputes | Conflicts over who holds a valid municipal concession in the 150-meter restricted zone, or whether a structure was built inside the public 50-meter strip. |
The Most Common Property Scams Targeting Foreign Buyers
These are the patterns AG Legal sees most often in real transactions involving foreign buyers:
- Selling concession land as titled property. The buyer believes they own fee-simple land, when in fact the seller only ever held a renewable municipal concession — or worse, no valid concession at all.
- Undisclosed liens or mortgages. The title looks clean at a glance, but a mortgage, judgment, or unpaid property tax is recorded against the finca and transfers with it.
- Using a “notario” who represents the seller only. In Costa Rica the notary drafts and registers the deed, but that doesn’t mean they protect the buyer’s interests — that’s the buyer’s own attorney’s job.
- Misrepresented lot size or boundaries. The plano catastrado doesn’t match what’s shown to the buyer on a site visit.
- Fake powers of attorney. Someone signs on behalf of an absent owner using a power of attorney that is expired, forged, or never properly registered.
- Pressure to wire funds before registry verification. Classic pattern: urgency, a “limited-time” discount, and a request to send funds before an independent title search is complete.
Yes. Costa Rica has one of the strongest legal frameworks for foreign property ownership in Latin America, and the vast majority of transactions close without incident. The risk isn’t the legal system — it’s skipping independent verification of that system.
Red Flags Checklist Before You Buy
- The seller or agent discourages you from hiring your own independent attorney.
- You’re asked to wire a deposit before receiving a certificación literal from the Registro Nacional.
- The property is near the coast and no one can clearly explain whether it’s titled or concession land.
- The person signing the deed isn’t the same name shown as the registered owner, and there’s a power of attorney involved.
- The listed lot size doesn’t match the plano catastrado.
- There’s unusual urgency (“another buyer is ready to close tomorrow”).
- The deal is entirely off-market and word-of-mouth, with no paper trail.
Before you sign anything, have an independent attorney verify the title, the survey, and the seller’s identity.
Get a Pre-Purchase Legal ReviewDue Diligence Steps That Actually Prevent Fraud
- Pull the folio real / certificación literal from the Registro Nacional using the property’s finca number — this shows the current owner, liens, mortgages, easements, and annotations.
- Confirm the plano catastrado at the Catastro Nacional matches both the registry description and the physical boundaries on-site.
- Verify municipal status — unpaid property taxes, zoning, and (for coastal parcels) maritime-zone classification.
- Confirm the identity of the signing party against the registered owner, and independently validate any power of attorney.
- Review at least 10 years of ownership history, with extra scrutiny if there were donations, inheritances, company transfers, or a recent fast resale.
- Use escrow for the purchase funds, released only once the deed is registered — never wire the full amount directly to a seller before closing.
- Hire your own attorney, separate from the seller’s notary, to review every document before you sign.
How to Resolve a Land Dispute: Conciliation, Arbitration, or Court
If a dispute already exists, litigation in Costa Rica’s civil courts is available but can take years to resolve. Faster, lower-cost alternatives exist and are often the better first step:
- Conciliation. A neutral, faster process where both parties negotiate a binding resolution with the help of a certified conciliation center — often resolving boundary, contract, or payment disputes in weeks rather than years.
- Arbitration. Many real estate contracts include an arbitration clause, allowing disputes to be resolved outside the court system by a neutral arbitrator.
- Civil litigation. Reserved for cases involving fraud, criminal conduct, or where the other party won’t participate in conciliation or arbitration in good faith.
The AG Legal group operates RAC Escalante, a certified conciliation center, which can help resolve property and contract disputes without going through years of court proceedings.
What to Do If You Already Fell Victim to a Scam
- Do not sign anything further or send additional funds until an attorney reviews the situation.
- Request a fresh certificación literal to document the current registered status of the property.
- File a criminal complaint with the OIJ (Judicial Investigation Agency) if fraud, forgery, or identity misuse is involved.
- Pursue civil remedies to recover funds or nullify the transaction, in parallel with any criminal complaint.
- Understand that recovery is not guaranteed and resolution can take time — which is exactly why prevention through due diligence matters more than after-the-fact recovery.
Related Reading on Costa Rica Corporate & Real Estate Law
Why many foreign buyers hold property through a Costa Rican corporation.
AGBPO ServicesCorporate administration and compliance support for property-holding entities.
RAC Escalante Conciliation CenterResolve property and contract disputes faster than the court system.
Frequently Asked Questions
Can foreigners really own land in Costa Rica?
Yes. Foreigners have the same property rights as Costa Rican citizens for titled land, with the main exception being the maritime zone, where only concessions (not fee-simple title) are available.
What’s the most common Costa Rica property scam?
Selling maritime-zone concession land as if it were titled fee-simple property, along with undisclosed liens and forged powers of attorney.
How long does a land dispute take to resolve in court?
Civil litigation can take several years. Conciliation or arbitration, when available, typically resolves disputes in weeks to a few months.
Do I need a Costa Rican attorney if I already have a notary?
Yes. The notary registers the transaction but does not represent your interests as the buyer. You need your own independent legal counsel.
Can squatters legally take my land in Costa Rica?
Under Costa Rica’s precario framework, long-term uncontested occupation can create possession claims. Regular inspection of vacant land and prompt legal action reduce this risk significantly.
Facing a Land Dispute or Considering a Property Purchase in Costa Rica?
AG Legal provides independent due diligence, title verification, and dispute resolution — through litigation, arbitration, or our own conciliation center — for property buyers and owners across Costa Rica.
Contact AG Legal TodayAbout the Author: Gonzalo Gutiérrez
Attorney specializing in corporate and real estate law in Costa Rica, with experience in title verification, corporate property structures, and dispute resolution for foreign investors.
View full profile · LinkedInThis article is for informational purposes only and does not constitute individualized legal advice. Always confirm your specific situation with a licensed Costa Rican attorney before signing any property agreement.