TITLE INSURANCE

Title Insurance is insurance against defects in title to real property, available in Costa Rica. It is meant to protect an owner's financial interest in property against loss due to title defects, liens or other matters of public record. It will defend against a lawsuit attacking the title, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.

Before you purchase your property, the property may have gone through several ownership changes or there are documents lacking proof of the Seller’s ownership. There may be a weak link at any point in that chain that could emerge to cause trouble. For example, someone along the way may have forged a signature in transferring title. Or there may be unpaid real estate taxes or other liens against the property. Title insurance covers the insured party for any claims and legal fees that arise out of such problems.

The purchase of a property is said to be one of the most stressful things a person will ever do. With so many different aspects to worry about, especially when investing in a foreign country and having to deal with a foreign language. The purchase of title insurance can end up saving you thousands of dollars and can prevent potential problems in the future.

In Costa Rica, it is not required to have title insurance when purchasing a property since the properties are usually purchase by foreigners in cash. However, title insurance guarantees that no one else can claim your property and we recommend that you purchase it for peace of mind. It also provides the peace of mind that you will not incur unexpected debts from your new property. Even if you have owned your property for years, unexpected problems can arise that may put your ownership in jeopardy. The title insurance policy means that you can be reassured regarding possible problems with your property.

The title insurance company that we recommend and that you may be familiar with is Stewart Title-Costa Rica. You may contact them at:

Stewart Title – Costa Rica
www.stewarttitlelatinamerica.com – Costa Rica
customerservice@stewartcr.com
Phone: (506) 258-5600
In Costa Rica: 800-STEWART

Pacific Tides Realty is not in the position to render legal advice. Please be advised that the information provided to you is provided to the consumer to help understand the option to purchase title insurance in Costa Rica. These laws are subject to change and therefore you should always consult a local attorney or local title company to verify that this information is correct.