First, we should talk about real estate brokers in Costa Rica. Let’s face it, whether fair or not, real estate agents—here and elsewhere—enjoy a status only slightly above that of used car salesmen. That said, you can find extremely competent, professional, honest real estate agents in Costa Rica if you know how to look for them.

One of the best ways to find an honest, professional real estate broker, of course, is to get recommendations from friends and colleagues. And, since no broker has access to comprehensive information about all the properties for sale in a given area (remember, there is no MLS in Costa Rica), you’ll probably want to work with more than one broker; you get to check out more properties that way, and you will also be able to compare information handed out by the various brokers. In the reference guide at the back of this book, there is a list of brokers. That list is not comprehensive—and a broker’s appearance on the list does not necessarily mean that we recommend him or her—but you can use it as a starting point. Since most brokers have Web sites—and since many work with firms that are affiliated with North American companies—you can even start your search from home. And, more and more, larger brokerage firms put on sales seminars in North America and Europe, where you can collect information before arriving to the country. (At many of these seminars, realtors will attempt to sell you property on site, even before you have visited the country. Needless to say, you should never buy property before you have seen it and before your lawyer has performed the due diligence process.)

A good broker, indeed any professional salesperson, must have good listening skills. If you meet with a broker and describe exactly what kind of property you are looking for, then find that the broker proceeds to show you five properties that don’t match your description at all, it’s time to move on. Here is a list of suggested questions that you can use to assess a potential broker:

1. Are you a Costa Rica citizen or a legal resident? If the latter, how long have you lived in the country?
2. What region of the country do you cover? (the narrower, the better).
3. How long have you lived in the area you cover? Do you own a home there?
4. How long have you been a broker? Did you work as a broker before you moved to Costa Rica?
5. What commission do you charge? (5% is common).
6. Are you affiliated with a brokerage firm? Which one?
7. Do you have exclusive listings? If so, can you also show me houses listed by other realtors?

Bad brokers come in three flavors: the incompetent, the dishonest, and, most commonly, those who are both incompetent and dishonest. To make matters worse, some brokers are working here illegally, either because they haven’t established legal residency and therefore aren’t allowed to work or because their company has not been legally incorporated. Incompetent, dishonest realtors are all attracted by the lure of making a quick buck. And, if they are here illegally and have no investment in the country or family ties here, then there is nothing to prevent them from skipping town after having committed a malfeasance.

The most common trick of the trade—unethical but not illegal—is to sell property at a higher price than the asking price and to pocket the difference. Another common misdeed is to claim something about the property that isn’t true (e.g., that it has access to water) or to conceal some problem with the property (e.g., problems with title). Perhaps the most common fraud is when someone poses as a property owner (or as an agent of the owner) and sells land that doesn’t belong to the putative “owner.” Again, you can avoid all these problems by relying on common sense, acting prudently, and relying on the services of a lawyer who specializes in property law.

Since the real estate industry is virtually unregulated—business and contract laws do apply to real estate deals as well—you might find that realtors are especially zealous and wary when it comes to ensuring that they receive their commissions. After all, if the seller refuses to pay the commission, the broker doesn’t have a regulatory body to back him up and his only recourse would be to file a law suit. So, you’ll need to understand the broker’s position, and work with all parties involved to allay any concerns the broker might have about not getting paid.