Standing in a cow pasture overlooking the Pacific Ocean, you know you’ve found the perfect piece of property. The price is right, the location good, and you’re ready to sign on the dotted line. But wait. The property slopes. Can you safely build what you want to build there? Will environmental regulators let you build on that slope? Does the property have water and electricity hook ups? Has the municipality zoned it in any particular way? Does the seller have authority to sell it? Have all the taxes been paid over the years? What kinds of legal encumbrances does the property have on it? Is the government planning a highway that will go right through the middle of it? To answer these and many more questions, you will have to perform due diligence. What is due diligence? Basically, it is the process of carrying out background research to confirm that the property you want to buy is, indeed, as the seller represents it. Due diligence also looks into the future, to confirm, as far as possible, that there will be no significant legal or other restrictions that would block you from doing what you like with your new property (building a home, developing a gated community, converting a house to a bed and breakfast, etc.). Due diligence confirms the present and future value of your property. The amount of due diligence a retiree or anyone else need to do will vary greatly depending on the property and on what you plan to do with it. Purchasing a condominium from a well-known developer will take very little due diligence. Purchasing several hectares of farmland from a Tico family in order to build a high-density development will take a lot. A word of caution for retirees and others Whatever the case, it’s difficult to overstate the importance of thorough due diligence when buying property in the Costa Rican real estate market. Costa Rica can be an odd place, and among its many charms is its ability to lull foreign real estate buyers into carelessness. Call it the “Pura Vida Affect” – otherwise-sharp businesspeople land in Costa Rica, and because the people are so nice, or perhaps because it’s their first international adventure, they cut corners, trust too much, and get into a mess. Keep in mind that no matter how lovely the culture, large amounts of money attract all manner of scammers. Foreign buyers, especially people of retirement age, need to be extra careful, and that includes carrying out due diligence before buying. The other reason due diligence is so important in Costa Rica is less prosaic: Namely, it’s much easier to do things right the first time in Costa Rica than to go through a lawsuit later. A problem with a contract or illegal actions by an unscrupulous seller can take years to sort out through the painfully slow and fairly ineffective Costa Rican legal system. That labyrinth of paperwork and linoleum-hallwayed public buildings is best avoided in any circumstance, and especially if you’re buying a property in the country so you can get away from it all. Even worse is trying to pursue a court case from outside Costa Rica if you don’t plan to live here full time.