In one of my previous blog postings, The Perils of Buying Real Estate in Costa Rica - and How to Avoid Them, I mentioned that it is important to deal with a reputable, knowledgeable person when working with someone to find real estate in Costa Rica.
In North America, when buyers work with a real estate agent, they are safeguarded by the fact that anyone claiming to be a real estate agent must have their real estate agent license hanging in a broker's office. At a minimum, when this condition is met, the buyer knows that the real estate agent has completed training and testing, and has vowed to act ethically and in their clients' best interest. A variety of governing bodies also work to enforce the real estate professional's conduct, providing for additional comfort on the client's part.
This professional organization and system in North America is in place to protect the real estate market, as well as all players involved. But what if this system was not in place?
Professional licensing is not required to sell Costa Rica real estate - meaning any Tom, Dick, or Sherry (had to put a female name in the list) could wake up one morning and decide to sell real estate there. That's a scary prospect for buyers. Even if one does not act maliciously, pure inexperience can get them and/or others into some hot water.
There are real estate agents in Costa Rica that are licensed, but there are no governing bodies to enforce their conduct. In most cases, I am confident that these licensed agents are living up to their professional commitments and ethics, though there are definitely others that use their license strictly as a marketing tool, to say that they do have one.
On the flip side, there are also many reputable unlicensed people in Costa Rica that are working in the real estate market, and are able to conduct themselves in an ethical and professional manner, as well as share a wealth of knowledge with their clients.
Whether someone dealing in real estate in Costa Rica is licensed or not, it makes little difference until some governing body can regulate and oversee the conduct of real estate professionals there. There is a national association of real estate agents, the Costa Rican Real Estate Agents Chamber, which is lobbying for mandatory licensing of real estate agents. How far away Costa Rica is from this occurrence is unknown, but reputable licensed and unlicensed real estate offices all agree that some professional organization will be beneficial.
So when you are buying real estate in Costa Rica, make sure that you carefully select the person you work with, preferably from a personal recommendation.
Tiffany Wilson is a real estate investor and an International Real Estate Consultant for Compass Properties, with offices in US and Costa Rica locations. She is passionate about Costa Rica and loves telling people all about it! She can be reached at twilson@compasscostarica.net. Check out Compass Properties website at www.dreamingofcostarica.com for more information on Costa Rica real estate opportunities.
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