Inspections and Appraisals
Most buyers will have the property inspected by an experienced property inspector within the time frame that was agreed upon in the effective contract to purchase. In the rare instance that the agreement is conditional upon financing, the property will be appraised by a licensed appraiser to determine the value for the lending institution via third party. A buyer of a commercial property may also have a complete environmental audit performed and/or soil test, if required by the municipality.
The Closing Attorney
In Costa Rica, an attorney, acting as a notary, will be selected as the closing attorney. The buyer chooses the closing attorney. The attorney’s job is to examine and ensure clear title to the property. After researching the complete recorded history of your property, they will certify that 1) your title is free and clear of encumbrances (eg. mortgages, leases, or restrictions, liens) by the date of closing; and 2) all new encumbrances are duly included in the title. It is helpful if you meet with your attorney ahead of time to ensure you have all the documents and proofs that the closing attorney will be asking your attorney for.
Contingencies
A contingency is a condition that must be met before a contract becomes legally binding. We call these Due Diligence conditions. For instance, a buyer will usually include a contingency stating that their contract is binding only when there is a satisfactory home inspection report from a qualified inspector.
Before completing his or her purchase of your property, the buyer goes over every aspect of the property, as provided for by purchase agreements and any applicable addendums. These include:
- Obtaining financing and insurance;
- Reviewing all pertinent documents, such as preliminary title reports and disclosure documents; and
- Inspecting the property. The buyer has the right to determine the condition of your property by subjecting it to a wide range of inspections, such as roof, termite/pest, chimney/fireplace, property boundary survey, well, septic, pool/spa, arborist, mold, lead based paint, HVAC, etc.
Depending on the outcome of these inspections, one of two things may happen:
- Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the closing; or
- The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price).
How do you respond objectively and fairly to the buyer when a renegotiation is demanded, while acting in your best interests? This is when a professional listing agent like Flamingo Beach Realty can make a real difference in the outcome of the transaction. Having dealt with hundreds of property sales in the past, we guarantee our expertise and total commitment to every customer, no matter what their situation is.
