Costa Rica is globally renowned for its unparalleled biodiversity. This natural richness is not only invaluable from an aesthetic and recreational perspective but also crucial for sustaining life. The Costa Rican government has implemented various policies and sanctions to protect this biodiversity from activities that could threaten it.
Real Estate Development and Environmental Preservation
Real estate development is one of the most regulated activities in Costa Rica to ensure environmental conservation. As the demand for properties increases, the country faces the challenge of balancing economic development with the preservation of its natural environment. When considering the purchase of real estate in Costa Rica, it is crucial to consider several aspects related to biodiversity conservation and regulatory limitations. These considerations can significantly influence the future of the business.
Key Considerations
- Land Use: It is essential to verify that the property intended for purchase is in an appropriate zone for the project’s development and that the land use aligns with the desired objectives.
- Existing Basic Services: In some areas, there are restrictions on well drilling or the use of alternative water sources, which can pose issues depending on the water requirements for the project.
- Protected Areas or Environmentally Fragile Areas: It is vital to check the proximity of the property to protected areas or environmentally fragile areas, such as biological reserves, national parks, and forest zones. Depending on the area, there may be significant restrictions on construction. For example, properties within the Maritime Land Zone or adjacent to it are considered part of the public domain and have specific restrictions.
- Permanent Bodies of Water and Streams: Environmental legislation establishes strict protection guidelines for bodies of water and streams, including a buffer zone around them and their vegetative cover. This applies to lakes, lagoons, estuaries, streams, creeks, and rivers.
- Hydrogeological Condition of the Subsoil: The existence of an aquifer in the property’s subsoil may impose additional restrictions on land use, building coverage, green areas, stormwater management, and wastewater treatment.
- Other Restrictions: Additionally, there may be other limitations such as prohibition of deforestation, unsuitable substrates for large constructions, and restrictions on earth movements. Therefore, legal advice before purchasing real estate is essential.
The Importance of Due Diligence
At ERPLawyers, we offer Due Diligence services, a comprehensive investigation process into the property you wish to acquire. This service aims to uncover potential hidden risks that could affect the buyer’s interests.
Elements Reviewed in Due Diligence
During this process, we review various aspects of the property, including:
- Cadastre plan
- Land use certifications
- Inventory of wells
- Identification of potential environmental contingencies
- Confirmation that the property is not affected by special laws
With this information, buyers can make informed decisions and minimize risks.
If you would like to learn more about our Due Diligence service, you can refer to our article on the subject.
At ERP Lawyers, we are committed to protecting Costa Rica’s biodiversity and providing the best legal advice for your real estate investment.
