A real estate transaction doesn’t start with a property visit nor end with a signature. Behind every successful deal, there’s a technical and legal process that ensures everything is in order: due diligence.
If you’re a real estate broker or agent, you know that helping your client means more than just showing properties. It also means anticipating risks, protecting the interests of the buyer or tenant, and connecting them with the right professionals.
Why does this directly affect you as a broker?
Because you’re the intermediary in high-value transactions. You’re responsible for ensuring that both the buyer and the seller (or the tenant and the landlord) are complying with current legal regulations. It’s especially important to verify the legal status and ownership of the property involved.
A transaction that doesn’t pass due diligence can lead to:
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A failed investment for your client,
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A lost deal,
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And a commission that never arrives.
What exactly is due diligence?
It’s the legal process through which the status of a property is thoroughly examined before closing a transaction. It includes reviewing:
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Property title,
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Registered or judicial liens,
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Cadastral maps,
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Property history,
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And any other elements that may pose a risk to the buyer.
This not only protects your client but also provides you — as a broker — with a solid foundation to move confidently toward closing.
And what’s your role?
While due diligence must be carried out by a legal professional, your responsibility as a broker is to facilitate the process: connecting your client with a legal team that can guide them properly and assisting with the required documentation.
Keep in mind that, under Article 1045 of the Costa Rican Civil Code, a broker is liable for their mediation activity if negligence, fault, or misconduct can be attributed to them. Incomplete or missing due diligence can result in legal consequences for you.
At ERP Lawyers, we have attorneys specialized in real estate law who manage the due diligence process from start to finish. We handle the review, verification, and documentation of everything needed so that you and your client can move forward with confidence.
If you want to operate with legal security and peace of mind, we can be your legal ally!
We support you throughout the entire process with a preventive and professional approach.
