Protecting Land and Property in Costa Rica - Squatter's and Possession Rights

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Most foreigners owning property in Costa Rica don't have to worry much about these issues, however you should be aware of them.  Historically, Costa Rica has had a bias towards people actually using the land. This stems from Colonial times, when most settlers were not “conquistadors” looking for glory and gold, but farmers looking for land.

Costa Rica's possession rights laws avoid the situation that caused peasant uprising throughout South America, when vast tracts of arable land lay unused and poor (hungry) campesinos were unable to plant even small plots for their sustenance.

In Costa Rica there are several phases of possession:

• 0-3 months – Any land that is unclaimed or has fallen into disuse may be claimed.  The person wishing to claim the land moves in and puts in or repairs fences, cleans up the underbrush and normally plants a crop – beans are good, but any crop will do.  They normally erect some type of shelter or a small house.  This is the time period that the current owner has to evict the invader.  Within the first 24-48 hours of the invasion, the land owner can bring the police directly to property and evict the squatter, no paperwork or filing is necessary.  After this point and up to the 3 month period the legitimate owner may reverse the invasion, but each day that goes by the reversal becomes more difficult. The police may require a judicial order before taking action.
• 3 months to 3 years – After three months the squatter begins acquiring rights to the property.  The longer the dispute rages, the harder it is for the owner of the property to successfully evict the squatter.  This is a murky situation, if you are involved in this type of dispute you need expert legal advice as soon as possible.
• 3 years to 10 years  - At this point is nearly impossible to evict the squatter, however they may not register the property as titled land.  They will own possession rights, which may be registered in the National Registry.  These rights may be bought and sold – or transferred through an inheritance or any type of exchange.  Foreigners may purchase possession rights too.
• 10 years and beyond – Possession rights may now be converted to property title.  Many, many campesinos have held possession rights for decades, and never converted them to full title due to lack of money.  Also they would be recognized as the owner by their neighbors and would not need the protection of a property title. Many farms in rural areas are purchased by corporations and foreigners, paying the value to the farmer for these possession rights.  The investor will enlist the cooperation of the farmer in converting the possession rights to titled land.  This can be immediately profitable to the investor, who may then sell the titled land at its full value - particularly when it is located in tourism areas that are developing.

Protecting Your Property from Squatters

The vast majority of property owners in Costa Rica will not face the possession rights issue.  However foreign property owners who are absentee owners, particularly those who own property in rural areas, are at risk.  There are a number of ways to protect your property.

First, be very aware of the maintenance of the property.  A property that is well kept will not attract the attention of possible squatters as readily.  Secondly, the first three month period is very important.  Ideally you should have someone who can inspect the property on weekly basis, or monthly basis.  3 months is the outside limit for taking corrective action that can be resolved relatively quickly.  Beyond the 3 month mark things get much harder.  One option for protection is to rent land for a nominal value to a neighbor who will utilize it for crops or live stock.  They will not allow anyone else to usurp the land for other uses, and if your neighbor is trustworthy they will not usurp it themselves.  However the rental contract and receipts provide a solid means of protection from this possibility.

In addition to protecting your property from physical squatters, you should protect it from virtual squatters.  Please see this article on Registry Fraud for methods and details. The Private Property Registry protects you from these dangers, it would also alert you to any attempt that is more direct than squatting on the rights to your property. Click here, How PPR Works ,  to find out how the service works.