Understand Your Buying Process

Purchase of Lot
Reservation Agreement Bullets

1_10% deposit in an Escrow account. RF
2_15 days time frame (For the buyer to review all documents)
3_At the15 days period the seller will contact the buyer by a written notification asking the buyer to:

A_EXECUTE THE PURCHASE AND SALES AGREEMENT, then 10% will become NON-REFUNDABLE and will be CREDITED to the second Deposit.

B_IF the buyer decides NOT TO EXECUTE THE PSA, the Seller must notify in writing the Escrow Agent of the contract termination. Upon receipt of the written notification, the ESCROW AGENT will immediately refund the complete amount of the escrowed funds to the Buyer as instructed, minus Escrow Agent FEE:$200, including the reservation deposit.

PSA Bullets

PAYMENT SCHEDULE

1st. DEPOSIT: 10% deposit in an ESCROW ACCOUNT. RF
The Buyer has 15 days to send a written notification to seller. Either to execute or not to execute the PSA.

IF YES 10% will become credited as part of the BPP and will become NR.
IF NOT, ESCROW AGENT will immediately refund escrowed funds to the Buyer as instructed minus Escrow Agent FEES and the total amount of the Reservation Deposit.

2nd. DEPOSIT: NR Upon execution of PSA (20% of the PP). The Buyer has 5 day term to wire funds to Escrow Account upon execution. The funds will be disbursed when the ground-breaking begins.
(10% of the reservation deposit has been credited at this point)

3rd. DEPOSIT: NR Individual Titles of Property for every lot in the project have been issued by the Public Registry of Costa Rica (30% of the PP). The Buyer has 5 day term to wire funds to Escrow Account upon written notification that the Individual Titles of property for every lot in the project have been issued by the Public Registry of Costa Rica.

4th. DEPOSIT: NR Electrification of the project Posada del Sol has finished (30% of the PP). The Buyer has 5 day term to wire funds to Escrow Account upon written notification that the electrification of the project Posada del Sol is finished.

5th. DEPOSIT: NR Paving of the streets of the project has concluded (10% of the PP). The Buyer has 5 day term to wire funds to Escrow Account upon written notification that paving of the streets of the project has concluded.

FINANCING:

30% UP FRONT 70% BALANCE IN A 3 MONTHS TIME PERIOD.

CLOSING

Balance of the purchase price and any additional payments (i.e., Closing Costs, Reserves, Association Dues and so forth.) must be paid at closing. This balance must be deposited in the Escrow Agent’s Account. In order for the closing to be executed it is mandatory that all legal documents pertaining to the lot are duly recorded as well as the recorded-survey map. THE SELLER will notify THE BUYER and Escrow Agent at least (30) days prior to closing to confirm the closing date. Escrow Agent will draft final closing statements for both THE BUYER and THE SELLER; they will then sign and forward said document to Escrow Agent at least two (2) days before the closing is executed in order to release these funds.

 

RF: Refundable
NR: Non-Refundable
PP: Purchase Price
BPP: Balance of Purchase Price
PSA: Purchase Sales Agreement

 

Construction of Houses
Reservation Agreement Bullets

1_10% deposit in an Escrow account. RF
2_15 days time frame (For the buyer to review all documents)
3_After the15 days period the seller will contact the buyer by written notification asking the buyer to:

A_EXECUTE THE PURCHASE AND SALES AGREEMENT, then 10% will become NON-REFUNDABLE and will be CREDITED to the Purchase Price.

B_IF buyer decides NOT TO EXECUTE THE PSA, the Seller must notify in writing the Escrow Agent of the contract termination. Upon receipt of the written notification, the ESCROW AGENT will immediately refund the complete amount of the Reservation Deposit to the Buyer as instructed, minus Escrow Agent FEES:$200.

PSA Bullets

PAYMENT SCHEDULE

1st. DEPOSIT: 10% deposit in an ESCROW ACCOUNT. RF
Buyer has 15 days to send a written notification to seller. Either to execute or not to execute the PSA.

IF YES 10% will become credited as part of the BPP and will become NR.
IF NOT, ESCROW AGENT will immediately refund the complete amount of the Reservation Deposit minus Escrow Agent FEES.

2nd. DEPOSIT: NR. Upon execution of PSA (20% of the PP) . Buyer has 5 day term to wire funds to Escrow Account upon execution. The funds will be disbursed when the ground breaking of the house finishes.
(10% of the reservation deposit has been credited at this point)

3rd. DEPOSIT: NR. Foundations are in the process of being built. (20% of the PP)
Buyer has 5 day term to wire funds to Escrow Account when the foundations are finished.

4th. DEPOSIT: NR. Once walls of unit have been built (20% of the PP)
Buyer has 5 day term to wire funds to Escrow Account when the walls are finished.

5th. DEPOSIT: NR. Roof of unit has been installed (20% of the PP)
Buyer has 5 day term to wire funds to Escrow Account when the roof is installed.

6th DEPOSIT: NR. Beginning of the interior works (10% of the PP)
Buyer has 5 day term to wire funds to Escrow Account when the interior works begin

7th DEPOSIT: BPP & any additional payment dues, i.e. (Closing costs, reserves, etc) 5% .

FINANCING:

30% UP FRONT 70% BALANCE IN A 3 MONTHS TIME PERIOD.

CLOSING

Five percent (5%) of purchase price (referred to as Holdback) shall be held in Escrow Agent’s Account after the closing is executed for (inspection/punch) list compliance. THE SELLER shall provide THE BUYER with a punch list fourteen (14) days prior to closing. Upon completion and written receipt of signed Punch list by THE BUYER with Escrow Agent shall release the five percent “Holdback” to THE SELLER. If THE BUYER does not acknowledge in writing after the fourteen (14) days, THE SELLER will assume punch list has been completed and accepted by THE BUYER. Escrow Agent will then release this five percent (5%) to THE SELLER immediately.

Balance of the purchase price and any additional payments (i.e., Closing Costs, Reserves, Association Dues and so forth.) must be paid at closing. This balance must be deposited in the Escrow Agent’s Account. In order for the closing to be executed it is mandatory that all legal documents pertaining to the condominium are duly recorded as well as the recorded-survey map. THE SELLER will notify THE BUYER and ESCROW agent at least (30) days prior to closing to confirm the closing date. Escrow Agent will draft final closing statements for both THE BUYER and THE SELLER; they will then sign and forward said document to Escrow Agent at least two (2) days before the closing is executed in order to release these funds.

 

RF: Refundable
NR: Non-Refundable
PP: Purchase Price
BPP: Balance of Purchase Price
PSA: Purchase Sales Agreement