[BUYING AND SELLING REAL ESTATE IN COSTA RICA]
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❖ Term of the Concession Concessions may be granted for a minimum term of ten years and a maximum of fifty. These terms can be extended for equal periods as those granted as long as the beneficiary of the concession has complied with the obligations stated in the specific concession contract and the laws and regulations that govern a project. ❖ Procedure to Obtain a Grant, Purchase, Sell or Transfer the Rights to a Concession To obtain a grant or concession over lands currently owned by the Costa Rican Tourism Board, interested parties must participate in a public bid, which a technical office reporting to the Board of Directors will review. This review and recommendations will be presented to the Board of Directors of the Tourism Institute, who will have the final word on the approval or denial of the petition. The approval by the Board of Directors is also required when a request is made to transfer totally or partially, establish a lien, or transfer concession rights into a trust. Concessions already granted to third-party applicants may be validly purchased by new applicants and transferred, either totally or partially, by those legally empowered to do so. The transfer of the rights to a concession must be approved by the Board of Directors of the Costa Rican Tourism Institute and those interested in acquiring the rights to a concession must comply with the regulations stated for the original concession as well as comply with all the applicable requirements. The transfer of rights to a concession is made through a public deed in which the representative of the Tourism Board and the purchaser and seller are present to grant the transfer. This deed is ultimately registered in the Project’s Concession Registry, which will be explained in full in the following section.
❖ Registration of a Concession As stated above, once the Board of Directors has approved the concession granting, the interested party must register the concession in the Project’s Concession Registry. This is a registry that is part of the Concession Registry, an office under the jurisdiction of the Costa Rican Public Registry. In addition to registering new concessions, the Project’s Concession Registry will also register mortgage liens, leases, and transfers of concession rights to trusts. ❖ Financing the Purchase and Development of a Concession By creating the Tourism Development Project, all the Costa Rican banking system banks were authorized to grant loans to the owners of concession rights in the Project, accepting as collateral the conceded land itself and any improvements or constructions made upon it. This is an incentive for Financial Institutions to provide loans to develop the project since they have the certainty of having sufficient and authorized collateral and they can also count on the legal rights granted to them by the registration of the lien in the Project’s Concession Registry, which is a public record registry.
ILN Real Estate Group – Buying and Selling Real Estate Series
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