What is a public deed and when is it required in Costa Rica?

What is a public deed?

A public deed is the document authorized by a Public Notary within their protocol. It grants notarial faith to the act the parties enter into, to their identities, to the date, and to its content — all under the public-faith power that the Costa Rican State delegates to notaries.

Unlike a private contract, a public deed is a public instrument with reinforced evidentiary effects. Toward third parties and before the National Registry, the deed is the formal path for an act to produce all its legal effects.

When is a public deed mandatory?

Costa Rican law requires a public deed for certain acts. Without that form requirement, the act may be void or, at the very least, cannot be registered in the corresponding public registries.

• Purchase and sale of real estate and real rights over real estate
• Creation, amendment and cancellation of mortgages
• Formation, amendment and dissolution of commercial companies
• Matrimonial agreements
• Open wills granted before a notary
• "Generalísimo" powers of attorney and, in many cases, general powers
• Real estate donations
• Trusts (fideicomisos)

Public deed vs. private document

A private document is valid between the parties when their will and minimum legal requirements are evident. However, it does not allow real rights to be registered, nor does it produce the same effects toward third parties as a public deed.

The deed also guarantees that a Notary qualified the act: verified capacity, warned of legal effects, and left an authentic record of what was declared. That preventive function is what protects the parties in the long run.

Documents commonly required

Each act has its own requirements. The following are the most common ones for a real estate purchase deed, as an example:

• Valid IDs of buyers and sellers
• Cadastral plan of the property
• National Registry ownership certificate
• Proof that municipal and land taxes are current
• Valid corporate certifications, when a party is a company
• Matrimonial agreements or waiver of marital assets, when applicable

How much does it cost and how long does it take?

Notarial fees in Costa Rica are regulated by tariff. The total cost of a deed includes fees, stamps, registry duties and, depending on the case, taxes such as real estate transfer tax.

Once signed and filed with the National Registry, qualification and registration usually take between 15 and 30 business days, barring defects or pending liens on the property.