Escrow in Costa Rica Real Estate

What It Is, Why It Matters, and How We Help You Get It Right the First Time

Buying a home in Costa Rica feels exhilarating—until your inbox fills with requests for IDs, bank statements, and explanations of where your money comes from. That’s escrow. It can feel invasive (every agent in our office agrees it’s the most challenging step), but there’s a good reason: it protects you and keeps the transaction compliant with Costa Rica’s strict anti–money laundering (AML) rules.

At Osa Tropical Properties (OTP), we can’t complete your escrow forms or send your wire for you—but we can prepare you so approval is smooth and on schedule.

What is escrow?

Escrow is a neutral third party that holds and disburses funds according to the purchase contract and written instructions. In Costa Rica, licensed escrow providers follow robust KYC/AML checks—hence the detailed documentation. Their job is simple: keep your money safe and release it only when the conditions of your deal are met.

Why it’s important in Costa Rica

• Safety of funds: Your money is held in a regulated account and released only when all conditions are satisfied.
  
  
• Compliance: Escrow providers must verify identity and the lawful origin of funds (for locals and foreigners alike).
  
  
• Clean paper trail: The audit trail helps your attorney/notary register the deed and ensures correct disbursements and taxes.
  
  

How escrow fits into your closing (step-by-step)

1. Offer accepted → open escrow. You sign the escrow agreement and receive KYC instructions.
   
   
2. KYC review. You submit ID and source-of-funds docs (see checklists below). Expect follow-ups—this is normal.
   
   
3. Due diligence (parallel). Your attorney/notary investigates title, liens, surveys, HOA/condo, utilities, corporate authority (if applicable).
   
   
4. Funding escrow. Once approved, you wire funds from the same account/name that escrow approved.
   
   
5. Closing day. You and the seller sign the deed before a Costa Rican notary public (who is also an attorney here).
   
   
6. Disbursement. Escrow releases funds as instructed (seller, taxes/fees, payoffs).
   
   
7. Registration. Your notary records the deed in the Public Registry.
   
   

Escrow vs. your attorney/notary (who does what?)

Escrow company (neutral):

• Holds/disburses funds per written instructions
  
  
• Performs KYC/AML (IDs, proof of funds/source)
  
  
• Maintains the audit trail for wires and payouts
  
  

Attorney/Notary (your legal representative):

• Runs full legal due diligence (title, liens/easements, surveys, HOA/condo, corporate authority)
  
  
• Drafts and executes the transfer deed
  
  
• Files and records the deed at the Public Registry
  
  
• Advises and negotiates terms in your best interest
  
  

Why escrow feels “invasive” (and why that’s OK)

Costa Rica strictly enforces AML laws. Escrow officers must verify identity and the lawful origin of funds—sometimes down to a specific deposit, equity sale, or asset transfer. If something is unclear, they’re obligated to ask for more detail. It’s not personal—it’s compliance.

Our OTP approach: We warn you early, explain the purpose behind each request, and help you package documents so your approval is quick.

 

Be ready: Contact us to receive our Escrow KYC Checklist for Buyers or our Seller Disbursement Checklist

 

Quick preview (buyers)

• Passport + second ID; proof of current address (≤90 days)
  
  
• Bank statements (2–3 months) showing funds on hand
  
  
• Documentation proving origin of funds (employment/investments/asset sale)
  
  
• If purchasing via company: formation docs, beneficial ownership, corporate statements
  
  
• Wire from the exact approved account/name; keep SWIFT confirmation
  
  

Quick preview (sellers)

• ID & banking for each payee; completed KYC if requested
  
  
• HOA/condo and utility info for prorations and final reads
  
  
• Mortgage/lien payoff letters and contacts
  
  
• Corporate sellers: authority docs/resolutions; beneficial ownership (if requested)
  
  
• Final disbursement sheet at least 2 business days before closing
  
  

Practical tips from OTP

• Start KYC immediately after your offer is accepted. Incomplete packages create delays.
  
  
• Match names and accounts. Third-party wires often get rejected.
  
  
• Explain lump sums. If you moved funds recently, include the sale statement or broker confirmation.
  
  
• Expect follow-ups. It’s normal and usually quick when your docs are organized.
  
  

FAQs

Is escrow required?
It’s the market standard for safe, compliant closings in Costa Rica. Using a licensed provider keeps funds secure and satisfies AML/KYC obligations.

Can my attorney hold funds instead?
Closings here generally use licensed escrow for custody and disbursement; your attorney focuses on legal due diligence and recording.

Why is my US/Canadian bank also asking questions?
International wires trigger your bank’s AML checks too—expect questions on both sides.

Our promise

Escrow is the one step we can’t do for you, but we can make it far easier.

We’ll help you get it right the first time—with a personal walkthrough of the KYC list, a pre-check of your documents, and coordinated timing with your escrow officer and attorney so wiring and signing line up perfectly.

Have questions or want us to set up your prep folder? Reach out to Osa Tropical Properties—we’re happy to help.