... Legal Update part 2
The Costa Rican Real Estate Registration System ...
by Lic. Jose Fernando Carter for the ARCR

The National Registry has the responsibility to keep records of many different contracts and aspects. The National Registry is subdivided into:

• Vehicle Registry.
• Boat and Vessel Registry.
• Intellectual and Industrial Property Registry.
• Corporation Registry.
• Civil Association Registry.
• Maritime Terrestrial Zone Concessions Registry.
• Property Plans Registry (Catastro Nacional ).
• Real Estate Registry.

In Costa Rica most of the land is recorded at the National Real Estate Registry. Each property has a number (Matrícula de Folio Real) that starts with the Province number (San José (1), Alajuela (2), Cartago (3), Heredia (4), Guanacaste (5), Puntarenas (6), Limón (7)) followed by the property number and the right number. This last number will be three zero's if the property right is not subdivided into other rights or if it belongs one hundred percent to one person or company. For example, if the property belongs to four different people, each right to that land will have a number that will appear at the end of the sequence. Instead of three zeros there will be 001, 002, 003 or 004, and each right will belong to a different person.
The property number will be as follows:

1- PROVINCE
053620- PROPERTY NUMBER
000- RIGHTS NUMBER

The Real Estate Property Registry keeps records of the location, description, measure, owner's name, boundaries, and the transactions on each property, such as property transfers, liens, mortgages, limitations of use or restrictions, servitude, and property plan number.

The Real Estate Property Registry has a very close link with the:

PROPERTY PLANS REGISTRY
"CATASTRO NACIONAL".

This PROPERTY PLANS REGISTRY keeps record of all the land plans. Each property has to have a plan with the location by coordinates, boundaries, measure, land drawing, "Folio Real" Number or Property Number, name of the owner and the measure of the property in accordance with the Real Estate Property Registry.

To keep all property titles in order, both Registries are very important.

The Real Estate owner doesn't need any other proof than the certification of the property record at the National Registry to demonstrate ownership and all other information about the property recorded at the Land Property Registry.

To clarify the way our Real Estate Property Registry works, I am going to write about the main Registral Principles that rules its function:

1. Rogatory Principle. This principle establishes that the Registry needs to record that the interested person or company should apply for the registration through the presentation of the transaction document.

2. Priority Principle. The first document presented to the Registry gets preference over any other document that has not been presented to the Registry or subsequently presented. According to this principle the National Registry keeps a Diary record which gives a specific number to the document with the exact time and date of presentation.

For every week of "PRE-NOTICE" or "PREAVISO", they have one extra half day off to find a new job.

- The term "Cesantía" is used to give the worker some lay off insurance money in case they don't find a job in the period of time they are "PREAVISO". This amount is to be paid by the contractor as follows:
a. If the maid has less than 30 days old on the job she is not entitled to any amount.
b. If she or he has 30 days to six months, then the amount is the equivalent of ten days work.
c. If they've worked from 6 months to one year, they receive pay for 20 days work.
d. From one year and on, 1 month of salary for each year worked until you reach a maximum 8 months.

- "Vacations", or "Vacaciones" (this term I'm sure you are familiar with) calculations are simple. Give the maid one-day off with pay for each month worked.

Our Civil Code establishes in article 455 "The titles (documents) that have to be submitted for registration that are not recorded do not affect third persons until it is presented to the Registry". So, any document, contract, transaction, lien, mortgage, property transfer, etc. that has to be Registered doesn't affect any other person, than the parties in the contract, if it is not presented to the National Registry and has a number assigned at the Registry's Diary.

3. Registral Public Faith

According to this principle, only the information recorded at the National Registry about a title is valid. If the information is not there, for legal proposes it does not exist.

4. Registral Publicity

Because of this principle all the information existing at the Registry is public and is available to everyone. That is why anyone participating in real estate transactions should consult the Registry before making any deal. It is their responsibility to learn the exact legal situation of the title, if it is clear or not. This principle applies to everyone. Every land transaction needs the participation of a Notary Public. So let's make a brief review of the

Notary Public in Costa Rica .
In Costa Rica the Notary Public, is an Attorney at Law, specialized in Notarial and Registral Law, legally authorized to execute the Notarial function. Notaries should properly advise the persons asking for their services about the correct formation and expression of their own desire in the legal acts they make.

Every Notary must have a Protocol book where they must record every act or transaction requested by their clients. As I already mentioned, to buy, sell, lien or mortgage land it is necessary that a Notary Public make a public deed that must be signed by the contracting parties.

The public deed must be presented for recording at the National Registry, and the Notary Public must follow up in registering the deed in the National Registry as part of his responsibilities.

The Notary Public must study the title of the property at the Registry and advise his clients about it. He also must collect the Property Transfer Tax ( 1.51% of the value), and the documentary stamps (1.1 % approximately) and pay them to the Bank, which is a requirement for the acceptance and registration of the document by the Registry.