Understanding Costa Rica Real Estate Escrow: Critical Risks for Foreign Buyers

Understand Costa Rica's real estate escrow laws. Learn the risks of 'señal de trato', SUGEF regulations, and how to protect your investment in 2026.

By: AXL Media

Published: Apr 16, 2026, 11:15 AM EDT

Source: The Tico Times

The Legal Distinction: Escrow vs. Trust Contracts

In the Costa Rican market, buyers must distinguish between an escrow contract and a trust contract. An escrow is typically used for specific, short-term purposes, such as an earnest money deposit to lock in a property price—usually around 10% in Costa Rica. Conversely, a trust (fideicomiso) involves a more complex, ongoing legal relationship often used for managing long-term wealth or staggered payments. For most residential purchases, the escrow contract is the primary vehicle, yet it lacks a formal definition under Costa Rican Roman Civil Law, leading to potential legal "gray areas."

The "Señal de Trato" and the Risk of Automatic Sale

Under Costa Rica's Civil and Commercial Codes, any amount given as an initial deposit is legally presumed to be "part of the price." This means that unless a contract explicitly states otherwise, the act of handing over money can be interpreted as the deal being "perfected" or finalized. This creates a strategic risk: if a buyer provides a deposit but later wishes to withdraw during the due diligence phase, they may find themselves legally stuck with a property they no longer want, as the court may view the "intent" of the parties as a completed purchase.

Case Study: The $500,000 Escrow Fraud

The dangers of using unregulated or financially unstable escrow handlers are highlighted by a landmark Costa Rican court case. In this instance, a buyer deposited the full purchase price into an escrow account while waiting for a court annotation (a legal lien) to be lifted. During this period, the escrow company was defrauded internally and went bankrupt. The court ruled that because the seller had allowed the buyer to move in and accepted the deposit into escrow, the "loss of funds" belonged to the seller. The seller lost both the $500,000 and the property, as the escrow company had no attachable assets for recovery.