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Property buyers often wonder if they need a property inspection and why they should bother. If you’ve never bought a property here, you probably don’t know that it’s not common to inspect a property before you purchase it. Costa Rican buyers do not have any inspection done unless they feel it’s necessary to check on specific details of the construction on the property.
Last week, one of our clients wanted a home inspection on a property he wanted to buy on the Southern Caribbean coast. Unfortunately, the closest home inspector lives 4 hours away. There are very few experienced inspectors in the country, and most live in the Central Valley.
We get a lot of rain, and most of the country is mountainous. Rivers and creeks are everywhere, which can create flooding or erosion to surrounding properties. So, inspecting the property before depositing any earnest money deposit is a good idea. I want all my buying clients to hire an inspector before purchasing a property in Costa Rica. “I don’t want my client to call me in the middle of the night that his roof caved in or to bring a shovel to dig them out because the mountain behind the house came down.” The simple answer is yes, and you need a property inspection before you buy a property in Costa Rica.
It is our obligation as experienced Costa Rica real estate agents to make absolutely sure our buyers understand that it is better to be safe than sorry. Properties in Costa Rica are usually sold “as is.” However, a good inspection will warn you about a property’s problems or why you should walk away and look for another property.
When hiring a home inspector in Costa Rica, do NOT hire someone with interests other than checking whether the property and construction are safe and sound. Maybe the property has serious problems or defects. That’s why you need an inspection before you finalize a purchase. Our agents can recommend a home inspector; ask them. I like working with Alex Stripe, a licensed home inspector in Denver who understands the differences in land and houses between Colorado and Costa Rica.
What is a property inspection?
A property inspection is an objective, professional examination that assesses the whole property, including the land and the construction.
This inspection differs from a home inspection. The first results in a report about the whole property, and the second results in a report on the constructed part of the property. Be aware that a condo inspection is also different.
Such a property inspection should watch out for
- bad soil drainage,
- a constructed part has water damage,
- landslides on the property as well as neighboring property, that can create damage in the future,
- badly built retainer walls,
- if water runoffs are well-built and clean
- flooding problems from nearby rivers and creeks
- if the property is fenced properly
Home inspection only?
I try to learn from my mistakes. Therefore, I always ask a home inspector to inspect the whole property, not just the home. A home inspector usually has no experience with landslides and flooding problems. However, a visual inspection is usually enough to verify any issues. Then, if there is any doubt, a buyer can hire a geologist, a structural engineer, a surveyor, or another professional.
An example
Many years ago, I sold a property in San Antonio de Escazu. Usually, I accompany the inspector for a while to ensure nothing is forgotten (and to keep the buyer and seller out of his hair). The house needed some simple repairs, but there were no further problems. Three years later, the buyer called me to ask me to come and see what issue they had. It turned out that there was a large hedge on the east-side property line, and behind the hedge was a significant rainwater drain from the public road. It was just a ditch. And nobody maintained it.
Suddenly, during the rainy season, my clients lost a large chunk of their property because of erosion. Nobody ever looked behind the hedge (which was no man’s land. Of course, the city didn’t get involved, and building an illegal retainer wall was costly so it wouldn’t happen again. It was illegal because the city wouldn’t give the necessary construction plans, so it had to be built on the weekends.
Are they home inspectors?
Unlike the USA and Canada, Costa Rica does not have an organization of home inspectors or anything like that. Over the years, I have had clients use all kinds of professionals to do a home inspection.
Lots of professionals
1. Architects. These professionals are generally more interested in designing and building a new house for you than telling you the good and the bad of a home to be inspected.
2. Engineers. These professionals are generally more interested in building a new house for you.
3. Builders. They either love to build you a new house or would like to remodel it for you.
4. Friends with building experience. Keep them as friends and get a beer with them; don’t let them do your property inspection.
5. Certified home inspectors from Milwaukee or Saskatchewan. They know as much about Costa Rica home construction as I do about salmon fishing in Chile. I have not worked with all those who do professional home inspections in Costa Rica. I often find that those licensed in the United States or Canada do not understand our construction codes in Costa Rica. They frequently comment on issues that might be faulty in the US but not Costa Rica. I’ve even heard some of them say a house is not up to code, while they have zero knowledge of the code in Costa Rica (nor do they understand Spanish so that they can read the existing code).
Why use a home inspector?
As a real estate agent in Costa Rica, I have always promoted using a home inspector. No realtor can know about a property’s defects unless they are obvious. Besides, the agent’s only responsibility is telling you you need a property inspection. Unless you’ve found some serious issues with the property yourself, you want to hire a home inspector. However, you must ask the home inspector to check out the whole property, not only the construction, and report any issues.
Most buyers, once they have fallen in love with a property, do not even consider any defects it might have. Our laws do not oblige sellers to disclose structural issues, boundary disputes, and other negative information about the property.
How long does the inspection take?
Typically, a home inspection takes 2-1/2 to 3 hours, depending on the property size.
I recommend that the purchaser let the home inspector know about any specifics he/she wants to be inspected apart from the normal home inspection. The common practice is to let the home inspector do his job without interruption or interference. It is important not to have the buyer or the seller look over his shoulder during the inspection. Any questions you might have on the report will be attended to correctly afterward.
Things you need to know
Home buyers can catch deficiencies during a real estate developer or builder’s warranty period. Especially in large communities or buildings, it is common for the developer to use subcontractors for each stage of construction. So, it is essential to ensure everything works well and is correctly installed before you use it. Ensure the developer has the water and power connected to the property before the home inspection.
Even a new home or condo needs a home inspection. Just because a home is new does not mean you should assume everything is perfect. Inspections, however, can significantly reduce your risk. Especially when the house is new, it is essential to check on rainwater drainage since everything changes now that the house is built.
