WITH land in Costa Rica being bought and sold
at a furious pace, it seems that just about anyone who knows
of property for sale can show the site or building and make
a deal. That’s because licensing is not required by
law in this country, though not for want of trying by the
two primary Costa
Rica real estate associations.
Both the Costa Rica Global Association of Real Estate (CRGAR)(www.costaricare.net,
653-0300) and the Costa Rican Real Estate Association (CCCBR)
(www.camaracbr.or.cr, 283-0191) support mandatory licensing
of real estate agents. The two groups had hoped to see eight
year old draft legislation aimed at regulating Costa Rica’s
real estate industry pass the plenary session of Congress;
however, it has now been permanently filed, and must be resubmitted
before it can be brought before the government again.
Earlier this year, the CRGAR proposed a study of the original
bill in an attempt to avoid whatever stalled it the first
time, and to further efforts toward required licensing of
real estate professionals here. The CCCBR has sent four bills
for consideration and has never received any answers.
In an interview at his Tamarindo Century 21Coastal Estates
offices, Nicholas Viale, CRGAR president, discussed the ongoing
process of legal licensing of realtors in the country. “We
are in favor of raising the standards of the industry, as
well as controlling of our ethics, because we are customer
oriented,” he told The Tico Times. “Of course
we are in favor of regulated licensing, but we know it will
take time in Costa Rica.” According to Emilia Piza,
president of the CCCBR, who spoke to The Tico Times on the
way to a real estate conference at Liberia’s Do It
Center, her group’s main concern is “to protect
Costa Rica and do everything legally.” She cites a
number of foreigners who are working without legal residency
or work permits; by breaking Costa Rican law, Piza said,
these realtors are not following a code of ethics. “Some
of them don’t even speak Spanish or have work papers
they’re tourists,” Piza said. “They are
buying and selling our lands for X amount of money and reselling
it to another foreigner for absurd quantities, making huge
profits for themselves.
This isn’t close to what the ethics code stipulates.” She
added that the CCCBR will keep pushing its position for stronger
laws to protect the Costa Rican people who are having their
land taken away at cheap prices and sold for much more.
The CCCBR sent its bills to the Legislative Assembly with
the hope that their passage would eventually “help
to take stronger measures against anomalies.” After
making no more progress with the government than its fellow
real estate association, CCCBR members decided to police
themselves for quality and principles by implementing a code
of ethics, as well as licensing requirements that would only
be fulfilled following training courses.
The CRGAR took a page from its fellow association’s
book and developed its own code of ethics; the group began
training its members for organizational real estate licenses
years ago. “Instead of focusing on getting the government
to force licensing, we created a CRGAR license, complete
with training of our people, including approaches of general
law and constitution in Costa Rica, and specific real estate
matters such as condo law, contracts, development and escrow,” Viale
explained. “This training gives our brokers a good
knowledge of real estate laws.
We also give membership cards with the license and certificates
when training is completed, in a program of very specific
classes led by the best real estate lawyers and professionals
in the country.” SUCH a course was offered to CRGAR
member agents, brokers, property managers and developers
in September. Entitled “Legal Aspects of the Condominium
Law in Costa Rica,” the four hour class covered the
essentials and updated participants on the latest regulations,
as well as conflict prevention and resolution.
“Our
members start with basic training, then move on to further
studies in their areas of expertise, such as this recent
program in condominium law, or perhaps corporations,” Viale
said. “They continue to learn, and each time they complete
a new training course, they get a specific certificate.” “Generally,
we focus on training in the CRGAR, and that’s the best
guarantee we can give our customers,” he concluded.
Adapting and adhering to the individual ethics codes within
the two real estate organizations is another important point
emphasized by both Viale and Piza, especially when discussing
the risk prospective buyers or sellers take when dealing
with unlicensed people acting as real estate agents in the
country. This was the strongest point used to seal a recent
deal that has resulted in a bilateral partnership between
the CRGAR and the U.S. National Association of Realtors (NAR),
the largest association of real estate agents in the world,
with more than a million members.
Once again following the lead of the CCCBR, which is already
in accord with NAR, Viale will sign the deal on behalf of
CRGAR this month at the NAR’s annual convention in
San Francisco, California, allowing members of his organization
benefits such as the ability to legally call themselves Realtors®,
a registered term. Other perks include access to the NAR
resource center, its international training programs, the
right to use NAR’s Web site and the opportunity to
join the International Consortium of Real Estate Associations,
leading to still more benefits, such as a secure international
referral system and a global information center with outstanding
resources.
These links between real estate groups in Costa Rica and
organizations in the United States, as well as connections
to international associations, are the future of the real
estate business, Viale said. “The way of selling real
estate has changed lately,” he commented. “It’s
all about connecting our association and its resources with
other associations and their resources through the Internet,
and new venues such as these organizational linkups.” WHAT
about the possibility of CRGAR and CCCBR merging into one
Costa Rican real estate unit? Piza is no stranger to affiliated
benefits, and said she’d negotiate with CRGAR if the
situation were right.
After all, she’s not only president of the CCCBR,
but has been a member since she started working in real estate
in 1974, and is also enrolled in the International Federation
of Professionals in Real Estate, the Federation of Chambers
and Associations of Real Estate of Central America, Panama
and the Caribbean, and in the NAR. “It’s better
to have two separate associations,” Viale asserted. “We
might be able to organize a better lobby for, say, the eventual
licensing of realtors, but also other real estate related
laws and projects.
Also, having more than one group in Costa Rica offers more
alternatives to our members, and more experience and tools
for clients and real estate agents to draw upon. We recognize
(the CCCBR’s) training program and we would give each
licensed CCCBR member a license in CRGAR without having them
go through our basic training.”
If you want more information about the best real
estate affordable, please contact Costa
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