FREQUENTLY ASKED QUESTIONS

• Costa Rica has both public and prívate schools, and Guanacaste offers a lot of diferente options such as Montessori, Waldorf International Baccalaureate, and others.
• Schooling in Guanacaste is divided into Preschool (students up to 5 years old), Primary school (6-12 years old), Secondary Schooling (13-18 years old), and higher education available.
• Private schools in Guanacaste have a lot of expatriate students, and teach bilingual and multilingual education.
• There are after-schools programs available on sports, art and music.
• You can find U.S. accredited college preparatory schools, like CRIA, and one-on-one personalized education, like Tide Academy. You choose the school you like depending on your own lifestyle. There are amazing flexible education programs for everyone.
• If you want to know more about the the top private schools in the area, check our blog post about them https://hiddencoastrealty.com/best-private-schools-guanacaste-area

• The currency of Costa Rica is the Colon, although prices on all large items including real estate are generally in US dollars.
• There are national banks: Banco Nacional, Banco de Costa Rica, Banco Popular, etc.
• There are also many private banks: Citibank, Scotiabank, BAC San Jose, Davivienda, etc.
• Most banks will allow you to keep funds in Dollars, Colones, or Euros.
• Wiring between accounts within a bank is typically free.
• Wiring to accounts in other banks is generally very inexpensive: $1-$2.
• You can pay most bills online via transfer or a direct interface with the service provider: utilities, insurance, credit cards, etc.

There are multiple types of property titles in Costa Rica, most commonly, properties you will find on the coast are titled land.

Within the titled land appelation, you will find different types of titles:

Condominium Title

• Condominium title corresponds to properties located within a registered condominium and are easily identifiable due to the fact that the registration number contains the letter “F” as a part of the property title ID # ( Ex: 5-00000-F-000).
• Condominium titles can be condos or single family homes/townhomes located within a registered Condominium or Subcondominium.
• They are regulated by the Condominium’s Bylaws and are subject to an HOA fee which may be modified through the general assembly of the condominium during ownership.
• A legal mortgage can be registered on the property title for the non payment of the HOA fees.
• Certains rules of the condominium might apply to the property in terms of architecture or usage.

Regular Titled Land

• Regular titled land have no limitations other than what is established in the land use emitted by the municipality, the national building code, local urban code and local environmental regulations.
• Regular titled land usually permits a higher footprint than agricultural parcels and condominium titles and can be used as residential, commercial or both depending on the location of the property and what its land use permits.
• It is the most commonly found type of property title on our coastal area.

Agricultural Parcels

• Agricultural parcels have a minimum area of 5,000m2 in rural areas.
• The property is accessible trough a road or parcel of land registered as an agricultural easement.
• Art 32 of the Costa Rican Urban Planning Law: The maximum total coverage is 25% of the size of the lot – A Single family home of up to 300m2 and two floors maximum is permitted and 10% of the property size for housing of agricultural workers as well. An additional 15% can be dedicated to facilities and structures related to agricultural use such as storage room, stables, greenhouses, diairis, water treatment plants and fences.
• The municipality interprets how the above regulations will be applied in regards to the additional permitted structures.
• Agricultural parcels cannot be subdivided further than their minimum size of 5000m2.

All three of these property title types above give you full and perpetual ownership of the property, which you can own under your personal condition or under a corporation and this regardless of your nationality. These types of property titles above are not a lease.

Concessions

• The person that obtains a concession will only have the right of use and enjoyment of the asset, the property is owned and leased by the government.
• Lease terms are usually for 15 or 20 years.
• The request for the obtention of a concession should be executed by the local Municipality with jurisdiction over the property.
• A concession requires an approval from the ICT which is the Costa Rica tourism institute.
• A contract must be executed defining the terms of the lease.
• 51% of the “ownership”over the lease must belong to a Costa Rican ( if the process is executed by a company ).
• A concession “ownership”will generate annual cannon and tax.

Concessions are usually found beachfront as 95% of beachfront properties in Costa Rica are Concessions.

In our area of Tamarindo and surroundings, we also have many titled beachfront properties which are apart of the other 5%. Titled beachfront properties are very valuable due to their rarity.

Overall, and due to the complexity of this type of title and the fact that it is a lease, we rarely sell Concession properties. If the purchaser is from Costa Rica and/or is an experienced investor with lots of years of experience in the country and a full understanding of the risk and legalities.

Possessions or “Información Posesoria”

These are parcels that are in the possession of an individual but were not issued an individual property title.

The requirements to be able to request the titling of the property are the following:

• Having possession of the property/asset for at least a 10 year period under the following conditions: – Continuous – Pacific – Public – Uninterrupted; and – Owner title manner.
• Have a registered survey.
• Three witnesses and acceptance of the neighboring properties.
• Certification from the national registry indicating that the person initiating the process has not acquired any properties under the same process.
• Deed by which the possession right was obtained.

The process can take years to get to the finish line and we do not as company sell possession.

The top 3 of the titles mentioned in this article are the ones that are found in our local real estate market in 99% of the cases and the only ones that we sell as a brokerage.

Please note that laws are subject to change, this is not legal advice, always seek legal advice from a Costa Rican attorney for up to date and professional advisory.

• Residency is not necessary to own property.
• You do not need a visa to arrive in Costa Rica and will be granted a 90 day tourist visa upon arrival.
• A simple way to get residency is called Rentista, wherein you establish that you are able to live off of your own means:
• You need to submit a criminal background check and birth certificate.
• You need to establish that you have $2,500/month in outside support that can be converted into Colones.
• You can also get a visa through marriage to a Costa Rican.
• Investor and business-owner status exist also for investments greater than $220k

• The Registry of Transparency and Final Beneficiaries (RTBF), objective is to reduce tax evasión.
• The RTBF, also known as the shareholder registry, includes information on the identification and location of the legal person, the amount and value of the total shares it holds, details of the ownership of each of the shares, final beneficiaries, as well as identifying information and location of the legal representative or attorney.
• Any Attorney General who, according to the bylaws of the company, has sufficient representation within the company, may carry out the procedures of the RTBF.
• Article 1 established that one of the obliged persons or entities to carry out the RTBF were the branches of Foreign Corporations, but due to its ambiguity it was decided to exchange it for Foreign Corporations with a national legal ID. This means that all those foreign companies that have managed the appointment of attorneys in the country are now also included in the group of companies required to register in the process.
• The data must be updated every year. It is important to note that when a shareholder equals or exceeds 15% of the share control over the total capital of a legal person or legal structure, an extraordinary declaration must be made.
• The month to update the annual data in the RTBF will be September and not April, as initially established.
• It is an obligation to register under this Regulation for corporations (commercial companies), other legal structures (any integration or association whose organization is carried out on a legal basis), third-party resource managers in favor of their clients, non-profit organizations and all private trusts, including those that are elaborated by financial entities.
• The ones forced to enter their information may enter the transactional portal of the Central Bank of Costa Rica, “Central Directo” (www.centraldirecto.fi.cr), using their digital signature. From there they will make the declaration of their shareholders and final beneficiaries.
• FAQ Ministerio de Hacienda https://preguntasfrecuentes.hacienda.go.cr/KB/category/registro-de-accionistas/?cat=1
• Law N° 9416 http://www.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_completo.aspx?param1=NRTC&nValor1=1&nValor2=83186&nValor3=106701&strTipM=TC

The due diligence period is a period of time built in the transaction and described in the purchase and sales agreement that will allow the purchaser and their attorney to do the necessary due diligence on the property of interest before committing to the purchase.

The due diligence period is usually around 21 calendar days and starts as of the next day after the execution of the agreement ( unless stated otherwise in agreement ).

A due diligence checklist is sent by the purchaser’s attorney to the seller attorney at the beginning of the transaction.

The list of requirements depends on the type of property, some requirements might be:

• Survey map of the property.
• Construction blueprints and permits.
• Tax obligations being up to date for property and corporation that owns it if any.
• Last real estate property value declaration with the municipality.
• Land use certificate
• Luxury Home Tax declaration.
• Proof of payment of utilities and public services.
• Rentals or reservations on the property.
• Operating permits.
• Inventory list.
• Judicial & Administrative claims.
• Insurance policy.
• Labor relationships.
• Contracts.
• Existence of water sources.
• Water and electricity availability letter.
• HOA’s.
• Condominium books and Bylaws.
• Condominium maps.
• Budget and Financial statements.
• Others.

This list will vary depending on the property type and specific transaction.

A purchaser buying a single family home shall also conduct a survey study with a Topographer and Construction inspection with an engineer.

A purchaser buying land shall also conduct a survey study with a topographer along with a soil study to analyze the quality of the soil.

All these requirements will determine if the due diligence is positive, in this case the purchaser might continue towards closing.

If the results of the due diligence are negative, then the parties shall be notified in writing and the escrow company will reimburse the earnest money deposit to the purchaser.

• Capital gain tax in Costa Rica began on July 1, 2019.
• The law imposes a capital gain tax of 15%.
• You do not have to pay capital gains tax on your primary residence/home. Capital gains must be paid when selling an investment or commercial property.
• If the property was acquired PRIOR to the law being implemented (July 1, 2019), then the taxpayer has the one-time option to sell the property and pay a 2.25% tax on the sales price of the property.
• If the property is owned by a foreigner who does not have a domicilie in Costa Rica, the BUYER is legally required to hold back 2.5 % of the purchase and sale price to ensure that any capital gains tax is covered.
• It is very important to consult with an attorney to fully understand your specific circumstances, and get the right calculations.

• The base property tax is .25% of the registered value annually.
• There is a luxury tax that is only applicable to high end residences. It is based on the cost to rebuild the home/condo in terms of materials. In practical terms, it applies to very large, recently constructed Costa Rica properties. You can ask if the luxury tax applies to a home you are considering purchasing.

Just has everywhere else in the world you will be paying monthly bills to your utility providers.

Water: Water is usually provided by one of two entities, the “AYA” or a local “ASADA” which will be the designated providers for water in your area. A water meter at your property reads the volume of water usage at your home and is checked on monthly by these entities, based on these readings, you will get billed monthly for your water usage. You can usually pay these bills online through your Costa Rican bank, otherwise you can pay at the supermarket or directly at the offices of the water entity that provides your water.

In some cases, and in certain condominiums, the water is apart of the HOA and each owner gets billed on the overall consumption of the community or condominium.

If the property uses well water, then you will not be billed by these entities.

Water in our area of Guanacaste is relatively inexpensive but nevertheless needs to be consumed with caution as our community often suffers from water shortages towards the end of our dry season ( February-April ).

Cost: Typically a 2 bedroom condo will consume about $30-$40 worth of water per month.

A 3 bedroom single family home with a pool may consume $60-$100 per month.

Internet: High speed internet is widely available in our local costal communities. Various companies offer fiber optic service with available speeds ranging from 100-300mbps. Starlink, along with other satellites linked internet providers are also available for the more remote areas which are not connected to the fiber optic.

Cost: A fiber optic internet connection will cost you around $50-$90 per month.

Electricity: Electricity in our area is billed by a company called “Coopeguanacaste”, it gets billed monthly and similar to the water, you will have an electric meter on your property reading your monthly consumption. Electric is by far the most expensive of your utility bills, good news, it is produced almost exclusively from renewable energy sources. That said, your electricity consumption still has an environmental impact, please turn off lights and AC’s when the room is not in use to limit your impact.

Your AC system, and overall appliances age and quality will be a determinator in your monthly bills, for example an old central AC unit will consume a lot more than individual inverter minisplit AC’s placed in each room. An old fridge might be a high consummer as well. When looking at properties in Costa Rica, we can advise on cost to replace old systems to lower your future overhead.

Cost: A one bedroom Studio might cost anywhere from $50-$150 per month.

A two bedroom condo might cost anywhere from $150-$350 per month.

A three bedroom condo might cost anywhere from $200-$500 per month.

A single family 3 bedroom house might cost anywhere from $300-$800 a month.

A large high end four/five bedroom home might cost anywhere from $500-$1,500 a month.

All of these costs widely depend on the home, its sun exposure, insulation, occupancy and AC usage habits of its occupants. We always assist our clients with estimating their future overhead on electricity ahead of the purchase and we collect past electric bills during due diligence to analyze billing history of the property.

How much does property insurance cost in Costa Rica, and how does it work?

Everything you need to know.

Thanks to a very low risk of natural disasters such as cyclones and hurricanes, property insurance is relatively low in Costa Rica compared to other countries.

There are about 12 different providers of Insurance in Costa Rica, out of which the main companies are “INS” ( Public ), Assa, Mapfre, Lafise, and MNK ( Private ).

All insurers operate legally under the supervision of Costa Rica’s Insurance Superintendency (SUGESE).

They offer different policies covering all of your needs in terms of property insurance.

Here are the main ones to consider:

Structural:

Simply put, this policy is based on how much it would cost to replace or rebuild the damaged structure. This policy only takes into account the value of the build property, not the land, nor the contents of the home. The value is determined and appraised by an industry professional to ensure you are not under-insured or over-insured. This policy will provide coverage for all natural disasters & more that can occur in Costa Rica, such as fire, floods, high winds, earthquakes, etc.

The cost is 0.25% of the appraised value to be paid annually.

Ex: You purchase a property for $1,000,000, and it is determined that the cost of replacing the home is $500,000.

You will pay 0.25% x 500,000 or $1,250 annually in structural Insurance.

Pro tip: Make sure all of your electric systems are in good shape, most property fires in Costa Rica start from an electrical failure. Additionally, make sure to have an adequate amount of fire extinguishers in your home, smoke detectors, and also CO2 detectors if your kitchen stove uses gas.

Contents: Separately from the structural policy, you will have to consider insuring all of the furniture, appliances, and other contents of your home. This policy for content is extremely inexpensive and could cost as little as 0.2% of the value of the contents of your home.

Ex: You are insuring a value of $100,000 worth of contents in your home and would pay around $200 annually for that policy.

Pro tip: Try and keep a record of all of the items present in your home, especially those worth above $2,000 to ensure a smoother process when making a claim.

Liability: Liability insurance will mainly depend on the intended use of the property. If the property is only used by family and friends, it might require a lower coverage than if it is rented out as a rental property.

In the event the home is rented out to 3rd parties, you might want to consider higher coverage to protect yourself in case of an incident with a renter. Your insurance broker can help you determine the right coverage for your property and intended use.

Pro tip: As a landlord, the legal system will take into consideration the efforts you have made as a host to prevent such accidents. Ex: “ Slippery when wet signs”, compliance with local building codes, safety features in place such as lighting, railings, and non-slip surfaces.

Overall, there are several policies to take in consideration when owning a home in Costa Rica but don’t worry, we are happy to put you in touch with an experienced insurance broker who can guide you to make an educated decision on all insurance matters.

Each year, you can reassess your needs and update your policies and providers as needed.

When comparing to other countries, the cost of insurance in Costa Rica is very inexpensive, this and again mainly due to the fact that our coastline and entire territory are shielded from major natural disasters thanks to a privileged location on the climate map.

Please note this information is not legal advice; laws and policies are subject to change. Please consult your attorney and insurance broker for any further advice on insurance matters.

We can recommend local property management companies that will assist you with taking care of your property while you are away. They offer a range of services to help property owners manage their property/investment efficiently. These companies can handle everything from renting out the property to maintaining it and dealing with tenant issues. In this article, we’ll take a closer look at what property management companies in Costa Rica offer.

Rental Services:
One of the main services that property management companies in Costa Rica offer is rental services. This involves advertising the property, pricing, handling check ins/outs, collecting payments, accounting, concierge services and handling any issues that may arise. A good property manager will use all the tools available to make your investment a profitable one including the use of price algorithm and and any other tool that will help you succeed and become a profitable income generating properties. A property manager usually charges a 15-20% commission on every rental they secure for your property. Additionally they will charge you a flat fee varying between $100 – $200 for most properties.

Maintenance Services:
Another key service that property management companies in Costa Rica offer is maintenance services. This involves taking care of routine maintenance tasks such as landscaping, pool cleaning, and regular inspections of the property. Property managers can also handle repairs and renovations, ensuring that the property remains in good condition for your guests to enjoy.

Guests Relations:
Property management companies in Costa Rica also offer tenant relations services. This involves handling tenant complaints, managing concierge services, and ensuring that tenants comply with the rules of the property. Property managers will handle any issues that arise for you.

Financial Management:
Finally, property management companies in Costa Rica offer financial management services. This involves handling bills and employees payments, receiving funds, and managing the property’s finances. Property managers can also provide financial reports to property owners, giving them an overview of their investment’s performance.

In conclusion, property management companies in Costa Rica offer a range of services to help property owners that live outside the country manage their second home or investment properties.

By working with a trustworthy and top property management company, property owners can ensure that their investment is well-maintained and managed, allowing them to enjoy the benefits of their investment without the stress of managing it themselves.

• Costa Rica has some of the best healthcare in Latin America. Costs are low in comparison with the U.S. and some European countries.
• As an expat, there are two health systems you can access to: the government-run universal healthcare system, Caja Costarricense de Seguro Social (CCSS), known as Caja, and the private system.
• Both health systems have new hospitals, new equipment, and professional staff.
• The three largest prívate hospitals around San José (capital of the country) are: CIMA hospital in Escazú, Clínica Bíblica in San José, and Hospital La Católica in San José-Guadalupe
• In Liberia, Guanacaste province, there is a full-service prívate hospital called San Rafael Arcángel. It serves Guanacaste province and nearby beaches such as Tamarindo, Flamingo and Playas del Coco
• Foreigners living in Costa Rica (legal residents only) can join the CCSS and receive treatment (check-ups, prescription drugs, surgeries) by paying a small monthly fee. Tourists and visitors can use Caja facilities only in emergencies.
• For more information, please check La Caja website https://www.ccss.sa.cr/hospitales

• Foreigners have the same rights as Costa Rican nationals, except in the case of concession land (government-leased). The majority (95%) of beachfront property is located in the Maritime Zone and is subject to increased regulation and considerations. Everything else is titled, fee-simple land.
• Costa Rica Properties can be held in the name of individuals or corporations.

When purchasing property in Rica, you have the choice to register the property title under your personal name or under a corporation.

Buying property under your name:

Pros: – You avoid the yearly compliance and fees associated with a corporation, saving you anywhere from $600-$1,500 yearly.

Cons: – If you own a property under your name, it means that you will need to sign in person any contracts, such as a transfer deed, when the time to resell comes, which can create some logistical issues if you are not in the country. Same for contracting certain services.

– Your liability exposure is greater due to the fact that the asset is held under your name; if you get in an accident and someone sues you, it is easier for them to go after your assets if they are under your name.

– Opening a bank account might present certain limitations without a corporation, and this is until you obtain Costa Rican residency if you are a foreigner ( N/A for CR citizens and residents ).

Pro tip: If you are planning to rent out your home in Costa Rica and you are a foreigner, you should definitely purchase through a corporation so that you can open a bank account and operate your rental property easily. A corporate bank account allows for larger sums to transit, allowing you to receive the income, pay bills, pay the property manager, providers, taxes & more.

Buying property under a corporation:

Cons: – You’ll have to stay up to date with the laws and regulations that apply to Costa Rican corporations. ( Good news is your attorney or accountant can handle it all ).

– The cost of the corporate tax and compliance will be anywhere from $600-$1,500 per year. Failure to comply with these laws and payments for three consecutive years can lead to the dissolution of your corporation.

Pros: – You have more liability protection.

– You can open a corporate bank account at the bank, making logistics easier if you want to rent your home and are a foreigner.

– You can sign proxy letters by DocuSign to grant a power to a resident agent in your corporation to sign contracts on your behalf from anywhere in the world.

Pro tip: An SRL, which is the equivalent of a U.S LLC

— — —

Overall, we would say it is mostly advisable to own property under a corporation, although it really depends on the intended use for the property. We are happy to guide you, along with your legal advisor, towards making an educated decision on this matter.

Please note this is not legal advice, just our opinion based on years of experience; laws and policies are subject to change. Please consult your attorney for any further advice on this matter.

• Most deals start with an offer to purchase or letter of intent which is composed by a real estate agent or an attorney. This OTP or LOI will include the main terms of the deal such as, purchase price, legal information of the property, length of the Due Diligence period, inclusion and exclusions etc.. Once signed by the buyer, it is presented to the seller.
• If accepted by the seller, and this usually within a week a 10% of the purchase price is deposited b y the buyer in escrow with a title company and due diligence starts.
• During Due Diligence, the attorney who represents the buyer will study the title and ensure there is nothing wrong from a legal standpoint with the property. Also during the DD, an inspection and inventory will be executed to ensure the physical property does not present any concerns.
• * Important to note that the buyer is free to renounce to the deal and repossess the security deposit at any given time during the DD period and this with no repercussions or specific reason.
• At the end of the Due Diligence and if the green light is given, the buyer will proceed to wire the balance due and the closing date is set.
• At the closing, the buyer and seller or attorneys with powers of attorney will sign off and complete the transaction.

In addition to the property tax, your property if it is a condo or a home, might be subject to an additional tax called the solidarity tax. This tax was created to help finance housing programs for the less privileged and most in need category of the population.

• The Luxury Tax is known as Impuesto Solidario para el Fortalecimiento de Programas de Vivienda (Solidarity Tax for the Strengthening of Housing Programs). It was created for financing decent housing for the population in extreme poverty. It is not deductible for income tax purposes.
• It applies to houses, apartments and condominiums but not to vacant lots.
• The tax is based on the construction value. If the construction value is equal or greater than the amount defined by the Tax Office for a given year, then the property is subject to the luxury tax.
• Tax calculation: Once you have determined the value of the construction and it exceeds the exempt amount for the period, you must calculate the value of the land, according to the valuation parameters and add it to the value of the construction. The sum of these values ​​will give you the total value of the housing unit.
• The tax period is annual, from January 1 to December 31 of each year. It must be paid annually on or before January 15th of each year, to avoid interests and penalties.
• The exempt amount is adjusted each year, 133,000,000.00 colones for 2020 (approx US$ 218,000.00) The amount of tax is on a scale from 0.25% to 0.55% per year, depending on the value of the property.
• Taxpayers must previously register the property in the Virtual Tax Administration (ATV), and fill the form D-179 “Unique Form of Registration, Declaration and Payment of Solidarity Tax for the Strengthening of Housing Programs, Law 8683 ”. This Form D-179 must be submitted every three years updating the value of the properties. First time was January 15, 2019, so the next one will be on January 15th 2022.
• For more information, or to calculate your tax go to Ministerio de Haciendo Website and download the Program of the current year: https://www.hacienda.go.cr/contenido/13513-impuesto-solidario-para-el-fortalecimiento-de-programas-de-vivienda-iso

A special mention to November, our personal favorite, the perfect combination of greenery from the accumulated rain, amazing sunsets, sunnier days due to the upcoming change of season and yet mostly quiet beaches.

The use of an escrow company during a real estate transaction in Costa Rica is essential to ensure a smooth and safe process for all parties involved. Additionally, complying with the escrow requirements by proving the origin of the funds allows sellers to receive their funds in Costa Rica if they so desire, and keeps the country clean from funds with undesirable origins.

Escrow companies are widely used in real estate in Costa Rica; they are the perfect third-party tool to keep all parties safe in a transaction.

They strictly follow the rules established in the purchase and sales agreement and are completely impartial. The escrow company will receive the earnest money deposit, usually 10% of the purchase price in their account at the beginning of the transaction, the balance of the funds closer to closing, and disburse the funds to all parties involved at/right after the closing happens.

Using a Costa Rican escrow facilitates compliance when the seller(s) wish to receive their funds in Costa Rica.

Over the years, we have worked with many different ones and are happy to recommend:

• Geldstuck
• STLA
• AFC

Having strong anti-money laundering laws in place in Costa Rica means there are compliance requirements to fulfill as a buyer of real estate in Costa Rica.

Some of the requirements might be:

Copy of Client’s passport (picture, signature, and stamps of last visit to Costa Rica).
Know Your Client form (provided by Geldstuck, attached; no spaces left blank and signed).

Documents that support the origin of funds to be received by Geldstuck.

This may be, but not limited to, proof of property sale, salaries, dividends, inheritance, or any other document considered to support where funds have originated.

Please consider:

If the origin of funds is salaries and/or savings from salaries:

Paystubs or W2 declaration
Account statements that reflect recurring incoming wires regarding salaries
At least three months of account statements where salaries are received or savings are allocated

If the origin of funds is dividend payments:

Proof of ownership of shares*
Financial statements (certified by a public accountant) or tax filings from the corporation*
Proof of dividend payments
At least three months of account statements where funds are allocated

If the origin of funds is a real estate sale:

Closing documents (sale deed and closing statement)*

Proof of payment (incoming wire to your bank account)
At least three months of bank statements where funds are being held

If the origin of funds is inheritance:

Legal document that confirms inheritance or beneficiaries*
Proof of funds being received
At least three months of bank statements where funds are being held

If the origin of funds is a bank loan or line of credit:

Documents that confirm the loan amount or the available balance from the LOC
Disbursement proof to the bank account

*Legal and financial documents need to be certified and apostilled for the bank’s purposes. You may visit www.apostille.net or the service you consider best for this purpose.

Latest tax filing or tax assessment in order to comply with FATCA law (U.S Citizens) or CRS Reporting Standard for other nationalities.

Once compliance documents are submitted, the escrow will review the documents and submit a request to the receiving bank for it to approve the transaction. The said bank will inform Geldstuck once the financial due diligence is cleared, and the client may then wire the remaining funds.

Please note that the sent wire or wires need to be consistent with the origin and accounts provided for compliance purposes. If you plan to send the initial deposit and final closing amount of funds from different banks or financial institutions, all documentation from each bank/financial institution must be supplied in the beginning process to make the final closing as smooth as possible” “Please verify if you are using funds from more than one bank/financial institution.

* Source Gelstuck escrow company*

*Fraud Warning* Avoid any issues by always confirming the account number with the escrow company by phone, email, and with your agent before making any wire.

Please note this information is not legal advice; laws and policies are subject to change. Please consult your attorney and escrow agent for any further advice on escrow matters.