Realtors are often the first people you interact with when looking for Costa Rica property. They show you listings, arrange viewings, answer questions, and facilitate introductions to sellers.
Many buyers assume the realtor is on their side—helping them find the right property at the best price, looking out for their interests, protecting them from problems.
This assumption creates risk.
Here’s the reality: the realtor works for the seller, gets paid only if the deal closes, and earns more money when you pay a higher price. Their financial incentives diverge from yours in almost every meaningful way.
This doesn’t make realtors bad people or inherently dishonest. But it does mean you need to understand the relationship clearly, manage it strategically, and never confuse a realtor’s advice with independent legal counsel.
The buyers who encounter problems are often the ones who treat realtors as trusted advisors rather than sales professionals with inherent conflicts of interest.
How Real Estate Commissions Work in Costa Rica
Understanding commission structures explains why realtor advice must be viewed with appropriate perspective.
Standard Commission Structure
In Costa Rica, real estate commissions typically run 5-7% of the sale price, paid by the seller at closing.
Example on a $400,000 property:
- 6% commission = $24,000
- This comes from the seller’s proceeds at closing
Here’s the critical part: Although the seller pays the commission, it’s built into the sale price. The seller prices the property to net what they want after commission. Effectively, you’re funding the realtor’s commission through the purchase price.
How the Commission Gets Split
The total commission is usually split:
- Listing agent: 50% (the agent who represents the seller and listed the property)
- Buyer’s agent: 50% (the agent who brought you to the property)
If one agent represents both sides (dual agency), they keep the entire commission.
What This Means for Incentives
The realtor makes more money when:
- The deal closes (vs. you walking away)
- You pay a higher price (commission is percentage-based)
- The transaction happens quickly (more deals per year)
- You don’t negotiate aggressively (smoother path to closing)
- You don’t back out during due diligence (preserving their invested time)
The realtor makes less money or no money when:
- You walk away from the deal
- You negotiate the price down significantly
- Due diligence reveals problems and you terminate
- You take substantial time to make decisions
- The deal falls apart for any reason
Your interests:
- Get the best property at the lowest price
- Take sufficient time for thorough due diligence
- Walk away if problems emerge
- Negotiate effectively
- Protect yourself even if it delays or terminates the deal
The alignment: Your interests and the realtor’s interests align on exactly one thing—finding a property you like. After that, they diverge.
Dual Agency: When Conflicts Intensify
Sometimes the listing agent (seller’s agent) also acts as your agent. This is called dual agency, and in Costa Rica it’s both legal and common.
Why realtors pursue dual agency: They keep the entire commission instead of splitting it. On a $400,000 sale with 6% commission, that’s $24,000 vs. $12,000.
Why dual agency creates problems for buyers: The agent now has:
- A contractual duty to the seller to get the highest price
- A duty to you to get the lowest price
- Double the financial incentive for the deal to close
- Conflicts of interest that cannot be resolved
In dual agency situations, the agent typically claims they’ll be “neutral” and “facilitate the transaction fairly.” This is functionally impossible. There’s no such thing as neutral in a negotiation where the parties have opposing interests.
What happens in practice with dual agency:
- Your negotiating position may be shared with the seller
- You may be encouraged to raise your offer
- Problems found in due diligence may be downplayed
- Both sides may be pressured to compromise
- Walking away becomes more difficult
Our perspective: Avoid dual agency completely. If you’re interested in a property listed by an agent, work with a different buyer’s agent or work directly with your attorney. Don’t allow the listing agent to represent both sides.
What Realtors Provide
Despite the conflicts, realtors provide legitimate services:
Market knowledge: Good realtors know what’s on the market, what’s sold recently, and what’s coming up. This saves you time.
Access to listings: Many properties are listed through MLS or individual agencies. Realtors provide access.
Property viewings: Realtors arrange showings, have keys, and can get you into properties you want to see.
Local connections: Established realtors know surveyors, inspectors, attorneys, and other professionals you’ll need.
Negotiation facilitation: Realtors handle the back-and-forth communication with sellers, which can be useful if managed properly.
Paperwork coordination: Realtors help coordinate documents, signatures, and deadlines (though your attorney should verify everything).
These are legitimate services worth compensating. The issue isn’t that realtors provide no value—it’s that buyers sometimes overestimate what realtors provide and underestimate the conflicts.
What Realtors Should Not Be Relied Upon For
Despite what many claim, realtors should not be relied upon for:
Legal Advice
Realtors are not attorneys. They cannot:
- Evaluate whether a contract protects your interests
- Conduct title searches
- Verify permits and zoning
- Assess legal risks
- Advise on complex legal structures (corporations, trusts, etc.)
When a realtor says “this contract is standard” or “you don’t need to worry about that clause,” they’re offering legal opinions they’re not qualified to give.
Your attorney reviews contracts, conducts due diligence, and provides legal counsel. The realtor’s job is to help you find and access properties, not to advise on legal protection.
Due Diligence
Realtors do not conduct comprehensive due diligence. They might arrange for an inspector or survey, but they don’t:
- Verify title at the Registro Nacional (National Registry)
- Confirm permit status with municipalities
- Check for liens, judgments, or legal actions
- Verify zoning and land use restrictions
- Examine corporate structure if applicable
Realtors who claim “I checked and everything is fine” usually mean “I asked the seller and they said it’s fine” or “I hired an inspector who didn’t find obvious problems.”
Your attorney and hired professionals conduct actual due diligence. The realtor coordinates scheduling at most.
Objective Property Evaluation
Realtors are sales professionals. Their job is to help properties sell, not to talk you out of buying.
When a realtor says:
- “This is a great investment”
- “Properties like this don’t stay on the market long”
- “You should make an offer before someone else does”
- “This is priced below market”
- “The seller is very motivated”
They might be stating facts. Or they might be using sales tactics to create urgency and reduce your negotiation leverage. You cannot know which.
Independent appraisers, your attorney, and your own analysis provide objective property evaluation. The realtor provides the sales pitch.
Representation of Your Interests
This is the most significant misconception: buyers thinking the realtor represents them.
Even if you’re working with a “buyer’s agent” (as opposed to the listing agent), that agent:
- Only gets paid if you buy something
- Makes more if you pay more
- Has no ongoing relationship with you
- Will work with other buyers next week
Your attorney:
- Gets paid regardless of whether you buy
- Has no financial interest in the price you pay
- Works for you over multiple transactions potentially
- Has professional liability if they give you bad advice
The realtor is helpful. The realtor is not your advocate.
Warning Signs in Realtor Behavior
Watch for these patterns that suggest a realtor is prioritizing commission over your interests:
Warning Sign 1: Discouraging Legal Review
“You don’t need an attorney for this—it’s a simple transaction.”
“Having an attorney will just slow things down and complicate the deal.”
“The seller’s attorney can handle everything for both of you.”
What this indicates: The realtor knows your attorney will likely find problems or insist on protective terms that might terminate the deal or reduce their commission.
What to do: Ignore this advice completely. Always have independent legal counsel.
Warning Sign 2: Rushing Your Decision
“Another buyer is very interested. You need to make an offer today.”
“Let’s write up a full-price offer right now before it’s too late.”
“The seller is only considering offers submitted by Friday.”
What this indicates: Creating artificial urgency to prevent you from thinking clearly, getting counsel, or negotiating effectively.
What to do: If the property sells while you’re conducting reasonable due diligence, it wasn’t the right opportunity. Don’t be rushed into substantial financial decisions.
Warning Sign 3: Minimizing Problems
After the inspection reveals issues:
“Oh, that’s normal for houses here.”
“That’s an easy fix—maybe $500.”
“Don’t worry about the permit issue—everyone does that.”
What this indicates: The realtor is trying to keep the deal alive despite legitimate concerns.
What to do: Get independent assessment of the severity and cost of any problems. Don’t rely on the realtor’s reassurances.
Warning Sign 4: Pushing You to Increase Offers
“The seller rejected your offer. I think if you go up by $20,000, they’ll accept.”
“Your offer is good but there are other buyers. You should go higher.”
“I’ll present your offer, but honestly, you probably need to add another $10,000.”
What this indicates: More money for the realtor. Other buyers may or may not exist.
What to do: Decide your maximum price based on property value and your budget, not realtor suggestions. If the seller rejects it, let them counter.
Warning Sign 5: Recommending Their Attorney
“I know a great attorney who can handle this.”
“I work with this attorney all the time—they’re very efficient.”
“My attorney can review the contract for you.”
What this indicates: The attorney the realtor recommends works with them regularly on multiple deals. Their ongoing relationship is with the realtor, not you. They may prioritize maintaining that referral relationship.
What to do: Find your own independent attorney with no relationship to the realtor.
Warning Sign 6: Discouraging Due Diligence
“You don’t need a survey—the lot size is in the listing.”
“A full inspection is overkill for a property this new.”
“Title insurance isn’t really a thing in Costa Rica, so don’t worry about title issues.”
What this indicates: The realtor knows due diligence might reveal deal-terminating problems.
What to do: Conduct thorough due diligence regardless of realtor opinions on what’s “necessary.”
Warning Sign 7: Acting as Dual Agent Without Disclosure
Sometimes realtors don’t explicitly tell you they represent both sides. You might assume you have a buyer’s agent when in fact they listed the property too.
What this indicates: Undisclosed conflicts of interest.
What to do: Explicitly ask at the beginning: “Do you represent the seller in any capacity? Did you list this property?” If yes, consider working with someone else.
How to Work Effectively With Realtors in Costa Rica
Despite the conflicts, you can work productively with realtors if you manage the relationship properly:
Set Clear Boundaries
From the first interaction, establish:
“I appreciate your help finding properties. I’ll be using my own attorney for all legal advice and document review. I’ll conduct full due diligence on any property before making an offer. I move at my own pace.”
This sets expectations and signals that you understand the process.
Use Realtors for Access, Not Advice
Let realtors:
- Show you properties
- Provide market data and comparable sales
- Communicate your offers to sellers
- Coordinate showings and inspections
- Facilitate paperwork flow
Don’t let realtors:
- Review contracts for you
- Advise on legal protections
- Pressure you on timing
- Minimize problems
- Discourage professional due diligence
Verify Everything
When a realtor tells you something about a property:
- Lot size → Verify with survey
- Permit status → Verify with municipality
- Zoning → Verify with land use certificate
- Utilities → Verify with utility companies
- Title status → Verify with Registro Nacional
Don’t accept “the seller says” as verification of anything.
Keep Your Cards Close
Don’t tell the realtor:
- Your maximum budget
- How strongly you want the property
- Your financing status
- Your timeline pressure
- What price you’d accept if countered
Information shared with the realtor may be shared with the seller, even if they’re supposedly “your” agent. Give them only what they need to write up your offer.
Get Multiple Opinions
Don’t rely on a single realtor’s view of the market. Talk to several. Compare what they say about:
- Property values
- Market conditions
- Negotiation strategies
- Typical timelines
If one realtor’s advice differs significantly from others, question why.
Understand the Realtor’s Written Role
In Costa Rica, buyer-realtor relationships are often informal with no written agreement. This means:
- You’re not obligated to work exclusively with one realtor
- You can walk away at any time
- You don’t owe commission (seller pays)
- You have no contractual duty to the realtor
If a realtor asks you to sign a “buyer agency agreement,” read it carefully with your attorney before signing. Some of these agreements:
- Require you to pay commission if seller doesn’t
- Lock you into exclusivity
- Obligate you to the realtor for properties they showed you even if you buy later through someone else
We generally recommend against signing buyer agency agreements in Costa Rica unless there’s a specific reason.
When to Terminate the Realtor Relationship
Sometimes the realtor relationship becomes counterproductive.
Consider terminating if:
- Realtor actively discourages legal counsel
- Realtor pressures you to skip due diligence
- Realtor has undisclosed conflicts (dual agency, family relationship with seller, financial interest in property)
- Realtor misrepresents material facts
- Realtor shares your confidential information with seller
- Realtor prioritizes closing over your protection
You owe the realtor nothing contractually. If they’re not serving your interests, move on.
The Attorney-Realtor Dynamic
Your attorney and the realtor will interact during the transaction. Understanding this dynamic helps you manage both:
What typically happens:
- Realtor coordinates paperwork between parties
- Realtor may pressure both attorneys to “move faster” or “not complicate things”
- Your attorney finds problems or insists on protective terms
- Realtor may complain that your attorney is “killing the deal” or “being difficult”
- Seller’s attorney (often also the closing notary) may side with realtor on keeping deal moving
What you need to remember: Your attorney works for you. The realtor works for their commission. When there’s tension between them, it’s often because your attorney is protecting you and the realtor wants the deal to close regardless.
Support your attorney’s judgment. If they’re saying “we need more time for due diligence” or “this contract term is unacceptable,” consider their advice carefully over realtor pressure to move forward.
The “Realtor’s Attorney” Issue
Many realtors recommend attorneys they work with regularly. This creates a dynamic worth understanding:
The attorney has an ongoing relationship with the realtor. The realtor sends them clients repeatedly. The attorney knows that being “difficult” (i.e., thoroughly protecting clients) might mean the realtor stops referring business.
This doesn’t mean every realtor-recommended attorney is compromised. But you should be aware of the dynamic and watch for signs:
Patterns suggesting the attorney prioritizes the realtor relationship:
- Attorney discourages you from raising concerns or asking questions
- Attorney says protective contract terms are “unnecessary” or “not standard”
- Attorney rushes due diligence or skips steps
- Attorney sides with realtor when you want to slow down or walk away
- Attorney seems more concerned with closing than protecting you
If you observe these patterns: Consider getting a second opinion from an independent attorney with no realtor relationship.
Realtors and Property Marketing: Reading Between the Lines
Understanding how properties are marketed helps you evaluate realtor claims:
- “Motivated seller” = Seller may be flexible on price, or there may be a problem with the property keeping it on the market
- “Priced to sell” = Standard marketing language
- “Rare opportunity” = Standard sales language
- “Investment property” = Property might not be ideal for living, or targeting buyers who won’t scrutinize details
- “Handyman special” = Significant work needed
- “Potential” = Property needs work or has issues preventing it from being marketed on current state
- “As-is” = Seller won’t fix anything and there are likely problems
- “Sold as-is, where-is” = Serious problems may exist, seller taking no responsibility
Learn to read these codes and look past the marketing to evaluate properties objectively.
The Bottom Line on Working With Realtors
Realtors provide access to properties and facilitate transactions. That’s valuable, and it’s worth the commission that’s built into the purchase price.
But realtors are not:
- Your attorney
- Your advocate
- Objective advisors
- Due diligence professionals
- Primarily concerned with your interests
Their job is to close deals. Your job is to protect your investment. Sometimes those align, sometimes they don’t.
The buyers who have good experiences with Costa Rica real estate are the ones who:
- Understand the realtor’s role and limitations
- Use realtors for access while getting independent counsel for protection
- Don’t let realtor pressure override their own judgment
- Verify everything rather than trusting sales pitches
- Recognize conflicts of interest and manage them appropriately
Work with realtors. Use their services. Appreciate what they bring to the transaction. But remember whose commission depends on you buying that property.
In our final article, we’ll examine common mistakes buyers make throughout the entire process: the warning signs they ignore, the shortcuts they take, and the expensive lessons others have learned.
Feel free to reach us with your questions or comments.
This is Article 5 in our Costa Rica Real Estate Series
Next: Common Mistakes: Learn From Others’ Expensive Lessons
Previous: The Closing Process: What Happens When You Sign the Deed
Complete Series:
- Purchase & Sale Agreement: Essential Terms
- Due Diligence Deep Dive
- Escrow: Your Safety Net
- The Closing Process
- The Realtor Relationship (this article)
- Common Mistakes and Lessons Learned
