Condominium Life in Costa Rica
Growth of Condominium Living in Costa Rica
The number of square meters built as condominiums grew almost seven times in the last decade, according to data from the Costa Rican Chamber of Construction. In 2000, only 13% of total housing construction corresponded to condominiums, with the remainder consisting of single-family homes. By 2009, condominiums already represented 27% of total residential construction, and this figure has continued to rise.
Although the first apartments in the Central Valley date back to 1965—the oldest date recorded in the databases of the company Inmoinfo—both Inmoinfo and Cake reported a marked increase in the height, size, and frequency of residential towers between 2012 and 2014. This trend has persisted.
These figures illustrate a shift in lifestyle preferences among homeowners. Traditional single-family homes within the Central Valley have become increasingly scarce or prohibitively expensive. As a result, many buyers now opt for smaller, more conveniently located apartments or condominiums within the metropolitan area. These developments typically offer shared recreational and social amenities while reducing the size of individual living spaces.
Constitution and Operation of Condominiums
The constitution and operation of condominiums in Costa Rica present significant legal and administrative challenges. Beyond the approval of construction plans before multiple institutions—including the INVU, CFIA, MOPT, the Fire Department, and the relevant municipalities—the legal establishment of a condominium requires registration before the National Registry.
This process includes the drafting and registration of condominium regulations or bylaws, which must be recorded in a public notary book. These regulations must be carefully adapted to the specific project, whether residential, commercial, office-based, parking-focused, or mixed-use. At the same time, they are constrained by the provisions of the Condominium Property Law, its regulations, and the registration criteria applied by the National Registry—criteria that are not always consistent or precise. The limited jurisprudence in condominium matters further complicates the interpretation of certain legal norms.
Governance Bodies Within a Condominium
The day-to-day operation of a condominium rests on three principal bodies responsible for administration, maintenance, and financial management:
Homeowners Assembly (HOA)
The Homeowners Assembly is the supreme authority within the condominium. It is composed of all property owners and is responsible for appointing the members of the Board of Administration.
Board of Administration
Selected by the Assembly, the Board is charged with administering and enforcing the condominium bylaws. Its responsibilities include collecting monthly condominium fees, creating reserve funds for repairs or unforeseen expenses, and appointing the condominium administrator.
Administration
The administration may be internal or external to the condominium. Appointed by the Board, it oversees maintenance tasks affecting both individual units and shared common areas.
The Condominium Property Law and Its Limitations
The Condominium Property Law was enacted at a time when real estate developments were relatively simple, often involving a single building with a limited number of residential units. Today’s developments are considerably more complex. Many condominiums function as self-contained communities where residents can live, work, study, and access entertainment without leaving the premises.
This evolution has exposed gaps in the law. One recurring issue is the absence of clear rules governing the distribution of condominium fees in mixed-use developments or projects built in stages. Commercial units, residential units, and undeveloped subsidiary lots often have very different service requirements and cost structures, yet may be required to pay identical fees.
Additional challenges arise from registration criteria imposed by the National Registry. For example, condominium regulations may not include restrictions on the use of common areas by owners who are delinquent in paying fees. In such cases, the only available remedy is judicial collection, which entails additional time and expense and may require compliant owners to temporarily cover shortfalls to meet condominium obligations.
Practical Considerations for Condominium Owners
Given these legal and operational complexities, it is essential for prospective buyers and current owners to understand the condominium bylaws, applicable taxation, the structure of condominium fees, and the potential difficulties inherent in this lifestyle. Condominium living can offer convenience and shared amenities, but it also requires collective governance and financial discipline to ensure peaceful coexistence and the proper enjoyment of the property.
Relying on experienced legal counsel familiar with Costa Rican real estate and condominium law is critical to conducting proper due diligence and navigating the legal realities of this increasingly common form of housing.
Feel free to reach us with your questions or comments.
