Is It Risky to Buy Unregistered Land, Concession Land, or Cooperative Land in Costa Rica?

Costa Rica is one of the safest countries in Latin America to buy real estate — when the property is properly titled and registered. But there are risky land types in Costa Rica that cannot be bought safely, or that require special procedures most foreigners are unaware of.

These include:

•  Unregistered land
•  Concession land (Maritime Zone)
•  Cooperative land (Tierras de Cooperativa)
•  Possession rights (Derechos de Posesión)

While these properties may be advertised attractively — often at lower prices — they come with legal traps that can lead to loss of money, inability to build, or ownership disputes.

This 2026 guide explains exactly why these categories are risky, which ones can be purchased safely, and what due diligence must be performed to avoid costly mistakes.

The Short Answer

•  Unregistered land — extremely risky, no title, no security, no financing
•  Concession land — legal with proper process, but regulated and not always transferable to foreigners
•  Cooperative land — cannot be legally sold, only assigned; foreigners must avoid it
•  Possession rights — not recommended, can be disputed, not legally equivalent to ownership

Buying any of these without full legal review is one of the biggest risks for expats in Costa Rica.

Unregistered Land (Terreno No Registrado)

The riskiest land category in Costa Rica.

Unregistered land is property that:

• Has no title number

• Is not recorded in the National Registry

• Has no verified owner

• Cannot be financed, sold formally, or legally transferred

Sellers may offer handwritten agreements or “private contracts,” but these are not recognized as proof of ownership.

Why Unregistered Land Is Extremely Risky

•  No legal proof of ownership
  Anyone can claim rights to the land.
•  You cannot register the land in your name
  There is no title to transfer.
•  Banks will not finance or accept as collateral
  Value becomes purely speculative.
•  You cannot legally sell the land later
  Only titled land can be sold.
•  You cannot guarantee boundaries
  Surveys cannot be officially recorded.
•  Possession can be contested
  Neighbors, squatters, or multiple “owners” may dispute rights.
•  Foreigners have no legal protection
  Civil claims become extremely complex.

Conclusion: Never buy unregistered land.

Concession Land (Zona Marítima Terrestre)

Can be purchased — but only with full legal review.

Concession land is located within the 200-meter Maritime Zone measured from the high-tide line.

Breakdown:

• First 50 meters: public, cannot be purchased

• Next 150 meters: concession zone, managed by municipalities

You cannot own concession land; you lease it through a concession contract.

Risks of Concession Land

•  Foreigners cannot always hold concessions
  Some municipalities require:

• • Permanent residency

  • Local partnerships

  • Corporate structuring

•  Strict zoning rules
  Tourism, residential, and commercial activities may be restricted.
• Expiration risk
  Concessions last 5–20 years and must be renewed.
• Environmental restrictions
  Turtle nesting zones, wetlands, mangroves, and more can block construction.
• Higher due diligence cost
  You must investigate:

• • Municipal plan regulador

  • Zoning classification

  • Existing concessions

  • Overlaps

  • Environmental approvals

• Cannot be financed by banks
  Because it is not titled land.

When Concession Land Is Safe to Buy

• The concession is legally granted and active

• The municipality authorizes your ownership structure

• Zoning allows your intended use

• Maritime Zone laws are followed

• The property is not under environmental restriction

• You hire an attorney who specializes in ZMT law

Concession land is the only “risky category” that can be safely purchased — if done correctly.

Cooperative Land (Tierras de Cooperativa)

Foreigners should avoid this entirely.

Cooperative land belongs to agricultural cooperatives, and members receive land use rights, not ownership.

Key rules:

• Members cannot legally sell the land

• Transfers must be approved internally

• Foreigners cannot inherit these rights

• Property cannot be titled

• Possession is easily challenged

• Banks will not finance

• You cannot legally build in many cases

Many scams target foreigners by pretending cooperative land can be purchased.

It cannot be bought in the traditional sense.

Why Cooperative Land Is Unsafe for Expats

•  No title
•  No legal sale allowed
•  No foreign inheritance
•  Disputes are common
•  Improvements may be lost
•  No municipal permits for construction

Even if the price is attractive, the risk is unacceptable.

Possession Rights (Derechos de Posesión)

High risk unless extremely well documented.

This category refers to property that is “possessed” but not titled. Possession rights may appear legitimate because:

• People live on the land

• Taxes may be paid

• There may be written agreements

But possession is not ownership.

Risks of Possession Rights

•  You are not recognized as the owner
•  The rightful owner can appear at any time
•  Easier for squatters to claim rights
•  You cannot obtain full title without lengthy legal proceedings
•  Banks will not lend
•  Buyers may refuse to purchase later

Only very experienced investors should consider possession rights — and only with a legal strategy to obtain title.

Why These Land Categories Are Marketed to Foreigners

They often appear:

• Cheap

• Beautiful

• Close to beaches

• Large in size

• “Off-market”

• With “motivated sellers”

But the low price typically reflects the legal risk — not a bargain.

Many foreigners discover years later that:

• They never owned anything legally

• They cannot sell the land

• They cannot obtain building permits

• Their rights were never valid

How to Protect Yourself When Buying Land in Costa Rica

1. Perform a full title search
   Confirms ownership and legal status.
2. Verify the plano catastrado
   Ensures boundaries match registry records.
3. Confirm zoning (Uso de Suelo)
   Ensures you can build.
4. Verify water availability
   Required for building permits.
5. Avoid unregistered and cooperative land
   These categories cannot be legalized.
6. Hire a real estate attorney — not just a general lawyer
   Costa Rican property law is highly specific.
7. Never rely on verbal agreements
   Only signed, notarized documents matter.
8. Use escrow — never pay sellers directly
   Ensures funds are released only after verification.

Proper due diligence prevents nearly all problems.

Summary: Is It Risky to Buy These Types of Land?

• Unregistered land → Extremely risky, avoid completely
• Concession land → Can be purchased legally, but requires expert review
• Cooperative land → Cannot be legally sold; foreigners should avoid
• Possession rights → High risk, not recommended for expats

If the land is not titled and registered, your investment is not secure.

Frequently Asked Questions

• Can foreigners own titled property in Costa Rica?
  Yes — 100%.
• Can foreigners own concession property?
  Sometimes — depends on residency status and municipal rules.
• Can cooperative land become titled?
  Almost never. The conversion process is extremely limited.
• Why do some realtors promote risky properties?
  There is no licensing requirement for real estate agents in Costa Rica.
• How do I verify land is safe?
  A real estate attorney performs due diligence, title search, zoning, and water verification.

Take time to think about it

If you’re considering buying land in Costa Rica, we conduct full due diligence — including title verification, zoning checks, water rights, environmental review, and Maritime Zone compliance — to ensure your investment is safe, legal, and fully protected.

Beautiful land should not come with hidden risks.
We make sure it doesn’t.