What legal requirements should I be aware of when buying a used car in Costa Rica

When buying a used car in Costa Rica, several legal requirements must be adhered to ensure a smooth and lawful transaction:

1. Involvement of a Notary Public: A Public Notary is mandatory for drafting the bill of sale (deed), which includes detailed information about the vehicle, buyer, seller, and transaction terms. Notaries in Costa Rica are legally certified lawyers regulated by the Costa Rican Attorney Bar Association

2. Documentation: The seller must provide the original vehicle title, the "Marchamo" (circulation permit), and a bill of sale (Factura de Venta). The buyer needs a valid passport, proof of address, and a tax identification number (NIT).

3. Transfer of Ownership: Both parties must sign the title transfer deed and the lawyer will send it to the national ownership registry and will start the process.

This usually takes less than one week.

4. Vehicle Inspection: The car must pass the Revisión Técnica de Vehículos (DEKRA) to ensure it meets safety and emissions standards

5. Payment of Fees and Taxes: Closing costs, including notary fees and registration costs, are based on the higher of the fiscal value or purchase price. The buyer is responsible for paying transfer fees and taxes at the National Registry.

6. Insurance: The buyer must update the vehicle's insurance policy with their information, as mandatory liability insurance is required in Costa Rica

7. Cancellation of Liens: If there are any outstanding loans or liens on the vehicle, the seller must provide evidence of their cancellation before the transfer can be completed, the lawyer will check the car plate number on the national registry authority to make sure the title is clean.

Understanding and fulfilling these legal requirements will help ensure a secure and compliant purchase of a used car in Costa Rica.

At CarHuntersCR we are at your service to ensure that your car purchase become a pleasent experience.