What happens when there is a mortgage on the property?

If a property has an existing mortgage, the seller has two options: they can pay off the mortgage upon receiving payment from the buyer, or the buyer can assume the mortgage and continue payments under the seller’s name. In Costa Rica, an unpaid mortgage results in a lien on the property; once ownership transfers, this lien becomes the buyer’s responsibility.

Assuming a mortgage can be advantageous, especially if it’s a long-term bank mortgage. However, non-residents are not eligible for Costa Rican bank mortgages, limiting their options to private lenders or owner financing, which typically only extend terms up to three years.