Costa Rica Real Estate Tips - Building a house, or purchasing a new one is an exciting experience.

Inspection is done, the punch list is completed, and everything is fine…or is it?

Well, it could happen that once acquired, unnoticed defects appear which were not seen or more commonly, hidden, at the time you received your newly-built house.

The question is then if you are legally protected under our statutes from those non-apparent construction defects that start showing up once you’ve shaken hands with the developer or contractor and paid the bill.

The good news is that the answer is yes. Our legislation offers protection to those having purchased or who had their home built.

First, there is contractual liability by the contractor (construction company) and by the engineer or architect in charge of the works. They committed to carry out construction in accordance with the terms of the contract, which should be very precise in the case of a turnkey construction agreement.

In this agreement, the contractor takes on the obligation of building under the “rules of the art”, i.e. the best technical standards and practices, and to abide by current laws and regulations. Any defect or flaw which appears afterwards and which is imputable to the contractor or professional, including negligence in the execution of the works or in not adequately looking after the construction workers, gives ground to reparation or compensation as established in the agreement.

Additionally, the Constructions Law and our Civil Code offer a legal framework to guard against those defects by setting a legal guarantee standard that construction professionals accept when signing as the “professional in charge” of the project and, more generally, which is due by any company accountable for all or part of the works. These persons are, by the law, liable for hidden defects of either the construction or the ground on which it was built.

The liability that these professionals carry lasts for up to five years from completion and receipt of the building.

In the event of developers who market condominiums or built homes, they must follow and grant the special responsibility regime drawn by the Consumer Protection Law, including the duty to provide the consumer/purchaser with all necessary information for the proper use and maintenance of the house or unit.

In this case, the consumer who discovers a defect on the construction must give notice of such defect to the developer immediately and without delay. The term to claim such guarantee under the consumer protection law is only 30 days from the moment the discovery is made — if these were hidden at the time of the purchase. The seller may then repair the defects; but if he refuses, a civil action must be filed in court to request damages.

If there is controversy as to the existence or the origin of the defect, a good idea is for both parties to appoint a third-party neutral technical expert — such as an independent engineer — who will determine if the defect exists and whether it is attributable to the company or professional in charge, or if it is due to other causes (defects in the materials, wear and tear, meteorological causes, etc.). Of course, both parties must previously commit to holding the expert’s report as final. This technical dispute resolution method is known as expert arbitration.

But most important, and as a general advice to purchasers or for those entering the adventure of building a new home, the first thing to do is to fully and carefully inspect your property with a representative of the contractor, developer or with the engineer in charge to look for any defects.

Also, have another professional of your choice and who you trust come along with you in the inspection of the property. His expert eye may see what you don’t, and he can also ask the right questions. In this way, you may spot those defects and request that they be fixed before receiving the building.

Inspection forms and punch lists are recommended, where you will get the chance to note down all those flaws found, and which shall be signed by the parties as an addendum or attached document to the purchase or construction contract.

Another legal tip: be sure to give notice of any defect or imperfection as soon as it emerges, so as to not lose your right to demand guarantee. And, of course, always deal with reputable companies and professionals and verify the professionals’ reliability and good name. That’s your best guarantee.