Commercial disclosures costa rica | Landager
Learn about commercial disclosures costa rica and other essential property laws in Costa Rica. Stay compliant with our expert legal guide.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.
Under the Ley General de Arrendamientos Urbanos y Suburbanos (Law No. 7527), effective since 17 August 1995, commercial disclosures in Costa Rica are heavily tied to the feasibility of the tenant's business. Pursuant to Article 22 regarding hidden defects (vicios ocultos), the lessor is liable for serious vices or defects that prevent or hinder the property's use, even if they were unknown at the time of the contract. If a landlord hides the fact that the property has a pending fine from the Ministry of Health or that the "Uso de Suelo" is restricted, they are in breach of the requirement to provide a unit fit for its intended use (Article 26). One critical practical consideration is the power capacity. While not a distinct statutory disclosure item, landlords must ensure the property can serve its intended purpose; if a tenant needs to run heavy machinery, the landlord should confirm if the current setup can handle it to avoid liability for defects. Lastly, emphasize the tax status. Under Law No. 9635, the landlord must be registered with the Dirección General de Tributación (DGT). Disclosing your status as a formal taxpayer is essential because the tenant requires a "factura electrónica" to deduct the rent as a business expense.
Disclosure Duties in Business Leasing
Landlords must be fully transparent about anything that could affect the tenant's ability to operate their business lawfully and profitably. Article 11 of Law No. 7527 requires the lease contract to include a detailed description of the property, its installations, and its state of conservation, including any known "vicios o defectos."
Electricity Amperage and Connectivity
To meet the obligation of providing a unit fit for its intended use under Article 26, landlords should address the property's infrastructure. Many old buildings in San José lack the electrical capacity for modern industrial needs. Landlords should disclose the available amperage if it impacts the intended business use. Similarly, you should disclose which fiber optic internet providers serve the area, as connectivity is often a material condition for modern commercial tenants.
Pending Litigation or Liens
If the property is currently involved in a lawsuit over ownership or if there is a pending foreclosure, you MUST disclose this. Article 26 requires the landlord to guarantee the peaceful use and enjoyment of the property. If the tenant is evicted by a new owner due to undisclosed litigation, the landlord may be liable for damages and lost profits.
HOA and Municipal Taxes
In commercial settings, municipal taxes can be high. Under the Código Municipal (Law No. 7794), municipalities typically require the property to be "al día" (current) on all municipal taxes and services before issuing a new "Patente Comercial" (Business License) or "Uso de Suelo." Disclose exactly how much these are and whether they are included in the rent. Transparency regarding the "Patente" status is key—if the previous tenant left with unpaid municipal debts, the city might refuse to issue a new license until those debts are cleared.
Common Misconceptions in national
Don't fall for these common myths. Know what the law actually says.
"The landlord is responsible for all business permits."
The landlord only guarantees the property can support the use under Article 26. The tenant is responsible for obtaining the ’Patente’ and ’Permiso Sanitario’ for their specific business.
"I don’t have to disclose previous environmental issues."
Under Article 37 of the Ley Orgánica del Ambiente (Law No. 7554), failing to disclose soil contamination or chemical leaks can lead to objective and solidary liability for environmental damage.
Frequently Asked Questions: Costa Rica Commercial Required Disclosures FAQ
It is a mandatory certificate issued by the local municipality under the Ley de Planificación Urbana (Law No. 4240) and the Código Municipal (Law No. 7794), confirming that the specific business the tenant wants to run is permitted at that location.
Yes, in commercial settings, these can be very high. You must disclose the current fee and how it is adjusted to prevent disputes and ensure the tenant can calculate their total operating costs.
While not a distinct statutory disclosure item, hazardous materials like asbestos must be addressed to ensure the property is fit for its intended use and to avoid liability for defects under Article 22.
How Landager Helps
Landager stores the disclosures and certificates for each Costa Rica commercial property with its lease: upload the signed copies, note the date they were handed to the tenant and set a reminder before a certificate expires. The activity log records who uploaded what and when, which is the evidence you need if a tenant later claims a disclosure was never provided.
Sources & Official References
Get the Costa Rica disclosure checklist
A one-page summary of the key figures, the points to check and the official sources, ready to print.
Get notified when these laws change
We'll email you when landlord-tenant laws update in Costa Rica. No spam — only law changes.
Frequently Asked Questions
▶What are the key landlord-tenant laws in Costa Rica?
Costa Rica's rental market is unique due to the strict 3-year minimum term rule. As a landlord, you should know that even if you sign a 12-month lease, your tenant legally has the right to occupy the property for a full three years, provided they fulfill their obligations. This stability is a cornerstone of the Ley de Arrendamientos Urbanos y Suburbanos (Law 7527). When it comes to rent currency, Costa Rica allows leases in both Colones and US Dollars. However, the rules for increases differ significantly. For housing leases in Colones, increases are capped by the Consumer Price Index (IPC) and cannot exceed 10% unless inflation is higher. For leases in USD, the rent is typically fixed for the entire 3-year term unless the parties explicitly agreed on a different structure that complies with the law. Understanding the "Proceso de Monitorio Arrendaticio" is also vital. This is the accelerated legal process used for evictions due to non-payment of rent. While faster than traditional lawsuits, it still requires following precise notice and filing steps. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the legal eviction process for landlords in Costa Rica?
The eviction process in Costa Rica requires landlords to follow formal legal procedures. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order. Self-help evictions are generally prohibited.
Read the complete guide▶What are the rent increase limits and caps in Costa Rica?
Costa Rica has specific rules governing when and how landlords can increase rent. These rules may include caps on the percentage of increase, minimum notice periods, and restrictions on frequency. Landlords must comply with all applicable regulations when raising rent on existing tenancies.
Read the complete guide▶What are the security deposit rules and return deadlines in Costa Rica?
Costa Rica has rules governing how much landlords can charge as a security deposit, how deposits must be held or protected, and the timeline for returning deposits after a tenancy ends. Landlords must provide itemized statements of any deductions and comply with all statutory deadlines to avoid penalties.
Read the complete guide▶What are the mandatory lease requirements in Costa Rica?
Lease agreements in Costa Rica must comply with applicable national and local laws. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation. Written leases may be required for certain tenancy types or durations.
Read the complete guide▶What are the landlord maintenance and repair obligations in Costa Rica?
Landlords in Costa Rica are generally required to maintain rental properties in a habitable condition, keeping the structure, plumbing, electrical systems, and essential services in proper working order. The specific allocation of maintenance responsibilities between landlord and tenant should be clearly documented in the lease agreement.
Read the complete guide▶What are the late fee and penalty rules for rental properties in Costa Rica?
Costa Rica has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on late fee amounts, and restrictions on interest charges. Late fee provisions should be clearly stated in the lease agreement and must comply with local regulations to be enforceable.
Read the complete guide▶What property disclosures are landlords required to make in Costa Rica?
Landlords in Costa Rica must disclose relevant information about the property to prospective tenants before the lease is signed. Required disclosures typically include known material defects, environmental hazards, previous damage history, and any conditions that could affect the tenant's use and enjoyment of the property.
Read the complete guide
