Commercial disclosures costa rica | Landager

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.

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