Why Buyers Consider Pre-Construction
Buying before or during construction can offer the appeal of customizing finishes, potentially lower pricing compared to a finished comparable unit, and a flexible payment schedule spread across construction milestones rather than a single lump sum. These features attract buyers who are comfortable with the added uncertainty involved.
That uncertainty is real: pre-construction purchases depend on a developer completing the project as promised, on time, and to the agreed specifications, so evaluating the developer is at least as important as evaluating the design itself.
Researching the Developer's Track Record
Buyers are generally well served by asking to see a developer's completed projects in person, speaking with existing owners about their experience, and asking directly about any past project delays or disputes. A pattern of finished, occupied projects is a more meaningful signal than marketing renderings alone.
It is also worth confirming, through an independent attorney, that the developer has clear title to the land, appropriate permits for the proposed project, and no undisclosed liens that could complicate the development timeline.
Contract Terms Worth Reviewing Closely
Pre-construction contracts typically address the payment schedule tied to construction milestones, the process for verifying that a milestone has actually been reached before releasing funds, and what happens if construction is delayed or the project is not completed. These provisions differ significantly from contract to contract and deserve careful attorney review rather than a quick read.
Buyers should also look closely at how finishes and specifications are described, since vague language can leave room for substitutions that differ from what was originally marketed. Attaching detailed specification sheets to the contract, where possible, can help reduce ambiguity later.
Escrow arrangements for staged payments are common and are generally considered a safer structure than paying a developer directly, since funds can be tied to verified progress rather than released upfront.
Timeline Expectations and Delay Risk
Construction timelines in remote or developing beach areas can be affected by weather, permitting processes, and the availability of skilled labor and materials, and delays relative to an original estimate are not unusual in the industry generally. Buyers should ask how a contract addresses delays, including whether there are any remedies or penalties defined.
Building in a financial and personal buffer around an estimated completion date, rather than planning around the earliest projected date, tends to reduce stress if the schedule shifts.
Bringing in the Right Advisors
Given the number of moving pieces involved, pre-construction purchases generally warrant review by an independent attorney who is not affiliated with the developer, as well as an accountant who can advise on how staged payments and any applicable taxes should be handled.
This guide is general information only and is not legal, tax, or financial advice. Laws, rates, and thresholds in Costa Rica change over time, so confirm current requirements with a licensed Costa Rican attorney, accountant, or other qualified professional before making any decisions.