Buying a Condo in Costa Rica: HOA Fees, Bylaws, and What to Check
What Condominium Law 7933 means for your fees, your rental plans, and your closing checklist.
Buying a condo in Costa Rica means buying two things at once: your private unit and a share of everything the community owns. Condominium Law 7933 governs both. Before you sign, review the bylaws, the HOA budget, the reserve fund, and written proof that fees are paid, ideally with a licensed Costa Rican attorney.
We sell and manage condos in Playas del Coco and Ocotal every week, so we read a lot of condo paperwork. This guide to buying a condo in Costa Rica covers what the law actually says, how Costa Rica condo fees work, and the specific documents we ask for before any client makes an offer.
What law governs condos in Costa Rica?
Condominiums here are regulated by Law 7933, the Ley Reguladora de la Propiedad en Condominio, passed in 1999. Under this law, the whole development is registered as one mother property (the finca matriz), and each unit is its own titled property (a finca filial) recorded in the National Registry. You hold clear title to your unit plus a proportional share of the common areas, based on your unit's size.
One thing that surprises buyers: in Guanacaste, plenty of properties that look like standalone houses or townhomes are legally condos too. These are horizontal condominium regimes, and the same law, the same fees, and the same bylaws apply. Gated communities around Coco such as Pacifico and Coco Bay Estates work this way. If you are new to the process, our post on how to buy a home in Costa Rica walks through the full purchase timeline.
How do Costa Rica condo fees work?
Every owner pays a maintenance quota, usually monthly, calculated from the unit's percentage share of the condominium. The owners' assembly approves an annual budget of common expenses, and once that budget is approved, paying your share is mandatory under the law. There is no opting out because you do not use the pool.
What the fee covers varies by community. In Coco and Ocotal, budgets typically include security, pool and garden maintenance, common area electricity and water, building insurance on common structures, and an administrator's fee. Some communities add internet, cable, or a beach club. As a rule, the longer the amenity list, the higher the fee. We manage 60+ rentals in these communities and see the fee statements every month, so if you want current examples for a specific building, ask us and we will share what we know.
One honest tradeoff: a low fee is not automatically good news. It can mean a lean, well-run community, or it can mean nobody is saving for the roof. The budget tells you which.
What should you check in the bylaws before you buy?
Every condominium has a registered reglamento, its bylaws, that set the rules for the community. Owners are bound by them from day one, so read them before your offer, not after. The items we always check:
- Rental rules. Some communities welcome short-term rentals, some set minimum stays, and some ban them. If your plan depends on Airbnb income, this clause matters more than the view.
- Pets. Size limits and breed restrictions are common.
- Remodeling. Exterior changes, terraces, and even paint colors often need approval.
- Parking and storage. Confirm what is deeded to your unit versus first come, first served.
- Commercial use. Relevant if you plan to run a business from home.
Communities differ a lot. Las Palmas in downtown Coco, for example, is a rental-friendly community where many owners run vacation rentals, and we wrote about it in our Las Palmas overview. Other communities in the hills are quiet and residential on purpose. Neither is wrong. The mistake is buying in one while expecting the other.
Does the condo have a reserve fund?
The administration is supposed to build the annual budget on real, reliable financial statements, preferably audited. A healthy community also keeps a reserve fund for big-ticket items: roofs, pool resurfacing, road repaving, pumps. When there is no reserve, those costs arrive as special assessments (derramas), which are one-time charges split among owners, sometimes in the thousands of dollars per unit.
So before buying a condo in Costa Rica, ask for the last two years of financial statements, the current reserve balance, the delinquency rate, and any projects the assembly has discussed but not yet funded. A community where 30 percent of owners are behind on fees will struggle to maintain what you are paying for.
What happens if the seller owes back HOA fees?
Unpaid condo fees do not disappear at closing. Under Costa Rican condominium law, fee debt is a preferential encumbrance that follows the unit, and a buyer can end up responsible for the seller's arrears. The fix is simple: your attorney should require a certification from the condo administrator stating the unit is current on all quotas, dated as close to closing as possible, and make it a condition of the purchase.
This is one of several reasons we tell every buyer that hiring a good lawyer in Costa Rica is not optional. Condo due diligence is document work, and the documents are in Spanish.
How do condo assemblies and voting work?
The assembly of owners is the highest authority in the condominium. It approves budgets, elects or ratifies the administrator, and changes the rules. Votes are generally weighted by each unit's ownership percentage, not one vote per person.
The rules for changing the governing documents were reformed in 2022. According to EY's alert on the reform of Article 27 of Law 7933, in force since June 28, 2022, amendments to the condominium's founding deed or its regulations require the vote of at least two-thirds of the total value of the condominium. In practice that means the rules you buy into are fairly stable, but they are not frozen. If you live abroad part of the year, leave a proxy with someone you trust so your vote counts at assemblies. Confirm the current voting rules for your specific condominium with your attorney, since founding deeds can add requirements.
Our pre-purchase condo checklist
When buying a condo in Costa Rica, here is the short version of what we gather with the buyer's attorney before closing on a condo:
- Registry report for the finca filial (title, liens, exact ownership percentage).
- Full copy of the registered bylaws, plus any amendments.
- Minutes from the last two or three owners' assemblies.
- Current budget, financial statements, and reserve fund balance.
- Delinquency report and administrator's certification that the unit is current.
- Any pending or discussed special assessments.
- Written confirmation of the rental policy if you plan to rent.
- Utility accounts and how water is billed (some communities bill through the HOA).
None of this is exotic. It is a morning of emails when the community is well run, and when the documents are slow to appear, that delay is itself useful information. If you are still weighing whether ownership fits your plans at all, our post on renting versus buying in Costa Rica is a good place to start.
Ready to look at condos in Coco or Ocotal?
We live here, we manage condos here, and we are happy to tell you which communities fit your budget and your plans, including the ones we would skip. Browse our current condo and home listings, or send us a note through our contact page and we will answer on WhatsApp, usually the same day.
Frequently asked questions
Are HOA fees mandatory in a Costa Rica condominium?
Yes. Under Law 7933, once the owners' assembly approves the annual budget of common expenses, every owner must pay their proportional share, whether or not they use the amenities. Unpaid quotas become a debt attached to the unit itself, so nonpayment can lead to legal collection against the property.
Can condo bylaws stop me from renting my unit on Airbnb?
They can. Each condominium's registered bylaws set the rules for how units may be used, and some communities restrict or prohibit short-term rentals or impose minimum stays. Always get the current bylaws and written confirmation of the rental policy before you buy, and have your attorney verify them in the registered documents.
Do unpaid condo fees transfer to the new owner in Costa Rica?
Fee debt follows the unit as a preferential encumbrance, so a buyer can inherit the seller's arrears. Standard practice is to require a certification from the condominium administrator, dated near closing, confirming all quotas are paid. Your attorney should make that certification a condition of the purchase agreement.
Cover photo: Juan Pablo Daniel, Pexels · Photo: Tima Miroshnichenko, Pexels
