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Costa Rica/2 opcion de compra venta contracts

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Question
i wanted to buy an apartment unit here in costa rica, but i cannot afford the down payment of 20% for the apartment, so the developer of the apartment suggested that we make 2 contracts, #1 with the original price of the apartment he will sell me, and the #2 with a higher price so that when the bank approved the loan, and it can also cover the down payment that i dont have. they also wants me to pay 10% in cash after i signed the compra venta contracts. is this legal or common practice? is this also safe?

Answer
Making two contracts is not a common practice but it is done sometimes, the 10 percent is usually paid for as a payment in good faith, basically to tie the buyer into the sale.
Signed reciepts should always be given specially when cash is transferred and what the payment is for should be mentioned.
One thing to take i consideration is that bank loans are not based solely on the amount of the contract but they are based more on the expert which the bank values the property, so the loan may or may not be enough to cover the down payment.
I would also strongly advise to have your own Lawyer do any transaction regarding the sale or contracts of any type of Real Estate, vehicles or any other legal matter.  

Lic.Gregory Kearney Lawson.:
attorneykearney@yahoo.com

Costa Rica

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Lic.Gregory Kearney Lawson.

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American/Costarrican Attorney at Law/Real Estate Broker, We specialize in relocation and expat services related to Costa Rica, Residency, Immigration proceedures,Real Estate sales, International Law, Business Law, Corporations, Family Law, Wedding planning, private investigations and genealogical research, Notarial services, tax shelters, Civil and Criminal Law, serving of court documents. We can also advise on several other aspects related to Costa Rica, such as Tourism, everyday living, culture, etc.

Experience

20 years experience with clients from over 75 countries, Presidential candidate for of the Costarrican Barr Association 1999 Presently running for Congress at the Costarrican Legislative Assembly 2014-2018

Organizations
Past member Masonic Lodge Past President Lions Club Past President Community developement association Past Delegate of the Supreme Tribunal of Elections

Publications
La Republica Newspaper, Tico Times, AM Costa Rica, La Prensa Libre, La Nación, Daily Extra, Gamma Liason news agency, SIPA Press, SYGMA News agency, Channel 6,7,11,13,19,42 TV, National USA TV, many radio programs.

Education/Credentials
Autonomous University of Central America Univerisity of Costa Rica Glendale College Lumbleau Real Estate School University of San Judas Tadeo

Awards and Honors
Numerous certificates and distinctions from the Barr Association, the Journalists association,the Medical association, the Supreme Court,the Judicial Power (OIJ) Eagle scout badge with three palms

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