How to open an escrow account, requirements, and the process in Costa Rica?

Information provided by AFC Accounting

If the transaction is made in your personal name:

• Copy of current passport
• Copy of the purchase-sale option contract.
• Sign the escrow contract with AFC (we base this contract on the information contained in the purchase-sale option ).
• Complete and sign the (KYC ) Know Your Customer form (basic personal information is requested).
• Proof of liquidity and origin of funds: We require the account information from which you are sending the funds, either the last 3 bank statements or a reference letter from the bank, which must include the name of the account holder, the account number, since when you are your customer and the average monthly balance in the account during the last year.

If the transaction is carried out in your corporation :

• Copy of current passport
• Copy of the purchase-sale option contract.
• Sign the escrow contract with AFC (we base this contract on the information contained in the purchase-sale option).
• (KYC ) Know Your Customer Form (basic personal information is requested).
• (KYC ) Know Your Customer Form (Legal-Business)
• Constitutive act and legal documents that indicate who is the legal representative and partners of the company. If it is a company incorporated in Costa Rica, legal status and shareholder certification.
• Proof of liquidity and origin of funds: We require the account information from which you are sending the funds, either the last 3 bank statements or a reference letter from the bank, which must include the name of the account holder, the account number, since when you are your customer and the average monthly balance in the account during the last year. The information provided must show the liquidity of the transaction.

• Once it is confirmed that the documents have been received accordingly and the account is open, the client can send the funds for the security deposit (if any).
• We request that the remaining funds (transaction balance) be sent at least 4-5 days prior to closing.

Every time we receive funds from the client, we will notify the parties, sending them a reconciliation of the funds and a copy of the notification received from the bank. If required, we can also provide you with a letter confirming the funds.

For closing, we prepare a document with the distribution of funds that we share with both parties. This document indicates the amounts and bank accounts to which the funds will be distributed, so we need the approval of both the seller and the buyer. Once this document signed by both parties is received (in the same document) and a copy of the deed of transfer also duly signed, we proceed with the disbursements. If the documents are sent before 4:30 pm, the same day the payments will proceed (we have a time limit with the bank). If the documents are sent after that time, the transfers are applied for the next business day. If you require a cashier’s check, we request that you tell us at least two days before closing, as we must coordinate with the bank to prepare it and deliver it.

Remember to evaluate your priorities and needs to choose the best option and above all inform yourself before making any transaction. And if you want to buy a property in Costa Rica, contact me for a free consultation.