Boomers In Costa Rica's Real Estate & More

Architects Fees and the Process

Architects are a key part of your building process, of course, but in Costa Rica, it's good to know how they work here, so below is a summary of the basic process.

All architects and engineers in Costa Rica must be licensed by the Costa Rican Association of Engineers and Architects (Colegio Federado de Ingenieros y Ingenieros y Arquitectos-CFIA. This governing body establishes the fee schedule that can be charged by its members. Most fees are based upon a percentage of the value of the construction project. According to the regulations of the CFIA (Reglamento para la Contratación de Servicios de Consultoría en Ingeniería y Arquitectura), the involvement of a licensed architect/engineer in a construction project is separated into two phases. Phase 1 is construction plans and permits, and Phase 2 is control and execution of the project.  Both are very important.

Phase 1. Construction plans and permits. This phase is further subdivided into several separate professional services that can be provided to the client by the architect/engineer. The percentages cited below are those that the CFIA has established as minimum chargeable fees.  Many architects use these fees.  If your architect wants to  charge you considerably more, find out why!

Preliminary studies (estudios preliminaries): 0.5 percent. These studies may or may not be required, depending on the scope of the project but  most likely they will be needed.

Preproject design (anteproyecto): 1.0 to 1.5 percent. At this point, the architect will discuss with the client the client's construction requirements. With this information, the architect/engineer will prepare drafts of the proposed construction project for review by the client. These drafts should include site planning and preliminary work drawings. When you contract for this service be sure you agree with your architect/engineer beforehand on what he or she is going to provide you.

Construction plans and technical specifications (planos de construcción y especificaciones técnicas): 4.0 percent. This is one of the most important steps in the overall construction project since execution of the project will depend upon the quality and accuracy of your construction plans. Once you and your architect/engineer have agreed on the layout and design of the project, she or he will begin drafting the plans. In Costa Rica a complete set of plans should include a site plan, distribution plan, elevation and transversal and longitude perspectives, roof design and drainage, design of footings and support beams, structural plans, electrical design, mechanical and sanitary system design, as well as a plan that details all of the interior finishings of the construction. Budgeting (presupuesto): 0.5 percent for global budgeting; 1.0 percent for itemized budgeting. Here the architect/engineer prepares a materials list based upon your construction plans and prepares a construction budget for you.

Phase 2. Control and execution. This stage involves the actual construction and project supervision. The regulations authorize three kinds of supervisory tasks, each of which requires a larger time investment from the architect/engineer. Inspection (Inspección): 3 percent of total construction value. Here your architect/engineer will visit the construction site at least once a week and will inspect it to ensure that the plan specifications are being followed by the general contractor. They will also verify the quality of the materials being used and review invoices being presented by the general contractor.

Supervision (Dirección técnica): 5 percent. This requires more direct involvement by the architect/engineer in the day-to-day operation of the project.

Administration (Administración): 12 percent. Here, the architect/engineer takes complete responsibility for the execution and completion of the project.

The option you choose will depend upon the type of project involved, the reliability of your builder/general contractor, and the amount of time you are willing to dedicate to the construction project. In total, Phases 1 and 2 can range from 9 percent to 18 percent of the estimated value of the construction project, depending on the amount of services required. It is common practice to negotiate fees with the architect/engineer. Most, of course, will be eager for your business and depending on the scope of the project will be willing to work out an agreement suited to your needs. 

Before you sign any contract, be sure that you understand the fee structure and know exactly what is and is not included in the fee. Also, you should define your architect's responsibilities very clearly so there are no surprises on either side. This happens often in Costa Rica and you want to avoid it!

Have fun!

New Web site for Baby Boomers!

I came across this online baby boomer magazine, called "Baby Boomer Magazine Online." It has a good amount of information on all topics related to boomers including travel, retirement, health care and much more.

So check it out here: Baby Boomer Magazine Online

We all hate legal stuff, but....

Working with attorneys is just a fact of life in Costa Rica, as it anywhere.  However, in Costa Rica, you find yourself using attorneys more often such as when purchasing a used car and most importantly when buying a home or piece of land.  Here are a few things to consider when selecting an attorney:

1. The attorney should be licensed to practice in Costa Rica.  He should also be a notary public as well an attorney as NP's are as important here as an attorney.
2. If possible, it's helpful if the attorney speaks English. It just makes it easier, particularly for complex legal documents.
3. The attorney should be willing to give you references.  Like any professional, check out him or her!
4. Find out who the attorney represents.  If a land developer, for example, wants you to use his attorney, check his attorney but better still get your own attorney to represent you at closing.  It's not a smart idea to use the seller's attorney because his best interests are the seller's, not yours.
5. Your attorney should be able to prepare legal documents in English. Costa Rican law allows for legal documents in English.  If your attorney cannot prepare documents in English, consider getting a different attorney!
6. Crooked attorneys!  Yes, there are many bad attorneys here.  The "Colegio de Abogados" (or "Lawyers Association") maintains a list of attorneys currently reprimanded, temporarily disbarred or even permanently disbarred from practicing law.
7. When buying property, have your attorney send you an itemized list of closing costs before you send down the balance of your payment for your property. You should know in advance what you need to bring to closing, what part of closing costs you will be paying and what part the seller is paying.

While not all that fun, taking some precautions up front can save you a lot of time, headaches and perhaps even money!  So, know your attorney well!

Wow!  What fun tours!

We have had some terrific couples for our well-known "Boomers in Costa Rica" tours (Boomers Tours!) in the past few months!  It's a great feeling--particularly for people who are visiting here for the first time--to introduce people to this wonderful country to and help them find places to live and to network with other people.  It's also great when they oftentimes end up as neighbors right here in wonderful San Ramon!

So, if you have some time, join us on a tour.  We still have a few spots left of our September tours.  Just check out our site at: Boomers in Costa Rica Tours!

Great Online Travel Reference Site!

While some of us, including this blogger, live in Costa Rica, like anyone else, we tend to travel about, exploring new cities, new countries, and even new continents!  I came across a great reference on travel sites, including an article the "Top 50 Travel Sites--you've probably never heard of."  To read the article and to check out some pretty cool travel sites, click here: Top 50 Travel Sites

Enjoy!

Roads, Roads, Roads!

People living in the United States, for the most part, take their roads for granted.  Generally, they have nicely paved roads leading to their homes and equally as nice, if not nicer, driveways.  Here in Costa Rica, paying attention to roads in the area where you might buy a home, or build one, is important.  This is particularly true in planned developments.  So, before plunking down good money for a piece of land, ask the developer (or seller of a single piece of land), about what s/he plans to do about the roads in the community.  Will they be paved? Dirt? Dirt and rock (often called "lastre" roads)?  Do the roads meet the minimum requirements set by the local authorities (often they need to be 7 meters across depending on the area). 

Also, find out who pays for the maintenance of the roads.  You don't want to find out a year or two later that your road needs repair and there is no agreement in place to have them fixed--and you have to figure out perhaps with your neighbors, how to get them fixed.

Don't forget to ask about road drainage!  You want to make sure, particularly during the rainy season, that your road drains well!  You don't want it to flood or worse, wash away every rainy season and then have to have it rebuilt!

So, when buying a lot and/or home, definitely ask about the roads!
.

New Careers for Baby Boomers!

Many people over 45 or 50, or even older are starting second careers.  They retire early and find that they still want to work.  Costa Rica is a great environment for starting a new career, particularly a new business because the government is very business-friendly here.  Here is a good article from MSN on starting a new career:

Entrepreneurship for Baby Boomers

Rainy Season Property Viewings!

Unfortunately, looking at properties in Costa Rica during the rainy season (roughly May through November) can be a little difficult, particularly in the Central Valley.  This blogger has walked through mud three feet high, got his car stuck on a property (but fortunately got out after one-half hour of trying) and has been drenched with rain many times.  However, here are a few tips for looking at properties this time of year, particularly properties having supposedly stunning ocean and/or mountain views:

1. Go early!  Typically, early to mid-morning will be fairly sunny and you should be able to see views of the ocean, mountains or valleys.
2. Go later!  It also doesn't hurt to go back to a property you think you like later in the day as well as see what it's like during the rain.
3. Ask neighbors about the weather. Find out if the area has typically more or less rain in the rainy season, is more cloudy or not, and how warm or cold it gets during various times of the year.  Keep in mind some areas are in cloud forests so sunshine is often limited, even in the dry season sometimes.
4. Always ask about drainage for a house and the land itself.  You don't want to get stuck in an area that floods easily.
5. Bring raingear.  Comfortable shoes you don't mind getting muddy would be good too.
6. Keep an open mind! You'll likely see properties in the worst weather this time of year and if it's not so bad, just think, you'll love it the rest of the year!

Happy Hunting! 

For a great overview of real estate options in the Central Valley and to learn more about living in Costa Rica, consider a "Boomers in Costa Rica" tour.  We still have a few spots open in July and August. More information can be found on the website here: Boomers Tours--Click here!