Receiving an expropriation notice raises many questions. This article explains, in general terms, how the process works in Costa Rica and what an independent technical appraisal can contribute. It is not legal advice: decisions about your case are best made with an attorney.
What Is Expropriation?
It is the mechanism by which the State compulsorily acquires private property for a public work or service. For example, a road, the expansion of a public service or an infrastructure project.
The Political Constitution protects private property. It allows expropriation only for a proven public interest and with compensation in accordance with the law. The procedure is governed by the Expropriation Law, which has been amended several times.
What Does Compensation Cover?
In general terms, compensation seeks to reflect the value of the property. To estimate it, factors such as these are considered:
- The land: location, area, topography, current use and prices in the area.
- The buildings: structures, permanent improvements and infrastructure.
- The rest of the property: when only part of a property is taken, the effect on the land that remains may be analyzed.
Other items may apply, such as a business operating on the property. Your attorney can tell you which ones apply to your case.
The law also states what is not compensated: mere expectations and the increase in value created by the very project behind the expropriation.
How the Process Generally Works
- Declaration of public interest. The expropriating institution issues a decision that is notified to the owner and published in La Gaceta.
- Administrative appraisal. The government prepares or commissions a valuation of the property.
- Notice of the appraisal. The owner may accept it or state their disagreement. Deadlines to object tend to be short, and if you do not respond in time the appraisal may be treated as accepted. Confirm them with your attorney as soon as you receive the notice.
- Agreement or court process. If there is agreement, the transfer is formalized. If not, the case may go to court. There a judge sets the final amount after weighing the evidence, including expert reports.
One point worth knowing: the government may take possession of the property after depositing the amount of the administrative appraisal, even while the price is still being discussed in court. That is why it helps to get informed early.
How an Independent Appraisal Can Help
The administrative appraisal is prepared by the expropriating institution. The owner may commission an independent technical appraisal from a property appraiser. That report can be used to:
- Have your own technical reference for the value of the land and the buildings.
- Talk with your attorney based on concrete data and compare the two appraisals.
- Record features of the property, such as improvements, access or the effect on the land that remains.
- Be submitted as evidence in the proceedings, if your attorney considers it appropriate.
The report is a technical input. In court, the judge weighs it together with the expert report ordered by the court and the other evidence. An independent appraisal may agree with the administrative one or differ from it. What it offers is a well founded technical opinion on value.
When to Request It
Since deadlines to respond tend to be short, it makes sense to request the appraisal early, ideally as soon as you receive the notice. At Díaz Peritajes we send the quote in less than 24 hours and deliver the report in 3 to 7 business days. Urgent cases can be delivered in 48 to 72 hours, with a surcharge.
About Díaz Peritajes
Díaz Peritajes is a firm with several property appraisers, founded by Ing. José Alberto Díaz V., a CFIA member since 1982. We prepare property appraisals with an inspection of the site and a digitally signed report, and we cover all seven provinces from our bases in Pérez Zeledón and Curridabat. If you have received an expropriation notice and want a technical reference for the value of your property, contact us or see our judicial appraisals service.
This article is for information only and does not replace the advice of an attorney. Each case depends on its circumstances.