South Pacific Costa Rica Real Estate Co-Brokering Policy
Because of our commitment to business ethics and adhering to the law in Costa Rica for selling real
estate, we have specific standards we follow in working with other brokers, whether they work abroad or live and work in Costa Rica. These guidelines – the South Pacific Costa Rica Real Estate Co-Brokering Policy – are general in nature as to these standards, and include specific information as to how we pay and structure our co-brokering commissions.
South Pacific Costa Rica Real Estate does work with both licensed and unlicensed brokers in Costa Rica. Until the law requires ALL brokers to be licensed (and Costa Rica enforces that law), many people selling real estate in Costa Rica will remain unlicensed. The bottom line is that at this point in time we do work with ALL brokers. However, we do have certain requirements from a broker in order that they receive their commission from South Pacific Costa Rica Real Estate on a co-brokered deal.
Market rate commission for selling a property along the Costa Ballena or Southern Pacific coast in Costa Rica at this time is 8-10%; however, we’re doing something different as part of our market launch. We’ve lowered our sales commission to 6.5% through year-end 2017.
In general terms, a co-broker deal on one of our direct or exclusive listings will generate a shared commission fee. Since every listing has its own idiosyncrasies, we will confirm with the co-broker (at the time they bring their client) the shared percentage which they can expect to receive for that particular listing. This is confirmed in writing via a Memorandum of Understanding (MOU) between South Pacific Costa Rica Real Estate and the co-broker, once the co-broker’s offer to purchase has been accepted by our client.
We do require that the co-broker sign this MOU within 48 hours of when their client’s purchase offer has been accepted by our client, in order that everyone is crystal clear on the business arrangement. (Please note that co-brokers who do not comply with this requirement will not be considered eligible for a shared commission.)
Co-Broker Commission Rates during our 2017 Lower Sales Commission Promo
To keep things simple, we’re spelling out our current commission rate while our 2017 Sales Promotion (with a lower 6.5% sales commission) is in place.
- Brokers in-country with an active license through CCCBR or who have an active legal work permit in Costa Rica – 3.0%
- Brokers who do not have one of the above (even if they have a legal residency permit) – 2.0%
- If you’re outside the country, please contact us so we can confirm your commission rate.
Co-Broker Requirements for Collecting Their Commission
First, see prior paragraph about the required MOU which must be signed by the co-broker at the time their client’s offer is accepted by South Pacific’s client.
Second, at least one week prior to the real estate closing, our requirement for all co-brokered relationships is that the co-broker (licensed or not) – provide to our business office the following documentation.
- A Factura Timbrada (from Hacienda or Costa Rica’s I.R.S.) in your personal name or in the name of your Costa Rica corporation submitted to our company name for the amount of the commission. This MUST be an original; copies will not be accepted.
- A full-color of your photo page of your passport or Costa Rica residency visa (cedula).
Again, please note that if these documents are not provided to South Pacific Costa Rica Real Estate at least one week prior to the closing, the commission check will not be given to the co-broker at closing; it will be delayed. (Co-brokers who cannot or will not provide these legal documents to South Pacific related to their client’s deal will not receive any shared commission.)
Please note – all Costa Rica brokers – commissions coming out of South Pacific Costa Rica Real Estate will be provided via local bank transfer to local Costa Rica accounts. We do not engage in transferring real estate commissions outside the country, period, if you are in-country and are working in Costa Rica. (If you feel you have a valid exception, please talk with us.)
International Brokers Referring from Abroad
If you live and work abroad as a licensed broker and wish to collaborate with us on referrals, please contact us about that policy. We welcome your contact!
If this page does not answer all your questions about our Co-Brokering policy, please contact us.
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Our commitment to conducting legal, licensed, ethical real estate in Costa Rica is paramount. For more about our firm stance on ethics, go here. If you wish to learn more about why we feel it’s important to be licensed as a real estate broker in Costa Rica, go here.