Restrictions and Reservations in Property Titles: What Are They?

If you are purchasing property in Costa Rica, you may come across permanent annotations on the title known as “Reservas y Restricciones”—translated as “Restrictions and Reservations.” These legal notes can initially raise concerns during the due diligence process, but in most cases, they do not directly affect your property.

Understanding what these annotations mean and how they impact your ownership rights is essential before proceeding with a real estate transaction.

What Are “Restrictions and Reservations” on a Property Title?

In Costa Rica, a great number of properties—especially in Guanacaste and other rural provinces—carry permanent annotations related to restrictions or reservations. These restrictions were typically imposed on the “mother property” (the original large land parcel) before it was subdivided into smaller lots.

While these annotations are still reflected in the title of newly subdivided properties, they often do not impose any real limitations on current owners. However, each case must be analyzed individually, and a proper review of the Public Registry is necessary to confirm the specific implications.

Why Were These Restrictions Imposed?

During the 1930s through the 1980s, it was common for large properties—particularly in Guanacaste—to have irrational or outdated restrictions imposed by the authorities or landowners. Some examples of these restrictions include:

✔ Prohibiting loud noises during the night.
✔ Restricting certain types of farming or land use.
✔ Limiting construction types or materials allowed on the land.
✔ Imposing conditions related to water usage or conservation areas.

Although these restrictions applied to the original large property, Costa Rican law requires the Public Registry to transfer them to all subdivided lots, even if they are no longer relevant or enforceable.

Do These Restrictions Affect Your Property?

The good news is that in most cases, these restrictions are purely historical and do not impact your ability to develop, sell, or use the land. However, a proper title review must be conducted by a real estate attorney to determine whether:

🔹 The restrictions are still legally enforceable or merely historical.
🔹 The restrictions apply to the entire subdivision or just to specific lots.
🔹 The restrictions affect land use, construction, or resale.

Since the Public Registry does not remove these annotations automatically, it is important to analyze the origin of the restrictions and confirm whether they are legally binding or simply remnants of past regulations.

Due Diligence: How to Handle Restrictions on a Property Title

Before purchasing a property with “Reservas y Restricciones,” follow these steps:

1️⃣ Conduct a detailed title review at the Public Registry to verify the origin and nature of the restrictions.
2️⃣ Cross-check with municipal and zoning regulations to confirm if the restrictions have any legal effect.
3️⃣ Consult with an experienced real estate attorney to determine whether the restrictions limit your intended use of the property.

At LandCo, we specialize in real estate due diligence and can ensure that any annotations on your potential property title are fully understood and legally analyzed before you proceed with your purchase.

Final Thoughts: Are Restrictions a Deal Breaker?

Not necessarily. In most cases, restrictions and reservations are outdated legal remnants that have no impact on the current use of the land. However, ignoring them without a proper legal review could lead to complications later.

If you are considering purchasing property in Costa Rica and have encountered restrictions on the title, contact LandCo. Our experienced real estate attorneys will help you understand and navigate these legal complexities, ensuring a safe and transparent transaction.

📞 For more expert legal insights, visit our blog: www.landcolaw.com/blog