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COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

Costa Rica Title Insurance Can Provide Added Security

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FOR some people, buying a home can be a stressful process. Buying a home in a foreign country can be even more nervewracking.

That’s where title insurance comes in. The industry says title insurance can provide peace of mind during real estate transactions and reduce the risk of investing in property in Costa Rica and other Latin American countries.

How does title insurance work? Those who offer it explain that it guarantees the title of a piece of property against risks the purchaser may not be aware of, such as fraud, forged deeds or mortgages, and disputes about property lines.

THE concept of title insurance was in its infancy in Costa Rica when Stewart Title opened its offices in San José seven years ago. By the time First Costa Rican Title & Trust opened an office here just over a year ago, many foreign investors were purchasing the service.

Today, Stewart Title Latin America general manager Christopher Hill estimates that 70% of foreign investors in Costa Rica purchase title insurance, and  the service is becoming increasingly popular among Costa Ricans.

“In our first four or five years, we were far and away driven by foreign buyers, but the Costa Rican side is growing,” Hill said. “Now Costa Rican clients make up about 30% of our business, versus 5% before.” Darrylle Stafford of First Costa Rican Title & Trust agreed the industry is growing.

“We think it will become an institution, just like in the United States,” he said. ONE of the reasons for the increased interest of Costa Rican buyers is concern over fraud in the National Registry, according to Hill. In recent years controversy has grown over the possibility that names are being changed illegally on deeds and resold to third parties, Hill said.

Registry officials and corrupt attorneys and notaries often are involved in the fraud (TT, Feb. 21, 2003). Scams can also include using illicitly acquired property as collateral for bank loans.

Because of this, Stewart Title has begun to cover property titles not only for problems before ownership, but also for problems the titles may have in the future. Hill hopes the presence of a policing force in the market such as Stewart Title may help reduce the number of scams and fraud overall.

“IT is a small market, and the presence of a title company here I think, to a certain degree, has forced some of the attorneys who may have been willing to cut corners in the past to do the right thing,” he said.

In an effort to simplify the process of purchasing property as much as possible, title insurance companies are also offering a package of services to large developers. These developers are then able to automatically include title insurance when selling individual homes.

Costa Rica’s title insurance companies also offer their services outside of the country. Stewart Title Latin America provides services to every country in Central America and the Caribbean except Nicaragua.

And First Costa Rican Title picks up where it has left off, with plans in the works to open an office in Nicaragua. Hill said Stewart Title does not have an office in Nicaragua for two reasons.

“It is very difficult to obtain accurate property title information; it is all based on a chain history and if documents are missing it is very difficult,” Hill said. “The other issue is that the country is still seeking political stability.”

REPRESENTATIVES of First Costa Rican Title, however, think the time is right to set up in Nicaragua. Staff member Ulises Obregón, a lawyer from Managua, will facilitate their endeavor. The company already runs a non-profit education program in Managua.

Stafford said that because title insurance covers against many large risks – including problems such as illegal signatures, expired powers of attorney and deeds incorrectly signed by spouses – the cost is relatively low.

The cost of title insurance varies between .5% and 1% of the cost of the property.

Highway Plans Pave Way to Speculation

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“IF you build it, they will come,” intoned Kevin Costner in the film Field of Dreams. But in the context of Costa Rica, you can almost hear Jerry Maguire’s Cuba Gooding Jr. crying out, “Show me the money!”

Recent announcements by the Costa Rican government that three long-awaited highway projects might finally get off the ground this year drew a mix of optimism and skepticism from area real-estate experts.

“Project is a big word,” said Ivo Henfling of Go Dutch Realty, part of the American-European Realty consortium.

“The promise is not enough.”

The endeavors in question whose jump starts appear most imminent are the expansion of the 68 kilometers between San José and the western Central Valley city of San Ramón; the construction of a new 30-kilometer highway between San Ramón and Ciudad Quesada in the Northern Zone; and completion of 77 kilometers between San José and the Pacific port of Caldera, via Orotina (TT, Jan. 23, Feb. 6).

The government is presently evaluating a bid for construction of the San Ramón highway. Funding has been acquired for the other two projects.

“POSSIBLY, yes, it is going to increase prices,” said Emilia Piza, president of the Costa Rican Chamber of Real Estate Agents. However, she points out, two of these projects have been on the drawing board for three decades. “We’ll have to see.”

Even though the Caldera highway has been “stewing for awhile,” Les Nunez of RE/MAX First Realty acknowledged there already has been an effect on prices, most notably in the far-western suburb of Ciudad Colón, at the end of the present

Próspero Fernández Highway

.

The government has announced that highway construction will begin in July and be completed from Ciudad Colón to the Pacific coast by the time the President Abel Pacheco leaves office in 2006.

“The last three years were the first wave, and much of the land has been spoken for already,” Nunez explained, referring to the 2001 building of three bridges being connected by the new highway. He adds that speculators started moving in about five years ago.

SOME of the land remains in coffee growers’ hands, according to Nunez. They’re waiting to sell when the price is right, he said, calling it a phenomenon of “highest and best use.”

Nunez said land near Ciudad Colón now sells for $25-40 per square meter that sold for $8-10 per square meter three to four years ago.

Land in the city’s Barrio Trinidad is now advertised for $65 per square meter, he said, and some land in the vicinity is being advertised as high as $140 per square meter.

Nunez projected a 10-18% price increase in coming years in Ciudad Colón and nearby Atenas, situated between the Caldera highway and the San José-San Ramón road.

The prospect of easing the commute into San José and out to the beach – once complete, travel time to the coast is expected to take an hour – will be a strong selling point in real estate listings for both communities.

HENFLING remains cautious, however. “Everybody talks and raises prices. But does anyone want to buy?” Henfling explained that the market has responded this way before in response to highway project announcements. Once people realized construction was not going to proceed, land values dropped again.

“It’s a gamble, just like going into the casino,” he said.

Another area poised to benefit from the coastal highway construction is the Central Pacific beach community of Jacó.

Henfling said development there will be more likely to occur in response to ventures funded by the private sector than announcements by the government of impending projects.

Real estate took off in Jacó with the construction of the Los Sueños Marriott hotel-marina-condominium-golf course complex, he said. An outside private initiative always instills more confidence in Costa Rica than a government announcement, he added.

Still, Henfling admits that this time, the road construction projects look more certain than they have in the start-and-stop days of the past.

 

Construction Fair Coming

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 THE fifth annual ExpoConstrucción –the country’s largest construction and home furnishings fair – will take place next week at the Herradura Hotel and Convention Center, northwest of San José along the highway to JuanSantamaríaInternationalAirport.

The event, set for March 3-7, will fill up the Herradura’s 2,500-square-meter convention center with stands from more than 200 local and foreign companies representing all facets of construction and remodeling for homes, offices and industries.

ExpoConstrucción kicks off Wednesday night with a gala inauguration. Stands will officially open Thursday at noon and remain open until 10 p.m. Those same hours will apply to Friday. The fair will be open longer on the weekend – from 10 a.m. to 10 p.m. on Saturday and from 10 a.m. to 8 p.m. on Sunday.

THE event’s stands will focus on three main areas – construction (machinery, technology providers, materials and construction implements and building in general), home furnishings (floors, walls, ceilings, bathroom and kitchen accessories, water heaters, illumination, and locks) and real estate (real-estate developers, projects, financing and mortgaging options for properties).

Serious house hunters and home-repair enthusiasts may want to arrive at the event early because they are bound to run into crowds. Last year’s ExpoConstrucción drew approximately 15,000 visitors.

The Costa Rican Construction Chamber and the Inter-American Construction Industry Federation, the event’s organizers, expect attendance to surpass that this year.

“Each year there are more companies. This year, we’re fully booked – even the smallest corners of the convention center have been rented to participating companies,” said Mónica Múñoz, of Congrex-Costa Rica, the firm in charge of coordinating the event.

A wide range of free educational conferences on issues related to the construction sector will be offered to guests. Conferences will include “characteristics, techniques and correct uses of low-voltage cables”, “organic preservation of wood,” “houses and housing developments,” “floral decorations for different environments,” “property maintenance and subcontracting,” “Costa Rica’s seismic code,” and “accessible credit for housing.”

As a special bonus, George Hedley – the legendary construction entrepreneur who, armed only with a college degree, $500 and a used orange Datsun pickup truck, was able to build a $50 million company in just seven years – will give a two-part seminar on managing a successful and profitable firm.

The March 4 seminar will be divided into two parts – “how to understand financial management in a simple manner” and “how to make your business generate profits always.” The cost of attending one conference is $150, $270 for both.

Reservations are required. Entrance to the fair cost ¢1,000 ($2.35) per person. For info, see www.construccion.co.cr or call 204-7204.

 

Central Valley Prices Vary by Area

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THE real estate market in the Central Valley is looking stronger than it has in years, according to industry representatives. Any trace of a post-Sept. 11 slowdown has all but disappeared in the area, say real estate brokers, and prices continue rising steadily.

“Things are certainly on the upswing again, based on the last quarter of last year,” said Les Nunez, president of RE/MAX First Realty in San José. “Things are starting to take off again. We certainly have a lot more foreigners coming back into the country.”

One indicator of the increased foreign interest in real estate is participation in the Association of Residents of Costa Rica. Real estate seminars held by the organization last year had an attendance of about 30 people, but last week’s session drew 65, Nunez said.

The population of foreign residents is not only increasing in number, but also decreasing in age.

“EIGHT years ago the market was all retirees, but now we have some of the people who made it in the dot coms, and others who have just made some money and decided to cut out of the States early,” he said. “So now you find a lot of people in their 40s or younger. Some still work on projects for their employers up north, in technology or graphics. So it is a far more flexible crowd.”

Finding anything under $100,000 in the neighborhoods where most foreigners want to live is becoming increasingly difficult, particularly in gated communities, said Nunez, whose company works predominantly with foreign buyers.

Real estate appraiser Angela Jiménez says prices are rising faster than they should be in some areas of San José. But Emilia Piza, head of the Costa Rican Chamber of Real Estate Agents, said she believes home prices in the Central Valley are headed toward a period of stability.

THE price of a 190-square-meter (2,045-square-foot) condominium in a gated community with two bedrooms and two bathrooms varies greatly in price from area to area, according to Nunez.

The asking price in Escazú, an upscale neighborhood west of San José, would average about $200,000, he said. The same condo in San Pedro, on the east side of San José, would be about $150,000 or more, while in Heredia, the provincial capital located at the north end of the Central Valley, the price would probably range between $90,000-120,000 and Alajuela, northwest of San José, would be about $10,000 less than Heredia.

Escazú is and has been by far the most expensive and popular place to live for citizens from the United States. Construction of new condominiums in Escazú and Santa Ana, farther west, has been booming, Jiménez said.

She said she is worried about the effects so much development will have.

“I can tell you that in Escazú something is going to happen in the short term with so many condominiums being built. I don’t think the services are being taken into consideration – traffic, water, municipal services…” she said.

PRICES in Escazú are generally 50% higher than elsewhere, Jiménez said. For example, $100,000 can buy a 150-squaremeter (1,600-square-foot) home on a 300-square-meter (3,230-square-foot) lot in Sabanilla, Heredia, Ciudad Colón and Alajuela, but in Escazú a similar property sells for about $150,000.

A 200-square-meter (2,150-squarefoot) home on a 500-square-meter (5,380-square-foot) lot would cost $200,000 in the other neighborhoods and $300,000 in Escazú.

Piza said that in her experience, European investors often prefer less warm temperatures than those in Escazú, and turn to other areas.

Communities east of San José, such as San Pedro, San Bonilla and Tres Ríos, also are becoming increasingly popular, according to Nunez.

IN Lomas de Ayarco, east of San José and south of San Pedro, a wide range of homes can be found. For example, a look at recent real estate postings at www.therealestate.net reveals a 93-square-meter (1,000-square-foot) house with two bedrooms and two bathrooms in a gated community of Lomas de Ayarco costs $55,000.

A 232-square-meter (2,500-squarefoot) two-story condominium with three bedrooms and two and a half baths in the same area costs $160,000.

And $450,000 will buy a 418-squaremeter (4,500-square-foot) home on a 1,278-square-meter (one-third acre) property with three bedrooms, two baths, maid’s quarters, office and swimming pool with a guesthouse in north Lomas de Ayarco.

“IT is difficult to give a price per square meter, even in general, because it depends on so many things, not just the neighborhood, but the street, the house next door…” Piza said.

Whether the home is on flat terrain or a hill can also make a difference. When it comes to paying for land, the more you buy the cheaper it is, Jiménez points out. For example, in the hills of Escazú, one could expect to pay $50 per square meter for a piece of land with a view measuring more than 5,000 square meters. But a property that is more than 9,000 square meters would be priced closer to $25 per square meter.

The cost of homes in Costa Rica varies widely not only because of the land, but because of the wide range in price and quality of materials used, Jiménez said.

“And the cost of some materials depends greatly on the international market because they must be imported,” she said.

WHILE Costa Rican real estate does not have the same dramatic swings that it can have in the United States, few agents are ready to speculate on the future.

“It could get better, it could get worse,” Piza said. “It depends on the stability of the country and even more what happens with globalization, which will have an enormous impact.”

 

Hordes in Argentina Unemployed, Desperate

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BUENOS AIRES, Argentina – Though the economy finally is picking up after the worst financial crisis in Argentina’s history, fear is widespread that this country’s middle class will never recover, and that its working class will continue disintegrating into a mass of desperate poor.

Workers wonder if they will ever again see the jobs with steady hours, decent wages and solid benefits that made Argentina the economic pearl of Latin America.

Their doubt gnaws at this once-proud country, creating a collective wariness as potentially profound as the fallout in dollars and cents.

“THE anarchy of two years ago has subsided,” said Augusto Salvia, a sociologist at the Catholic University of Buenos Aires, referring to the riots and demonstrations that rocked Argentina after the crash. “But among the unemployed and underemployed, there is still widespread pessimism about the future.”

Thanks to decades of economic prosperity and social mobility, more than two-thirds of Argentina’s work force was middle class by the 1990s – a stunning contrast to most of Latin America, which is divided into a wealthy few and a poor majority.

BUT after years of free-market policies and government mismanagement, the economy took a nosedive in late 2001 and early 2002. The country defaulted on billions of dollars in loans, the peso plummeted by 70% and half of those employed ost their jobs.

Despite 8% economic growth last year, half the country lives below the poverty line, and more than a third of the  labor force remains unemployed or underemployed. Of 1.5 million jobs created since the crash, Salvia said only about 300,000 are full time with formal contracts; 800,000 are part-time, government- sponsored work-for-welfare posts.

“ARGENTINAis still almost at rock bottom,” said Alan Cibils, a Buenos Aires-based economist who works with the Center for Economic and Policy Research of Washington, D.C. The jury is still out, Cibils said, on “whether the country will return to a Third World economy.”

 

Plastic Surgery Becomes Spectacle

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ROME – Italy is a country, let us not forget, where the prime minister recently took a month off, shelving economic crises and regional political demands, to have a face lift.

So it would seem a natural fit that Italian TV viewers be treated to a weekly “reality” show on plastic surgery, with contestants who are given nose jobs, tummy tucks and breast lifts in fullfrontal detail. But the show, “Scalpel: No One Is Perfect” – an over-the-top version of the U.S.’s already over-the-top “Extreme Makeover” – seems to be a bit too much for many here, even for an audience accustomed to rather risque TV fare, full of buxom blondes and silly game shows.

FROM the medical community to the Roman Catholic Church, groups have raised their voices in protest over what they call an exploitative misrepresentation of surgical complexities made to look simple. Participants are demeaned, and aesthetic alteration is portrayed as a panacea, the critics charge.

Nonsense, say the show’s makers, who argue that they are helping people who could not otherwise afford cosmetic surgery.

“Scalpel” premiered last month on a network owned, appropriately enough, by Berlusconi, part of the vast media empire that has made the prime minister one of the richest men on the planet.

The show goes more or less like this: Platinette, Italy’s most famous drag queen, is one of the two hosts. Outfitted  in a platinum bouffant wig and a tomatored caftan over his very ample frame, he saunters onstage and extols the virtues of beauty, both external and internal.

His improbable co-host is Irene Pivetti, former speaker of the lower house of Parliament and a onetime conservative paragon of traditional Catholic values. Pivetti left politics a few years ago and became a regular on TV talk shows.

PIVETTI appears with spiky, closecropped hair, huge spangly earrings and tight-fitting black spandex. Each hour-long program features seven or eight cases, culled from “thousands” who responded to ads last summer calling for anyone interested in free physical improvement.

But a leading association of plastic surgeons said it was horrified that serious medical procedures such as liposuction were being made to look like something you can do at the beauty parlor, right along with a pedicure.

The show promotes unnecessary operations and creates unrealistic hopes, said the 800-member Italian Society of Plastic, Reconstructive and Aesthetic Surgery in a statement.

 

Sexy Carnaval Floats Ruffle Church’s Feathers

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RIO DE JANEIRO, Brazil– Millions of exuberant revelers poured onto the streets of Brazil on Monday as the country’s biggest block party, the annual bacchanal known as Carnaval, kicked into high gear amid marching bands, men dressed as brides and a kerfuffle over sex on parade.

From Salvador in the northeast to this famous beachside city in the south, Brazilians took advantage of a national holiday Monday to press on with celebrations that began over the weekend and that will stretch through most of Wednesday, when the Christian period of Lent begins.

HERE in Rio, all eyes are riveted on the lavish late-night parades in the specially designed Sambodrome stadium, where top samba clubs display spectacular floats and dancers wearing elaborate costumes – or hardly anything at all – in a competition for Carnaval’s coveted championship.

The talk of the town has been the entry by the Grande Rio club, whose effort to put the carnal in Carnaval has provoked the wrath of the Roman Catholic Church. The club’s theme, “Let’s put on a condom, my love,” celebrates the joys of safe sex and has earned the unusual approval of the United Nations’ AIDS organization.

But the archbishop of Rio declared his outrage over two floats with huge figures depicting couples practicing techniques in the Kama Sutra and Adam and Eve doing what, according to the Bible, gave rise to the rest of humankind.

THE archdiocese called the figures “indecent images” that would “disturb the peace” of Carnaval, which features nearly naked men and women gyrating to the deafening sounds of samba music.

The controversy highlighted the contradictions that reign in Brazil during Carnaval – and during the rest of the year. Bowing to the church’s objections in this predominantly Catholic nation, state officials ordered Grande Rio to cover up the offending sculptures.

Yet, the federal health ministry launched a condom giveaway campaign during Carnaval, and many Brazilians were left wondering what the fuss was about, especially here in a city that prides itself on its reputation for skin and sin.

Grande Rio’s artistic director, Joaosinho Trinta, dismissed accusations of lewdness.

 

Vatican Report Criticizes Church’s Policy on Child Abuse

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VATICAN CITY – A draft report released Monday by scientists commissioned by the Vatican harshly criticized as potentially dangerous the U.S. Catholic Church’s policy of removing priests from the ministry for committing one act of child abuse.

The report, the result of a conference held here last April that featured eight non-Catholic experts, recommended that the so-called zero tolerance policy be reconsidered.

A Canadian expert, William Marshall, described zero tolerance as an “abdication of responsibility” that could discourage offending clerics from seeking treatment.

Moreover, he wrote, “Such a policy is certain to have disastrous consequences, including the clergy sex offender committing suicide or re-offending.

“All offending clerics should be offered treatment and then reintegrated as much as possible into the normal aspects of life.”

Zero tolerance “does not function to prevent these crimes,” Hans-Ludwig Kroeber, director of Berlin’s Institute of Forensic Psychiatry, told the symposium.

“It is better to domesticate the dragon. If all you do is cut off its head, it will grow another.”

The 220-page report, called “Sexual Abuse in the Catholic Church: Scientific and Legal Perspectives,” said that public opinion had put the church under pressure to move with “destructive severity.”

“ALTHOUGH until now the phenomenon of abuse was not always taken seriously enough, at present there is a tendency to overreact and rob accused priests of even legitimate support,” the report says.

A Vatican spokesman said the findings might provide a basis for future policy. It will be published next month and distributed within the church hierarchy and to bishops around the world.

“It will be taken into consideration,” said Ciro Benedettini, a Vatican spokesman.

 

Haiti Spins Toward Civil War

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Newsday – With 80% of Haiti’s population under the poverty level, agriculture in ruins, nearly three in four workers jobless, and drug lords controlling parts of the countryside, even onetime supporters of President Jean-Bertrand Aristide began calling for his ouster.

Last year, a coalition of students, opposition parties, clergy and business leaders known as the Democratic Platform began staging increasingly larger demonstrations, calling for him to step aside. Aristide responded by embracing some of the tactics of the Duvaliers.

He politicized the 4,000-member Haitian National Police and diverted government money to violent gangs, who attacked anti-Aristide demonstrators and murdered journalists critical of the government.

He has vowed to complete his term, which runs until 2006, and is doing little to curb armed attacks by his supporters against the demonstrators.

GANGS once aligned with Aristide have turned against him, drawing former soldiers and Aristide opponents into their fold.

On Feb. 5, rebels took Gonaives, a town astride the main road leading north from Port-au-Prince, effectively cutting the country in two and threatening the north with starvation.

With Haiti spinning toward civil war, the United States pulled Peace Corps workers from the country last week and warned U.S. citizens to leave as soon as possible.

On Sunday, rebels captured Cap-Haitien, the nation’s second-largest city, after just a few hours of fighting. Some boasted that their next target was Port-au-Prince, Haiti’s capital.

 

Salvadoran Troops Return

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SAN SALVADOR (AFP) –Hundreds of Salvadoran soldiers with the Cuscatlan Batallion reunited with their families this week after completing a six-month mission of support for the occupying forces in Iraq.

A hot sun and a special ceremony with President Francisco Flores and hundreds of friends and family members greeted the 360 arrivals at the Special Forces Command Base outside San Salvador on Wednesday.

In his welcome-home speech, Flores applauded the mission and the troops, whom he called “heroes.”

“WE knew the dangers of the mission… but now we applaud the job that you have done and we know that now you will be remembered as heroes for having helped the Iraqi people,” Flores said.

Tears of joy flowed after the speech, when the soldiers were ordered to “break ranks” and go meet their family members.

Santos Elías, 24, saw his daughter Marjory for the first time. She is five months old and was born while he was on duty in Iraq. Visibly excited and teary eyed, he whispered “thank you for this beautiful girl,” to his wife Yanira García, 21.

“She was the handkerchief that wiped my tears while you were away,” García responded.

MAYOR Andrés Bustamante, official Chief of Operations of the battalion in Iraq, said, “Like all military missions, we knew that we were exposed to certain risks, such as attacks. Iraq was an enormous experience for all of the personnel, but we also knew that it was a great challenge to be in an unsafe country when we arrived (last September) and it still is, but we had the luck that the Iraqis in the zone where we were, were really friendly.

They knew how to accept us and appreciated our work.”

Between hugs from his wife, Lieutenant Coronel Sabino Monterroza commented that in Iraq “there is still much to do… the people are in great need.

They lack food, water, they need greater safety, but these things will come little by little.”

THOSE who returned will be relieved by 380 who will be positioned in the Iraqi city Navaf for six more months.

The Salvadoran troops will integrate with troops sent from Honduras, Nicaragua and the Dominican Republic in a brigade called “Plus-Ultra” under the command of Poland and Spain.