Introduction and Market Overview
Richard Bexon
Good afternoon, guys, and welcome to episode 288 of Costa Rica Real Estate and Investments with me, your host, Richard Bexon. I think we’re well on to four years now of doing the podcast, which is absolutely insane that once a week I’ve been doing—well, I suppose once a week. Sometimes I get two done a week and then skip the next week. It depends on my travel plans. But four years of doing this podcast, guys, and hopefully we’ll have another four years in me to keep giving you all this information.
I know a lot of you listen to it out there. And again, if there’s any topics that you do want us to cover, please do let us know. There’s a lot of movement kind of happening over here. It’s definitely a buyer’s market. I’m starting to see some developments start to suffer. We can see prices dropping. There’s a lot of opportunity out there if you really know what it is that you’re doing, guys.
And based on that and some recent news, today we’re going to be talking with Valeria Aguiluz. She’s the business developer for TLA Escrow, which is a U.S.-based and registered escrow service that serves all of Latin America. Today we’re going to be talking to her about the importance of escrow.
Based on recent news, unfortunately, from what I understand, an actual lawyer who had an escrow company walked away with millions of dollars of clients’ money up in Guanacaste. So we’re going to be talking about how to tell a good escrow from a bad one and things that you really need to do.
So this is a pretty important podcast for anyone that is looking to buy here in Costa Rica, because typically it is done with escrow if you’re not living here. And it’s always better, to be honest with you, done with escrow. It’s always nice to have a third party that just basically follows the sales purchase agreement. It’s the way that I even do it, and it’s the way that you should be doing it as well.
Remember, guys, if you are looking to do anything here in Costa Rica—if you are looking to invest, buy real estate, develop here, or just really looking to potentially relocate here—feel free to reach out to us. No obligation. I know a lot of you, on every single podcast, kind of email us, have conversations with me or Jake. Again, the emails actually come to me. People sometimes are like, Rich, how do you have time to do this?
But again, I’m a sucker for helping people. I always want to make sure that they do the right thing here in Costa Rica, as I believe the tide rises, all boats rise. So you can contact us at info@investingcostarica.com. That’s info@investingcostarica.com.
All the links are down in the description below the email. And there’s also a link that you can click to book a 15-minute conversation with us. Actually, I think it’s 30 minutes, guys. It used to be 15. I think it’s 30 minutes. So anyway, you can click that link and then you’ll have a conversation with us here in the office.
We’re more than happy to help you, kind of guide you, point you in the right direction, use our Rolodex here to kind of handle that out. As again, nobody loses money on our watch, guys. So anyway, let’s get straight into the podcast.
Good afternoon, Valeria. How are you doing?
Valeria Aguiluz
Hi, Richard. So nice to connect with you once again. Thank you for having me on your wonderful podcast.
Richard Bexon
Not at all. It’s an absolute pleasure to have you here. Well, Valeria, look, I mean, I think we’re going to touch on the topic today of escrow, just because of the recent news here in Costa Rica, which is—again, I do not know how it hasn’t been publicized somewhere—but we’ll get to that in a minute.
But, you know, I mean, 2025 was politically and economically volatile. I think 2026 is looking even more volatile. But from your perspective, what do you think is going to happen in 2026 in Costa Rica?
Economic Outlook for 2026
Valeria Aguiluz
Well, Costa Rica remains an attractive market for everybody. But right now we are in a situation where people are being more cautious. We will not see the greatness in sales that we saw after the pandemic.
And there are a lot of changes going inside and outside the country, geopolitically and economically speaking. And also people are thinking twice about where to invest their money, because not all real estate investments are because people want a second home. Many of them are because they want to get revenue out of them.
Right. So, what I think is we are not going to have as much volume. We are going to have more educated buyers. Also, you know, the situation with the dollar—it has plummeted. It’s 460, I think now. Many projects have stopped because many of the payments to construction are in colones.
So that being said, the industry will certainly take a hit because of the dollar. So I believe whoever invests is going to make an educated decision. And it’s a buyer’s market right now. But it’s not an industry like a buyer’s market. Many people will have to readjust their prices if they want to sell.
Richard Bexon
Yeah, I mean, I think people that can readjust their prices will sell. But I think there’s also going to be people that are going to lose some money, just because I think that they built at such an expensive amount that to resell it, etc., is going to be a little bit difficult.
And also we’ve seen an influx of Airbnb. So I think I always say it’s a year of—like we say in English—sorting the wheat from the chaff. You’ll see really who can operate and who can deliver and who can’t now, if that makes sense.
So, yeah. But why is escrow so critical in Costa Rica compared to some other countries?
Why Escrow Matters in Costa Rica
Valeria Aguiluz
Well, Costa Rica has a number of factors that make it very special. First, escrow is not part of our legal system. Escrow is a borrowed figure from common law. But since we have so many foreign investors, especially from North America, it has been adopted.
And right now we have many companies that call themselves escrows, although not all of them are, because escrow is very specific to a set of rules, insurance regulations, and responsibilities. There is confusion. People think being authorized means you can have an escrow, but holding funds is a fiduciary responsibility. But it’s not a fideicomiso or a trust as people know it. It’s more transactional.
So in Costa Rica, we have fideicomiso, or a trust, but we don’t have escrow. But our clients want an escrow to make sure that their money is not in some kind of unknown limbo where they have to trust their lawyer or the agent until the property closes, but rather in a secure place under a contract signed by all three parties—the escrow agent, the buyer, and the seller.
And it has been key to assuring peace of mind and security of your money in cross-border transactions, because many people buy property without even coming to look at it. So this is a warranty for all of the parties—for the lawyer that will get his fees paid, the taxes, the real estate agent’s commission, and of course, the seller.
The Recent Escrow Scandal and Oversight Issues
Richard Bexon
Yeah. Well, look, the recent news is—which I don’t know whether many people know—a lawyer who had escrow stole millions of dollars of clients’ money here in Costa Rica.
You know, it brings up the question here for me: is there a conflict of interest where the lawyer is also involved in the escrow company? Because I’m a believer in separation of duties, meaning the realtor should be one thing, the lawyer should be something else, and then also the escrow should be something completely separate as well.
The only reason I say that is because then people are checking each other. But when the realtor recommends the lawyer, and the lawyer also owns the escrow, there’s too much stuff there that can go wrong, you know, in my mind.
But I mean, do you think there’s a conflict of interest? Could this have been stopped? And I mean, you mentioned SUGEF there as well, which is like the SEC here in Costa Rica, but they’re not really that strong. I mean, they are strong, but they’re not strong, if that makes sense. Like the oversight is not as much as it could be.
Valeria Aguiluz
We certainly are in the same line of thought. Not automatically a conflict, but absolutely as a governance matter. The problem is not merely that the lawyer knows the escrow company. The problem is that when the same economic group or the same person is simultaneously giving legal advice, controlling the escrow funds, deciding when conditions are met, and benefiting from the release of the funds. So it’s like some people call it a one-stop shop, but you really want—like in government—your powers divided. You really want a neutral third party.
I am not a fan of escrows that are owned by law firms. I know this will be a very unpopular opinion amongst my competitors. And for example, TLA’s founding partners are lawyers, but they do not have a law firm in Costa Rica. They don’t even—for example, Frank, who I think many people know, Frank Busch—Frank works in an investment capital fund. So he is not at all involved in the legal side, but he has the knowledge, which I think is very important.
That’s why a lot of escrow companies employ legal professionals, because you have to know the law. But when you put all of your trust in one individual, then with great power comes great responsibility. And then some people are not as trustworthy as you would think. Not even with your own family. I wouldn’t put all my eggs in one basket.
TLA Escrow’s Structure and Safeguards
Richard Bexon
I understand. I understand. But like, for instance, this—you know, again, and this is not a plug here for TLA, but I mean, we’ll turn it here—you guys are based up in Texas, in the U.S.
Valeria Aguiluz
And we are in Mexico too.
Richard Bexon
Yep.
Insurance and Risk Protection
Valeria Aguiluz
Yeah, we are a true escrow. We are licensed and—we, well, not we, the partners—they created a true escrow company that is insured against errors and omissions, fraud, cybercrime, theft. All of these insurances are natural to escrow, because escrow is a common law figure. So for Costa Rican companies to have all of these insurances is very expensive, because banks have not thought about this. There is not a product specifically to solve this problem for escrows.
And also, banks want to hold your money. Banks tell you, “I’ll hold your money for a fee,” which is not the same as the service escrow provides, because escrow is more transactional, faster. Like, you know, a real estate transaction usually takes, what, a month to close? You don’t want to go through bank bureaucracy, and the fees are different. It’s a whole different animal. So yes, I think there is a big conflict, because many of the companies that call themselves escrow don’t have the full infrastructure and assurance that they should offer the clients.
And sometimes they take advantage of trust, because a lawyer is someone you trust. Like, if you hire someone as a lawyer, it’s because you trust them. And this person becomes an advisor. And I have seen it, because my husband is a lawyer, and I worked in law for some years. And you become this trustworthy person. But then when millions of dollars are involved, it’s a big temptation. I mean, you just never know what someone’s personal financial circumstances are.
Questions Buyers Should Ask Before Wiring Funds
Richard Bexon
No, or personal circumstances, whatever happens. So what are the questions a buyer should ask before sending hundreds or millions of dollars to an escrow?
Valeria Aguiluz
Okay, first I would ask around about reputation. Even Googling is a very easy first step. And then I would ask these questions: What are your insurances like? How are you going to protect my money? What are the levels inside your company that have to be met in order for the money to be released from that bank account? Third, I would ask which banks do you work with? Like, it’s very important.
At TLA, we work with Texas Capital Bank and Bank of Montreal (Harris), tier-one banks, and Lafise Bank. But for me, it would be a red flag if someone tells me, like, “I work with this cooperative” or this financiera. Like, they are financial institutions, but not as strong. You need a robust institution.
Richard Bexon
You need a tier one in Costa Rica.
Evaluating Bank Partners and Red Flags
Valeria Aguiluz
Yeah, you want a tier one everywhere. Really. You can go—many people don’t notice—but there’s a company called Moody’s, and you can go and check if a bank is, you know, the score—like A, AAA, A+. And that’s important. People should do their homework, or at least ask: “Okay, Valeria, why should I trust TLA?” And I can tell you: okay, we work with Texas Capital Bank, who has over 30 billion in assets. I can show you the ratings in Moody’s. I can send you the package of our insurance, etc.
I can show you the projects that we work on in Costa Rica. The highest-end projects in Costa Rica trust TLA. All of that speaks to what kind of company we are before your money gets released. Like, many internal levels of security have to be cleared. It is not one person who has all the power, because there are some escrows that are basically one person.
Richard Bexon
Yeah. Yeah. And I mean, I think that’s probably a red flag if it’s one person, if that makes sense. But let’s say they could have staff—like they could have a person who has a proxy, some processors—but you want a structure like a real company to hold your money.
Valeria Aguiluz
Yeah.
Managing Local vs. U.S. Escrow Transfers
Richard Bexon
Look, I mean, I think TLA being based in the U.S., sometimes—you know, again, I’ve used TLA for my own transactions, for client transactions. Also here, local escrow companies that are only escrow companies registered with SUGEF. And it’s always kind of like, okay, the question here is: where does the seller want the funds? Because sometimes the buyer is typically outside, if that makes sense. If the seller’s like, “No, I want the funds outside,” we should go use TLA. If it’s inside, sometimes we’re like, you know, use a local one here. Because again, you’ve got two choices. You’re either going to have to do all of the KYC—know your client documents—at the beginning with the local one, or you do it a little later on with TLA.
Because when you guys send the funds to Costa Rica, you have to send it with all that documentation anyway. But people are going to be looking at that. Their realtor or whoever’s representing them is going to say, “Well, the seller wants the money here in Costa Rica, so probably best to use a Costa Rican escrow.” What is your response to that?
Valeria Aguiluz
My response is you can work with TLA because we are registered under Article 15, and we have bank accounts in Lafise in euros, dollars, and colones. And now you can send us all your domestic transactions, because we have a Costa Rican entity called Thomas Title LatAm. Just because they wouldn’t let us register TLA, because it was too similar to a competitor’s name. But we are fully registered with SUGEF, and we work with Costa Rican banks. So everything that we couldn’t do before, we can do now. So you get that—you get this first-hand.
Handling Transactions Across Borders
Richard Bexon
Yeah, I think it’s—you can have your cake and eat it too, which is basically like you can have everything. But like, a client’s wiring then to Costa Rica, or are they wiring to your U.S. bank account and then you guys send it down?
Valeria Aguiluz
Yeah. No, like, for example, if the money is in Costa Rica, it makes no sense to send it to the United States. So they send it directly to our local bank, which is Lafise, that’s our partner. And then we just do a simple local wire, and it’s very easy.
Weakness of Local Regulation
Richard Bexon
Okay. But my question for you here is: the regulation in Costa Rica is less than it is in the U.S., right? Because again, you have an escrow in Costa Rica, you have an escrow in the U.S., you are very clear. So the governance and legality and obligations and laws around it are a lot less in Costa Rica than they are in the U.S.
Valeria Aguiluz
Yeah. Listen, I don’t want to upset my friends at SUGEF, because it was a pain to get us registered. But this is how it works. SUGEF cares that no money is being laundered in Costa Rica. That’s the reason for their existence. But they do not guarantee anything for the people who are doing transactions. They just want you to gather KYC and proof of funds so they know there’s no money laundering in the country.
But if something goes south with a regulated entity, they have no responsibility. And they even put it in—there’s a disclaimer when you are registered—that first, you cannot publicize it. Like, I cannot put a huge sign saying “TLA is now registered with SUGEF.” It’s not permitted. And second, they have this disclaimer that says being registered with SUGEF is not a warranty that your money is safe.
Richard Bexon
So I mean, what is the recourse someone has of putting money into escrow in Costa Rica? I mean, is it the Colegio de Abogados? Is there some form of recourse there? Because it sounds like there’s not much. Like, again, if my money goes missing or something happens, what do I do?
Valeria Aguiluz
Well, the formal law is important. Like, you can go to the authorities here and to the OIJ, because stealing your money is fraud and it’s a crime. So I mean, that’s basically it. But yeah, there is backup—but there’s no insurance. It would take years. Sadly, it would take years. And if the person cannot pay you, you lost your money.
Protecting Buyer Funds
Richard Bexon
Wow. I mean, I think for anyone listening to this, it’s try and potentially use a U.S. escrow and then send it down. Or at least make sure that there is some form of insurance there, if that makes sense. And then check that insurance.
Valeria Aguiluz
Yes, yes. You want to make sure that if something goes south, your money will be protected. For example, you know the difference between the country that the U.S. is and Costa Rica—a very small country. All of our accounts are FDIC insured. That means every deposit has a federal protection of some amount. I don’t recall the amount—like I think $75,000 or more. I don’t know the exact number.
And in Costa Rica, for example, if you have your money in some public bank like Banco de Costa Rica and the bank goes into bankruptcy—like it happened decades ago with Banco Anglo—another bank of our system will give you your money.
But if it’s a private bank, they will give you some percentage of your money, just like the FDIC system. That’s regarding the banking system. But yes, you want to have insurance. You want to do your homework. You want to really make sure that this company has the means to protect your money.
FDIC and Banking Systems Explained
Richard Bexon
I just quickly looked it up—it’s $250,000, the FDIC insurance, just so that you’re aware.
Valeria Aguiluz
Oh, well, yeah, that’s even the full price of some properties people buy.
Richard Bexon
Exactly, exactly. Do you think, based on this recent scandal, it will change anything in how escrow is handled in Costa Rica?
Reform and Future Outlook
Valeria Aguiluz
Well, I am appalled that this scandal has not hit the news, because it was very bad. Many people were hurt. I feel very sorry for people who lost their money. And I think, for sure, people are now—like, the days that this happened, my phone was ringing off the hook, like, “Is my money safe in TLA? This happened…” And now people are thinking twice before they just choose whatever escrow.
Because even though this did not hit the news, everybody in the industry knows. Many people were affected. And this is good for me, because I can tell people, “This is what I offer, come work with me.” But this is not good for Costa Rica. It’s not good for Costa Rican real estate or investing or how we view it in our brands. So I mean, I think it needs to be addressed.
I never like to kick someone when they’re down, but this is a very serious matter. I think it should have been publicized more. I think even SUGEF would have a responsibility to tell people what the extent of what they do and what they don’t do is. Because a lot of people came to SUGEF looking for help, and they were like, “Yeah, we cannot do anything.” And also, I think there is a responsibility in being transparent.
We issued communications—we sent an email to our clients, and we did some publications on LinkedIn without saying names. But this is where true leadership and good business practices are shown—who is doing a good, responsible job and who is not. Because it’s all fun and games until somebody loses millions of dollars.
Final Question: Investment Decisions in 2026
Richard Bexon
Exactly. Okay, my last question for you—I’ve kept you long enough. If you inherited $500,000 and you had to invest into a business or real estate in Costa Rica, what would you invest it in and why?
Valeria Aguiluz
I thought long and hard about this question, because you’ve asked it before, and now I have a better answer. So let me see—I have it over here. I would not invest it just in one place, that’s for sure. One of my options would be a cash-flow real estate tied to resilient tourism—something I can get a return on investment from. Tourism rose a little bit in 2026, which will help.
Another option would be a mixed strategy. I could probably do something with $300,000–$350,000 in an income-producing real estate with Airbnb or similar platforms. And then $100,000–$150,000 kept liquid and in reserve for contingencies and opportunities. And if I have something left, I would use it for improvements, operating runway, or small business bolt-ons. Because tourism is the engine behind this big industry we have in Costa Rica.
Like, it works like a charm. Right now we are in high season, and after spring break is when we have historically seen the most deals. People come, they fall in love with the country, they say, “Okay, let’s buy some property over there,” and that’s how it works. Tourism is a big factor. So I would invest in something related to tourism where I can get some return on investment, or in some land that I know I can hold for some time and then sell when the market improves.
Richard Bexon
Cool. That’s a good answer, Valeria. Well, I very much appreciate your time for joining us on the podcast and sharing the information. And yeah, we look forward to getting you on the podcast in the future.
Valeria Aguiluz
Thank you so much. You’re always so nice to us. And thank you for trusting TLA. Have a wonderful afternoon.
Richard Bexon
Thanks very much. Guys, great podcast there with Valeria. I hope you enjoyed that and really got an understanding of what you need to know about escrow in Costa Rica. Wow, it’s a beautiful country, guys. It is sometimes a little bit cowboy down here, and the oversight is very limited. And as I always like to say, it’s caveat emptor—buyer beware.
I remember that from my law classes. So, you know, it’s a beautiful country, as I said, but it’s so easy to make mistakes, and there is very little recourse. So do not be penny wise and pound foolish when putting your team together in Costa Rica. I truly believe your project is only as good as your team. Speak to anyone out there and they’ll tell you that—it was only as good as their team. But remember, if you’re looking to do anything here in Costa Rica, guys—anything—and just want a conversation with us, we talk to people about everything.
I’ve actually got a tour with a client next week. He wants to become a coffee distributor in the U.S. So, we’re going to visit some coffee farms that I know here, and he actually wants to buy directly from the farms and taste the coffee, etc. So, I kind of feel like a bit of a sommelier here, being out in the coffee farms like you would in vineyards. But it’s definitely my dream one day—to have a coffee plantation with my house in the middle of it and drink my own coffee. Don Ricardo’s coffee.
So anyway, but remember, if you’re looking to do anything here, guys, info@investingcostarica.com.
