60% of the human body is water, yet water is only 0.1% of the Earths’ volume, while potable water makes up only 0.025% percent of the Earth. Its shortage is the cause of humanitarian crisis and a large source of conflicts between those who need it. Costa Rica is blessed with large amounts of water. The majority of rural properties have access to a stream, a spring, or have public water or the possibility of a well. Since the 1940´s Costa Rican laws have protected water. With the development of our country, new laws have created more protection policies, conditions and norms that have consequently created limitations on the free disposal, use and development of private property.
Both water sources and their vessels generate protection zones, that is where development is restricted. Each protection zone has specific legislation and legal treatment, so each property must be analyzed specifically, prioritizing the protection of the environment in correlation with the objective of the investment. Very commonly buyers come to the office with the intention of buying a property holding a construction which was built in violation of said setbacks. A creative, analytical, and constructive position will almost always find the way and possibility to solve said condition within a deal, yet sometimes the deal is compromised.
A recent amendment to the law, allows the development of touristic spaces and access roads within these protection areas. ”Forestry Law…Article 33 bis- Civil infrastructure in urban and rural protection areas. It is authorized to install and perform; Maintain, repair, and replace civil works and public institutions, in the channel and vessels of water bodies in urban and rural areas, as well as in their protection areas such as dams, walls, culverts, bridges, aqueducts, intakes, diversions and calibration of water assigned in concession, drains with meshes for solid waste collection, infrastructure for the discharge of rainwater…”. This new law allows some building within such protection areas. Likewise, works of low environmental impact may be authorized such as observation platforms, bridges, suspension bridges, zip lines, signaling elements and other elements that allow access, observation, and safe enjoyment of natural areas with the least possible impact, when they have as their purpose the development of tourist activities, among others.
The government and municipalities have been requiring “water legality” as a condition for granting building permits. The fact that from an initial appearance a property may not have “legal water”, does not necessarily mean that it should not be purchased. The possibility of granting a property legal water, can usually be achieved through multiple creative and simple ways. Water has now become a main key element in real estate negotiations.
From a legal point of view, all due diligence must identify without exception, and in order of priority, the existence or non-existence of a water source, its potability, continuity and quantity, the possibility of developing an alternative water source, the means and easements required to get the water to the property, forms of storage, the legality of such water or the possibility of generating or complying with said legality, and the possible limitations that the use of third parties of sources located within the property may generate on the property.
Every real estate investment entails a purpose. It is essential to ensure by effective and reliable means if the conditions of said property allow for such purpose. The best results in due diligence always come from the combination between theory and the physical study of the site, especially by using local professionals. If a development is planned from a sustainable and conscious perspective, water will always be a positive and desirable condition within the development.
Written by Lic. David Zúñiga
