Notary condemned for failing to verify vehicle ownership in property deal
Translated from Spanish, summarized and contextualized by DistantNews.
At a glance
- A notary in Costa Rica has been ordered to pay damages for transferring a property without verifying if the buyer was the rightful owner of the vehicles offered as partial payment.
- The ruling clarifies that a notary's duty extends beyond drafting deeds to actively advising and warning all parties about risks impartially.
- This decision establishes that notaries can be held civilly liable for failing to fulfill this active advisory obligation during property sales.
A Costa Rican notary has been ordered to pay damages for negligence in a property transaction, establishing a significant precedent for the responsibilities of legal professionals in real estate dealings. The notary failed to adequately verify the ownership of three vehicles offered by a buyer as partial payment for a property, leading to the court's decision.
The ruling by the First Chamber of the Supreme Court of Justice clarifies that the role of a notary public is not confined to merely drafting legal documents. Instead, it mandates an active advisory function, requiring notaries to impartially guide and caution all parties involved in a transaction about potential risks. This proactive duty is crucial for ensuring transparency and preventing fraudulent activities.
The court concluded that the notary breached this obligation by not conducting thorough due diligence regarding the vehicles presented as payment. This failure to verify ownership meant the notary did not fully protect the seller from potential complications arising from an incomplete or invalid payment. Consequently, the notary has been deemed civilly liable for the damages incurred by the seller due to this oversight.
This judgment underscores the heightened responsibility placed upon notaries in Costa Rica. It emphasizes that their professional conduct must encompass a comprehensive assessment of all aspects of a transaction, including the legitimacy of assets exchanged. The decision serves as a clear warning that failing to meet these active advisory and verification standards can result in significant legal and financial repercussions.
Originally published by La Naciรณn in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.