Possession, exploitation, transaction and legal conditions in the Costa Rica-Panama border strip

Abstract

This article describes the situation faced by people who occupy properties along the Southern Border Strip of Costa Rica. The legal framework provides that the INDER administers and grants concessions in order to fulfill the legal purposes for which it was created. With regard to land possession, the concession contract constitutes a real administrative right in favor of the concessionaire for a period of 25 years, and up to 50 years for the use of communal services. The permitted exploitation is linked to residential and agricultural use, through activities such as livestock farming, coffee cultivation, oil palm production, and self-consumption. Likewise, activities such as hotels, supermarkets, small eateries, and restaurants are allowed, encouraged by the trade generated by existing commercial establishments. For transactions involving these properties, commercial values similar to those of deeded properties are established; however, historically, cases of fraud have occurred. The perception of legal uncertainty generates conflicts in which acts of invasion occur and are encouraged. Additionally, for financial institutions, these lands do not provide sufficient collateral to be considered as a guarantee. All these conditions have led to initiatives aimed at granting land titles; however, these have not been implemented, and consequently, the legal status of the border strips remains unchanged.