The 50% deposit and the requirements
How much to bring, in exactly what form, which documents, and what happens if you fail to pay.
Now the concrete part: what you must bring so they let you bid. There is no room for improvisation here, because if the deposit is not in exactly the form the law requires, you simply do not take part.
To take part, the bidder must deposit fifty percent (50%) of the base, in cash, by bank deposit slip payable to the court, by certified cheque from a Costa Rican bank, or by any duly authorised technological mechanism guaranteeing effective payment, and must designate a means for receiving notifications.
The four requirements, unpacked
1. 50% of the base
Of the base for that round, not of what you intend to bid. If the base is ₡50 million, the deposit is ₡25 million, no matter how much higher you go.
| Round | Base | Deposit |
|---|---|---|
| First | ₡50,000,000 | ₡25,000,000 |
| Second | ₡37,500,000 | ₡18,750,000 |
| Third | ₡12,500,000 | 100% of your bid |
2. In one of the accepted forms
- Cash.
- Bank deposit slip (entero bancario) payable to the court: the most common: arranged at the bank in the court's name.
- Certified cheque from a Costa Rican bank. Certified, not an ordinary cheque, and from a national bank.
- A duly authorised technological mechanism that guarantees effective payment.
3. Designate a means for notifications
An email address or whatever means the court accepts. It is mandatory and it is how later rulings will reach you. Do not leave it to chance: if you miss something in time, the problem is yours.
4. Identify yourself
Individuals, with an identity document. If you bid on behalf of a company, bring a current corporate standing certificate (personería jurídica) proving you may represent it.
The creditor does not deposit (but has a ceiling)
A creditor holding a preferential right of payment is not required to make a deposit in order to take part, provided the bid is credited against their claim, which for this purpose is set at principal plus fifty percent (50%). If they bid an amount exceeding their claim, they must deposit in order to take part.
What happens if you win and do not pay
If you do not pay the full amount on the spot, you have until the third day to deposit it. If you fail, the auction is declared insubsistente (void) and the blow is serious:
If the highest bidder does not pay the price within the stated period, the auction shall be void. Thirty percent (30%) of the deposit shall be handed to the enforcing creditors as fixed compensation for damages, and the remainder credited against the claim of the preferential enforcing creditor. Once the auction is declared void, it shall be held again and the deposit to take part shall be the full base.
What failing to pay on time costs
- Deposit handed over (50% of a ₡50M base)
- ₡25,000,000
- To the creditors as fixed damages (30%)
- ₡7,500,000
- Remainder credited against the preferential claim
- ₡17,500,000
- What you get back
- ₡0
You lose the entire deposit and the asset goes back to auction. Hence the golden rule: never bid a colón you cannot have liquid by the third day.
And there is a side effect almost nobody sees coming: once the auction is declared void, the fresh round runs with a participation deposit of 100% of the base, not 50%. Whoever collapsed the auction has raised the price of entry for everyone, themselves included.
Checklist for auction day
- Valid identity document.
- Corporate standing certificate, if bidding for a company.
- The 50% deposit in the form you confirmed with the court.
- A copy of the notice with the case file number.
- The email or means of notification you will designate, already decided.
- Your maximum bid written on a piece of paper. Seriously: written.
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