The Practice of Real Estate in Costa Rica
How bad contract clauses trap good sellers — and why we don’t play that game
Let’s talk about one of the quietest and dirtiest tricks in Costa Rica real estate: the can’t-cancel clause.
You’ve seen it. Maybe you’ve lived it.
A U.S. owner lists a property here. Six months go by. Few showings, fewer results. The owner’s patience wears thin, the relationship fades, and naturally they want a change — a new agent, new energy, new direction.
But when they ask to cancel, they’re told they can’t.
Or worse: they can, but if the property sells to anyone the first agent ever showed the house to — even 180 days later — that agent still gets paid.
It’s the fine print no one warned them about.
The difference between ethics and entrapment
In the U.S., this would never fly.
Under the National Association of REALTORS® Code of Ethics, particularly Article 16, one of the most basic rules of professional conduct is this:
A REALTOR® shall not engage in practices inconsistent with another REALTOR®’s exclusive relationship with a client.
That standard cuts both ways. It doesn’t just stop another agent from interfering with a current listing — it also means that a current listing contract cannot be written in a way that interferes with the client’s right to freely choose a new agent once it expires.
In the U.S., that’s the line. Listing agreements are built on clear boundaries — a start date, an end date, and no lingering “gotcha” clauses that reach beyond their term. When an owner ends a listing, they’re free to move on. Period. (technically a listing agreement can have a hold over period in the US under NAR but only if the client DOES NOT execute a new listing agreement with another agent)
Because in the U.S., the relationship is the contract. If the seller doesn’t believe in your work, you don’t hold them hostage. You earn it back, or you let them go.
That’s not just ethics. It’s respect.
The Costa Rica loophole
Here, though, it’s different. There’s no national licensing board. No MLS rules. No mandatory Code of Ethics tied to real enforcement.
So some firms — even those claiming affiliation with NAR-related groups — quietly slip in long “tail clauses” that say if a buyer came from any showing while they held the listing, they’re owed commission for six months, nine months, even a year after cancellation.
That means a U.S. owner can sign a new listing agreement, spend fresh marketing dollars, and still owe money to the last agent if the buyer once walked through with them.
Imagine firing a painter for doing a bad job and still owing them if your new painter uses the same brush.
That’s what these clauses do.
Why we refuse to play that game
At the Jabbour Luxury Group, we follow a simple rule: if we’re not earning your trust daily, you should be free to move on.
Our listing agreements have clear start and end dates, and they don’t contain hidden traps. If you cancel, you cancel. No fine print. No tail. No threat letters from your former agent when you finally find a buyer.
We built our reputation by producing results, not by writing clever clauses.
Because our business isn’t about binding you — it’s about serving you.
The real American way
The U.S. real estate system gets a lot right.
It defines ethical lines clearly.
It enforces transparency.
And most importantly, it protects a seller’s right to choose who represents them.
That’s the model we bring into every transaction in Costa Rica.
We believe you should have confidence in your agent not because you’re stuck, but because you trust them.
That’s the way we do business. The right way. The NAR way. The American way.
Next up in this series: What “Exclusive” Really Means — and Does it Stop Protecting You?.