Steps to Property Purchase in Puerto Rico
Puerto Rico's Real Estate market is not greatly different from what you'd expect in the mainland USA. Procedures are similar because as a Commonwealth of the United States, U.S. citizens enjoy the same protections and rights as they would at home.
However, as most business is conducted in Spanish, many would-be homeowners are thwarted before they learn everything Puerto Rico has to offer. Livtopia specializes in assuring transparency and security no matter what language you're comfortable with. Our reps are on-hand to clarify questions on the brief over-view of the buying process outlined below.
An initial deposit in the neighborhood of 5% is usually needed though this can vary depending on the agreement reached between buyer and seller. The downpayment may be less if the remaining funds are to be paid through a mortgage.
Once you've selected a home for purchase and made the downpayment:
•A public deed for the purchase of the property must be signed. The deed must be prepared by the notary and executed by the parties before the notary. The notary is an attorney authorized and licensed by the government of the Commonwealth of Puerto Rico to certify and attest the legality of the public deeds executed in his or her presence, the identity of both the seller and the buyer, and the municipality in which the public deed was executed.
•Obtain the Property Title Report at the Property Registry (Registro de la Propiedad). The report will show the status of the property at the time of the last registry. It provides details such as the owner, mortgages etc. and will indicate if the property is free from all encumbrances.
•Obtain Property Tax Certificate from the Municipal Revenue Collection Center (CRIM). This certificate ensures that there are no outstanding property taxes.
•A Title Commitment for Title Insurance is required in order to obtain title insurance. Title insurance policies are designed to cover the borrower if there is any kind of fraud in the sale of the property.
•The Preparation and Execution of the Purchase and Sale Deed is the most important step. The notary prepares and executres the deed of purchase and sale in the presence of both parties. The notary certifies the legality of the transaction, the identity of the 2 parties (i.e. name, age, place of residence, profession, marital status). In case of authorized representatives, the notary can also certify the personal details of the representative, or prepare a ‘corporate resolution’ authorizing the representatives of the corporation to appear on the deed.
•Purchasing internal revenue stamps and registry of property filling vouchers: The internal revenue stamps are required to be canceled on the original deed (título de propiedad in Spanish) of purchase and sale as well as for the first certified copy of the deed. The notary keeps the original deed whereas the first certified copy of the deed is filed in the Registry of Property. Filling vouchers of the Registry of Property are to be purchased before applying for registration.
•File the sale and purchase deed at the Registry of Property.
•File the notice of sale with the Treasury Department.
•File the notice of change of ownership with CRIM.
As mentioned above, we're happy to address any questions or special circumstances, no matter what part of Puerto Rico you're thinking of calling home.