Closing costs, explained line by line

1. Stamps on the deed

A notarial deed is not complete until stamps are attached to the original and to each certified copy. The buyer receives a certified copy; the original stays in the notary's protocol.

• Internal revenue stamps. For amounts over $5,000: $2 for the first $1,000 plus $1 for each additional $1,000 or fraction on the original, and $1 plus $0.50 per additional $1,000 on each copy.
• Legal assistance stamps. Required on deeds of $25,000 or more: $5 on the original and $2.50 on each copy up to $50,000, plus the same for each additional $50,000 or fraction. They fund legal aid.
• Notarial stamp. A small stamp the notary affixes and normally absorbs.

2. The Property Registry

Recording the deed in the Property Registry protects your title against third parties. It is customary and strongly recommended.

• Recording fee: $2 per $1,000 on the first $25,000 of value and $4 per $1,000 above that.
• Presentation voucher ($15) and Political Code stamp ($0.50).
• Electronic filing: deeds are presented through the Registry's electronic system; notaries commonly pass through a small filing charge.
• Registry certification: a certified search confirming the property's recorded status before closing.

3. The notary

In Puerto Rico the notary is a lawyer who drafts and executes the deed and answers for its legality. The fee on a deed of sale is $150 up to $10,000; between $10,000 and $5,000,000, 0.5% to 1% of the price, negotiable; above $5,000,000, negotiable with a $25,000 minimum.

4. Filings after the sale

• Form SC 2821-A, the informative return to the Treasury Department on transfers of real estate.
• Change of owner at CRIM, so future property tax bills come to you.
• Change of owner at the Treasury Department.

Notaries typically charge a flat amount to prepare and file each one. Amounts vary by office.

5. Title

A title study reviews the Registry record for liens, mortgages, and restrictions. Title insurance is optional for cash buyers and usually required by lenders.

6. Community and tax items

In gated communities, closings often collect HOA dues in advance, a reserve or capital contribution, and club initiation or dues. These are set by each community and can exceed the government costs. Property tax is settled by CRIM proration between buyer and seller.

7. Who pays

The purchase contract decides which side pays each line. Ask before you sign the option, and get an estimate from the closing notary early.

Questions

How much are closing costs in Puerto Rico?

Stamps, Property Registry fees, the notary fee, and typical filings come to roughly 1% of the price on a $4,000,000 cash purchase at a 0.5% notary fee. Community fees, CRIM proration, financing, and inspections are additional.

What are legal assistance stamps in Puerto Rico?

Stamps required on deeds of $25,000 or more, at $5 on the original and $2.50 on each certified copy for each $50,000 or fraction, that fund legal aid services.

Do I need to record my deed in the Property Registry?

Recording is customary and strongly recommended because it protects your title against third parties. Act 60 investors should note that DDEC looks for a primary residence that is registered or pending registration.