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Bank Owned / REOOcean View'HomesCondosCommercial
REO - ReposeidasPropiedades Frente al MarCasasCondominiosBuscador Principal

Real Estate Closing Process - Closing Costs.


Registration Requirements: 

No

Procedure

Time to complete:

Cost to complete:

1

Obtain a property title report at the Property Registry

3-5 days

$100

2

Obtain a property tax certificate from the Municipal Revenues Collection Center (CRIM)

2 days

$50

3

Obtain Title Commitment for Title Insurance

2 days

none

4

The notary public prepares and authorizes and the parties execute the Purchase and Sale Deed

4 days

$300 (Corporate Resolution) + 1% of property value up to $500,000 + 0.5% of the excess over $500,000 (notary fees)

5

Purchase Internal Revenue Stamps and Registry of Property filling vouchers

2 days

IRS (original): $55 + 0.1% of property value IRS (certified copy): $27.50 + 0.05% of property value Vouchers:$ 10.5 + (0.4% of property value - 50)

6

File the deed at the Registry of Property

1 day

$100

7

File the Notice of Sale with the Treasury Department

1 day

$20

8

File the Notice of Change of Owner with the CRIM

1 day

$20



Procedure
1*. Obtain a property title report at the Property Registry

Time to complete: 3-5 days

Cost to complete: 100

Comment: A Notary is an attorney authorized and licensed by the government of the Commonwealth of Puerto Rico to certify and attest as to, among other things, the legality of public deeds executed in his presence, the identity of the parties executing the public deed and the date and municipality in which the public deed was executed. Public deeds for the sale of immovable property must be prepared by a Notary and executed by the parties before such Notary. The Notary requires a title search which will show the status of the property at the Registry of the Property: owner, mortgages and encumbrances, etc.




Procedure 2*. Obtain a property tax certificate from the Municipal Revenues Collection Center (CRIM)

Time to complete: 2 days

Cost to complete: 50

Comment: Obtain a property tax certificate from the Municipal Revenues Collection Center (CRIM).
This certificate makes sure the property does not owe any property taxes and is required by any bank lending money for the transaction.



Procedure 3. Obtain Title Commitment for Title Insurance

Time to complete: 2 days

Cost to complete: none

Comment: The buyer obtains Title Commitment in order to obtain Title Insurance.


         

Procedure 4. The notary public prepares and authorizes and the parties execute the Purchase and Sale Deed.

Time to complete: 4 days

Cost to complete: $300 (Corporate Resolution) + 1% of property value up to $500,000 + 0.5% of the excess over $500,000 (notary fees)

Comment: The Notary prepares the deed of purchase and sale to be executed in his presence by the parties. He attests as to the legality of the transaction, the identity and personal circumstances of the parties (marital status, legal age, profession and place of residence) or, in the case of juridical entities, the personal circumstances of the authorized representatives, when and where was the deed of purchase and sale executed by the parties and that it was executed in his presence. It is mandatory that the deed be prepared by a notary.
The maximum notary fees allowed are 1% of property value for values up to $ 500,000 plus 0.5% of the excess over $500,000. But the fees are usually negotiated among parties below this maximum.
Depending on the agreement reached with the Notary, he will also prepare a Corporate Resolution authorizing the representatives of the corporation to appear in the deed ($300).



Procedure
 5.
Purchase Internal Revenue Stamps and Registry of Property filling vouchers

Time to complete: 2 days

Cost to complete: IRS (original): $55 + 0.1% of property value IRS (certified copy): $27.50 + 0.05% of property value Vouchers:$ 10.5 + (0.4% of property value - 50)

Comment: Purchase of Internal Revenue Stamps to be canceled on Original of Deed of Purchase and Sale and First Certified Copy of Deed to be filed in the Registry of Property. The original is kept by the notary and the certified copy is presented at the Registry.
Filling vouchers of the Registry of Property must be bought before applyng for registration.
Both the stamps and the vouchers are bought by the lawyers/notaries electronically.

For transactions of $25,000 to $50,000 an additional internal revenue stamp of $5.00 must be cancelled on the original of the deed and $2.50 on the certified copy. This amount increases by $5.00 on the original and $2.50 on the certified copy for each subsequent full or fractional $50,000 increase on the transaction.



Procedure 6. File the deed at the Registry of Property

Time to complete: 1 day

Cost to complete: 100

Comment: The buyer files the Sale and Purchase Deed at the Registry of Property.



Procedure 7. File the Notice of Sale with the Treasury Department

Time to complete: 1 day

Cost to complete: 20

Comment: The buyer must file the Notice of Sale with the Treasury Department.



Procedure 8. File the Notice of Change of Owner with the CRIM

Time to complete: 1 day

Cost to complete: 20

Comment: The buyer files the Notice of Change of Ownership at Municipal Revenues Collection Center