Buying in San Juan is exciting, but the last thing you want is a surprise at the closing table. If you are coming from the mainland or buying your first home on the island, the way Puerto Rico handles closings can feel a bit different. This quick guide explains the common closing costs you will see in San Juan, who usually pays them, when they are due, and how they can change by property type. You will also get a simple checklist to plan your funds with confidence. Let’s dive in.
How closings work in Puerto Rico
In Puerto Rico, a notary public (notario público) leads the closing process. The notary prepares and executes the public deed, confirms documents, and often coordinates tax stamps and filing. For background on notarial practice, see the guidance from the Colegio de Notarios de Puerto Rico.
Once you sign the deed before the notary, the transfer still needs to be recorded at the Land Registry. Recording at the Registro de la Propiedad is what completes the legal transfer of title and confirms priority of your ownership. For rules and filing requirements, review the Registro de la Propiedad de Puerto Rico resources.
Timing usually follows this cadence:
- Earnest money or deposit at contract signing, held in escrow or a trust account.
- Closing day funds you bring to the notary, including your down payment and most closing costs, via certified funds or wire.
- After closing, the notary and title agent submit the deed and any mortgage for registration. Recording can take days to weeks depending on workflow.
If you cannot attend in person, ask the notary whether a power of attorney is acceptable and what extra steps are required for signatures executed off-island.
Common buyer closing costs
Below are the items buyers in San Juan most often see. Exact amounts vary by property price, lender, notary practice, and negotiation. Get written quotes early.
Title search and title insurance
A title search confirms the seller’s ownership and checks for liens in the registry. Title insurance protects you and your lender against certain covered title defects found after closing. Lenders usually require a lender’s policy, and many buyers also purchase an owner’s policy. Ask for written quotes and confirm the insurer is licensed for Puerto Rico transactions.
Notary fees and deed preparation
The notary charges fees for preparing and executing the public deed, validating documents, and coordinating filings. Buyers typically pay fees tied to documents they sign. Complex closings or remote signings can add administrative costs. Request a written estimate at the start so you know what to expect.
Stamps, vouchers, and documentary taxes
Puerto Rico applies documentary stamp taxes and related Treasury vouchers to deeds and mortgages. Figures depend on the deed’s value and whether a mortgage is recorded. These are often collected at closing. For official tax and stamp information, consult the Departamento de Hacienda de Puerto Rico and ask your notary for an itemized breakdown.
Registry recording fees
Recording the deed and any mortgage at the Registro de la Propiedad carries filing fees. Buyers typically pay for recording their deed and mortgage. Registration is essential to complete your title, and delays or missing fees can slow a lender’s final disbursement. Learn more about registry requirements through the Registro de la Propiedad.
Lender charges and mortgage costs
If you are financing, expect loan-related costs such as origination, application, underwriting, appraisal, and credit report fees. Lenders must provide a Loan Estimate and a Closing Disclosure that detail these costs. For plain-language explanations, review the CFPB’s guide to the Loan Estimate and the CFPB’s overview of the Closing Disclosure.
Appraisal, inspections, and surveys
Buyers usually pay for appraisals and any inspections they choose, such as a general home inspection or termite check. Surveys are less common but may be helpful for single-family properties or boundary questions. For condos, request the declaration, bylaws, and financials, and budget for any condo status or estoppel letter.
Property taxes, prorations, and municipal fees
Property taxes are prorated as of the closing date. You pay taxes that accrue after closing. Ask your agent and notary to verify whether there are pending assessments, municipal liens, or unpaid bills that must be cleared before or at closing.
Insurance: hazard and flood
Lenders require homeowners insurance and, if applicable, flood insurance. Parts of San Juan have coastal flood exposure, which can increase premiums and documentation needs. Verify your flood zone status and get insurance quotes early so your lender can approve coverage.
HOA and condo transfer items
Condominiums often charge transfer fees, estoppel or status letter fees, and sometimes capital contributions or reserves at move-in. Who pays is negotiable, but be prepared for immediate dues and any association-required deposits.
Other potential charges
You may also see attorney fees if you hire counsel in addition to the notary, courier or wiring fees, bank check fees, power-of-attorney preparation or authentication costs, or charges to clear liens uncovered during the title search.
Who pays what in San Juan
Buyer-typical items include lender fees, inspections, homeowners and flood insurance, title insurance, the notary’s fees for buyer documents, registry recording fees, and many condo-related letters or reserves. Sellers commonly pay brokerage commissions and the payoff of their existing mortgage. Many line items are negotiable. Your purchase contract should clearly state who pays each cost, and local market custom can influence those negotiations.
Costs by property type
Condominiums
Condos often include association transfer or estoppel fees, potential capital contributions, and immediate monthly dues. Title insurance may require endorsements for condominium-specific issues. Ask for condo documents and financials early and build these items into your budget.
Single-family homes
You might consider a survey to confirm boundaries and easements. Appraisals and inspections follow typical practice, but pay special attention to utility connections and any easements that affect access or use.
New construction
Builders sometimes use their preferred notary and have specific closing procedures. There may be municipal certificate fees, warranties to review, and title items like utility easements that need confirmation. Get the builder’s fee schedule upfront.
Foreclosures and REO
Expect fewer seller concessions and a higher chance of title exceptions or liens that must be cleared. Some title insurers offer limited coverage for foreclosure properties. Budget time and funds for extra due diligence.
When you pay and how to prepare funds
Plan on paying your deposit when you sign the purchase agreement. On closing day, you will bring your remaining down payment and closing costs to the notary, usually by certified funds or wire. Ask the notary which payment methods are accepted and the timeline for sending wires. If you are closing from off-island, confirm whether a power of attorney is allowed and what notarization or consular steps are needed where you will sign. Always verify wiring instructions by phone with a trusted contact to reduce the risk of fraud.
San Juan buyer checklist
Use this quick list to stay organized:
- Request a written Loan Estimate from your lender and a Closing Disclosure preview before closing.
- Ask the notary or title company for a line-item estimate of notary fees, stamps, vouchers, and registry costs.
- For condos, request an estoppel or status letter, transfer fee schedule, and the full set of condo documents and financials.
- Verify your flood zone and get homeowners and flood insurance quotes early.
- Confirm acceptable payment methods for closing funds, wire cutoffs, and lead times.
- Check that your title insurer is licensed for Puerto Rico and ask about any condo or boundary endorsements you may need.
- If you will be remote, confirm the power-of-attorney format, execution steps, and any extra administrative fees.
- Protect your funds by confirming wiring instructions verbally with known contacts.
Avoid surprises: get it in writing
Closing costs vary, so the best way to plan is to gather quotes early. Ask for the lender’s Loan Estimate, a notary fee and stamp breakdown, and any condo association charges in writing. Build these into your budget, and make sure your contract clearly states who pays which fees. Right before closing, review your Closing Disclosure carefully so you understand your final numbers and payment instructions.
Work with a local guide
You deserve a smooth, well-planned closing with no last-minute surprises. If you are buying in San Juan or exploring Puerto Rico’s coastal communities, connect with a trusted, process-focused advisor. For guidance on local custom, timelines, and the steps that protect your purchase, reach out to Vin Forbes to get started.
FAQs
How should a San Juan buyer budget closing costs?
- Plan for loan charges, title and notary fees, stamps and recording, inspections, insurance, prorated taxes, and any HOA or condo fees, then request written estimates from your lender, notary, and association.
Who usually pays title insurance in Puerto Rico?
- Lenders typically require a lender’s policy that the borrower pays for, while buyers often purchase an owner’s policy as well, though the parties can negotiate who pays.
When do you pay the notary in a Puerto Rico closing?
- You normally pay the notary at closing when the deed is executed, although some preparatory or administrative charges may be requested earlier.
Are there extra taxes for mainland buyers in Puerto Rico?
- Tax and withholding rules can differ from the mainland, so mainland buyers should consult a Puerto Rico tax professional or the Departamento de Hacienda for specifics; seller-focused withholdings do not usually change buyer costs.
Do San Juan condos have special closing fees?
- Many condos charge transfer or capital contribution fees and require an estoppel or status letter, so request the association’s fee schedule and documents early to avoid surprises.
