Closing costs in Puerto Rico: what you actually pay

The rough number

Budget somewhere around 3% to 6% of the purchase price for closing costs. On a $150,000 home that is roughly $4,500 to $9,000 on top of your down payment.

The spread is wide because it depends heavily on whether you are financing, what the notary charges, and how much title work the property needs.

What makes up the bill

• Notary fees — the attorney who drafts and authorizes the deed. This is the largest single item in many closings.
• Registry (Registro de la Propiedad) recording fees, based on the property value.
• Internal revenue stamps and vouchers required on the deed.
• Title study and, if you buy it, title insurance.
• Appraisal, required by any lender.
• Lender origination fees and points, if financing.
• Prepaid property insurance — often a full year up front.
• Prorated CRIM property taxes.

What is negotiable and what is not

Government stamps, registry fees and CRIM prorations are fixed. Do not waste effort there.

Notary fees, lender fees and who pays what between buyer and seller are all negotiable, and on a bank-owned property the bank will sometimes contribute toward closing costs to move the deal.

Ask for a written estimate of closing costs early — before you are emotionally committed. A notary who will not put it in writing is a warning sign.

The cost people forget

Property insurance in Puerto Rico is materially more expensive than in most mainland states because of hurricane exposure, and lenders require it in place at closing. Get a real quote for the specific address early — not a rule-of-thumb estimate — because in some coastal zones it changes whether the monthly payment works at all.