Tips on Buying a Home Cash Down

mrtibbs Active member

65POSTS

8 years ago

Hello all,

We are looking to buy a turn key modest home in Isabela or Aguadilla. There is a lot of useful information on this Forum. However, I know that the rules are different in terms of house hunting in Puerto Rico as opposed to the states. Our plan is to use Frank Lopez from F. L. Realty because of the good experiences we've read with him on here.

So we will be making a cash purchase and I wanted to know if there was anything we need to be aware of. I know (from reading so many posts on here) that we need to make sure that the deed is clean. This will be our first purchase which makes it a whole new adventure for us. Any advice that may be offered in terms of what we need to keep in mind with making cash purchases, would be greatly appreciated. It'd be great going into this with as much information as possible to make it a smoother process. Many thanks.

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LarryJohnsonPR Active member

63POSTS

8 years ago

If you intend to work with Mr. Lopez ( or any agent for that matter... but specifically with him) that you retain your own separate attorney to thoroughly review any contract you enter with him. He is also an attorney so he may offer the service to you as well but I highly encourage you to have your own legal representation for the transaction. Have the same attorney also order the title search and make sure that the terms of recouping your initial deposit are crystal clear in the event something comes up that no longer makes the property a desirable one for you.

ReyP ViP

5509POSTS

8 years ago

Get your own lawyer, do not use seller lawyer. Have him check the deed of the land and ensure that taxes are up to date. May also want to check that the property lines are correct, no need to have issues with a neighbor.

Make an offer with no money, if accepted then put the down as part of the purchase agreement, it must go into a special account not the account of the seller agent. If the house closing does not occur within the purchase agreement timeframe (usually 90 days) then ask for your down back and move on.

ReyP ViP

5509POSTS

8 years ago

The best way to do this is to rent a house for 6 months and move to the island, then look for your dream property.

mrtibbs Active member

65POSTS

8 years ago

LarryJohnsonPR wrote:
If you intend to work with Mr. Lopez ( or any agent for that matter... but specifically with him) that you retain your own separate attorney to thoroughly review any contract you enter with him. He is also an attorney so he may offer the service to you as well but I highly encourage you to have your own legal representation for the transaction. Have the same attorney also order the title search and make sure that the terms of recouping your initial deposit are crystal clear in the event something comes up that no longer makes the property a desirable one for you.

This is extremely useful information. I agree that it would be in our best interest to have a seperate lawyer from agent seeing in the end he is most likely going to have the seller's best interest at heart. Now we have to start the search for a good lawyer in that area to assist us. Thank you so much for this advice.

mrtibbs Active member

65POSTS

8 years ago

ReyP wrote:
The best way to do this is to rent a house for 6 months and move to the island, then look for your dream property.

We will be dividing our time up living stateside and in Puerto Rico so renting isn't an option. For us it'll work best to buy a home to already have there in order to avoid "rushing" into when it's time to move there permanently. Fortunately, I am in the position to take make the trips required for house hunting.

WarnerW Serial expat

314POSTS

8 years ago

Hmm. Vacant houses are tempting targets. This isn't such an issue if you are buying a condo, but if your plan is for a detached house with some property, security while the home is unoccupied is a real concern. Is there someone you trust who can watch the house?

mrtibbs Active member

65POSTS

8 years ago

WarnerW wrote:
Hmm. Vacant houses are tempting targets. This isn't such an issue if you are buying a condo, but if your plan is for a detached house with some property, security while the home is unoccupied is a real concern. Is there someone you trust who can watch the house?

Yes, we are very well aware and have friends who would be checking on property while we are away.

mrtibbs Active member

65POSTS

8 years ago

Does anybody know of a good lawyer on the west side of the island (Rincon, Aguada, Aguadilla & Isabela) area to recommend? Thank you again for taking the time to respond.

Elcalipocho Active member

61POSTS

8 years ago

#10

As people have mentioned get your own lawyer to review title independently and the deed seller’s lawyer will prepare and hire a contractor or professional to inspect the home.

Puerto Rico weather can be tough on homes over the long run and stuff can be hidden to the layman.

I recommend concrete house with concrete roof on higher stable ground away from tidal waves or flooded rivers.

The inspection should review the building structure/walls/foundation, roof, electric, and plumbing etc.

If you find some expensive defects, it could be a case for you to offer less since its a cash deal.

Someone recently gave me the name of a lawyer (787) 818-5174‬ Agustin Soto.
But personally have not used him, but trust the guy that recommended him.
Good luck, take your time, make sure you do your due diligence.

mrtibbs Active member

65POSTS

8 years ago

#11

Thank you so much for going into detail with specifics. We definitely intend on buying a concrete home that’s for certain. I actually have been making notes from all the information I could use that you all have helpfully shared. I appreciate this forum so much. My wife is Puerto Rican with family on the island but they built their own homes. Unfortunately for us, they aren’t in the loop in regards to the home buyers experience and legalities. A big thank you for the legal recommendation, as well.

annabfalter Contributor

124POSTS

8 years ago

#12

You must get your own lawyer. Our lawyer saved our tails on a property that, according to the sellers, had a clear title. They also had a lawyer waiting in the wings and were pushing hard do the deal quickly. Our lawyer did a title search and found all kinds of issues. Long story short, we are still looking and when we find our place, we will use her and no one else.