My family and I are moving to the beautiful east coast of PR in April. We are relocating from St. Petersburg, FL. We are looking at a possible property purchase with owner financing. In addition to the purchase price what fees should we expect to pay?
We know of:
.55 - 1% for IRS Stamp,
.1-.5 % for Registration and Filing,
.5-1% for Attorney Fees.
Additional questions:
*Are the mortgage and the deed considered the same document?
*Are fees different depending on bank financed vs. owner financed?
*When it is owner-financed, is it still considered a mortgage?
*When you initiate a mortgage and then pay off a mortgage do you have to pay the above fees for both transactions? Also, if you re-finance, same fees again?
*When you purchase, are there one set of fees for the purchase and another set for the mortgage?
Are there any other fees of which we need to be aware?
We are very much looking forward to our life in PR, and right now we need to get past the process of finding a home to actually sealing a deal. While I know that we will need to get an Attorney involved, I am hoping someone here can help us out with our questions and proper terminology.
Thank you,
Danielle
The buyer fees associated with closing on a property in PR
Hi.
We are in the process of also purchasing and will finance through a PR Bank.
We've been advised to seek the advice of a PR Attorney to make sure we are aware of everything we need to know.
I will be following this post.
Good Luck!
We do have members that are realtors and some in the mortgage business, however they come and go so it is hard to know when you are going to get an answer to these complicated questions.
Not all owners would go for owner financed, but it is a very quick close if they do. Just make sure you have a clear title, title insurance and that the taxes on theproperty are up to date.
You need a local lawyer, as to IRS, they are not involved, you are dealing with Hacienda which is a separate taxation system.
I would talk with a realtor and a local lawyer about these questions once you get here.
I suggest you rent for 6 months to a year before you purchase property, you want to make sure the community is right for you first and take your time selecting the perfect home.
Thank you both for your responses. We have an owner who is willing to finance and we were originally looking at a lease with an purchase option. We do have a realtor (who really represents the seller) and know that we will need a lawyer.
Out of curiosity, does anyone know If it is standard in PR, to request a non-refundable deposit in a lease w/option scenario? If so what type of deposit is usually requested?
Thanks to all!
Lease to buy has no refund if you do not buy. If you do buy it is applied to the sale.
You have to be damn sure before you do a lease purchase agreement but if you do the individual should be checked, he could be a scammer, use your lawyer and nobody eLse
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