Buying a condo in San Juan means planning for more than the purchase price. If you are relocating from the mainland or eyeing a unit in El Cinco, the mix of taxes, notary work, and registry steps in Puerto Rico may feel new. This guide breaks down what you might pay, who typically pays what, and how to budget with confidence. You will also get a step-by-step timeline and a simple checklist to keep your closing smooth. Let’s dive in.
What closing costs cover in Puerto Rico
You will see several categories at a Puerto Rico closing. The most common are deed and transfer taxes, documentary stamp taxes, notary fees, title search and title insurance, recording at the Registro de la Propiedad, and mortgage-related costs if you finance. You will also handle prorations for property taxes and HOA dues. Many items are customary but still negotiable, so confirm everything in your purchase contract.
Deed and transfer taxes
These are taxes tied to conveying real property. In Puerto Rico, transfer-related taxes are administered by the Departamento de Hacienda and must be paid before recording. Exact amounts depend on current statutes and whether any exemptions apply. Who pays is a matter of local practice and negotiation, so make sure your contract states the allocation.
Documentary stamps on deeds and mortgages
Documentary stamps are taxes on certain documents, including deeds, mortgages, and promissory notes. Stamps are affixed to the documents to show payment. Borrowers typically cover mortgage-related stamp taxes, which are calculated on the loan amount. Payment for deed stamps is negotiable between buyer and seller; confirm what your agreement says and have your notary calculate the exact stamp amounts.
Notary fees and the notario público
Notaries play a central role in Puerto Rico real estate. The notario público prepares and authenticates the deed and mortgage instruments, certifies signatures, and often coordinates the payment of taxes and fees. Fees may be flat or value-based and can vary by notary and transaction complexity. Buyers usually cover notary services tied to their mortgage and any buyer-side documents; sellers often cover deed preparation tied to their side. Confirm who pays what with your notary.
Title search and title insurance
A title search of the Registro de la Propiedad confirms ownership and checks for liens, encumbrances, easements, or judgments. Many buyers purchase owner’s title insurance for protection beyond the search. If you are financing, your lender will usually require a lender’s policy. Premiums are one-time and based on price or loan amount, depending on the policy type and insurer. Ask your title company or insurer for a current premium schedule and a preliminary title report early.
Registry and recording fees
Recording fees are paid to the Registro de la Propiedad to inscribe the deed and any mortgage. Proper registration protects your title and priority. Buyers typically pay to record the deed in their name and borrowers pay to record the mortgage. Confirm the current fee schedule with the registry covering San Juan and include those amounts in your closing estimate.
Mortgage-related costs if you finance
If you are taking out a loan, budget for application and origination fees, the appraisal, documentary stamps on the mortgage, registry fees for the mortgage, and related notary charges. Your lender will provide formal disclosures detailing these items. Review those early and compare to your notary’s estimates.
Prorations and HOA dues
At closing, property taxes, municipal taxes, and condo HOA dues are typically prorated as of the closing date. For San Juan condos, including buildings in El Cinco and nearby areas, confirm monthly dues, any special assessments, and the condo’s policy on prepaid or outstanding balances. Ask the seller for a current HOA statement and tax balance to avoid surprises.
Who typically pays in San Juan
Local custom varies, and many costs are negotiable. In many San Juan condo deals:
- Buyers often pay for notary work connected to their mortgage, title search and title insurance, registry fees to record the deed and mortgage, and mortgage document stamps.
- Sellers often pay broker commissions and may assume transfer-related taxes tied to disposition, but this can vary by negotiation.
The safest approach is to spell out each line item in the purchase contract and have your notary confirm the amounts during document preparation.
How much to budget: examples
Below are illustrative ranges to help you plan. These are estimates only — verify with your lender, notary, and Hacienda before closing.
Scenario A: condo purchase of $200,000 (San Juan)
- Title search and title insurance: from a few hundred dollars up to a couple thousand, depending on policies selected and insurer.
- Notary fees: several hundred to low four figures, based on scope and complexity.
- Recording and documentary stamps: several hundred to low thousands, driven by mortgage amount and stamp rules.
- Prorations: varies with closing date and HOA dues.
- Mortgage-related costs (appraisal, origination): several hundred to a few thousand per lender disclosures.
Scenario B: condo purchase of $500,000
- Expect the same categories. Premiums and stamp-related items that scale with price will be higher; flat or fixed components may remain similar. Plan for higher title and stamp totals than in the $200,000 scenario.
A simple rule of thumb: plan for title insurance, notary and registry fees, and stamp taxes to total a few thousand dollars on smaller condos, with amounts increasing as price and loan size rise.
Step-by-step San Juan closing timeline
- Early stage: Get mortgage pre-approval if financing. Order a preliminary title search to surface issues early.
- Contract: Your purchase agreement should list who pays each closing cost and target a closing date.
- Notary engagement: Choose a notary to prepare the deed and mortgage. Provide ID, contract, and lender details.
- Tax payments and stamps: Your notary will calculate documentary taxes and arrange for stamps before recording.
- Closing and funding: Sign deed and loan documents. Funds are disbursed per the settlement statement.
- Registration: The deed and mortgage are presented to the Registro de la Propiedad. Timing varies by office workload and document completeness.
- Possession: Transfer of keys follows contract terms, typically after closing when funds clear.
Your San Juan condo closing checklist
Use this list to get accurate numbers and avoid delays:
- Ask your notary for a written estimate that breaks out notary services, documentary stamps for deed and mortgage, and registry fees.
- Request lender disclosures for all loan-related fees, appraisal, and mortgage stamp taxes.
- Confirm current property tax and municipal balances, plus HOA dues and any special assessments.
- Verify the latest rules and rates with your notary, who can check with Hacienda and the registry.
- Order a preliminary title search and ask about owner’s and lender’s title policies and premiums.
- Specify in the contract who pays each line item so there are no surprises at the table.
Smart ways to control costs
- Compare quotes: Ask your notary for a clear fee schedule and timeline. If you need a second opinion, request one before you go hard on the contract.
- Clarify stamps early: Have the notary calculate deed and mortgage stamps as soon as the contract and loan terms are set.
- Align closing date: Time closing to minimize prorations if possible and to avoid rush charges.
- Avoid rework: Provide full legal names, IDs, and lender details early so documents do not need corrections.
- Choose the right title coverage: Review owner’s and lender’s policy options and deductibles; buy the coverage you need for your risk tolerance.
Work with a local pro you trust
A smooth San Juan closing comes down to clear numbers, clean documents, and the right team. If you want discreet, hands-on guidance for a condo in El Cinco or anywhere in San Juan, request a private consultation with Ana Rivera. You will get founder-led accountability, transparent estimates, and a concierge process from offer to registry.
FAQs
What are typical buyer-paid closing costs in San Juan, Puerto Rico?
- Buyers commonly pay notary fees for buyer-side documents, title search and title insurance, registry fees to record the deed and mortgage, and mortgage-related documentary stamps; exact allocation is negotiable and should be set in the contract.
How are deed transfer taxes and documentary stamps calculated in Puerto Rico?
- Transfer taxes and documentary stamps are set by the Departamento de Hacienda, with stamps applied to deeds and mortgage documents based on value or loan amount; your notary will calculate the exact figures under current rules.
Do I need owner’s title insurance for a San Juan condo purchase?
- Owner’s title insurance is optional but recommended for protection beyond the public record; if you finance, your lender will typically require a lender’s policy.
Who handles recording with the Registro de la Propiedad in San Juan?
- Your notary prepares and submits the deed and mortgage for inscription at the registry; buyers typically pay to record the deed and borrowers pay to record the mortgage, subject to contract terms.
How long does property registration usually take in San Juan?
- Timing varies with the registry’s workload and document completeness; ask your notary for current estimates for the San Juan district and plan for possible delays.
What closing costs should I expect if I finance my condo purchase?
- Expect lender application and origination fees, appraisal, mortgage document stamps, registry fees for the mortgage, and related notary charges, all itemized in your lender’s disclosures.
