Obtain a property title report at the Property Registry
Agency: Property Registry
A Notary is an attorney at law licensed by the government of the Commonwealth of Puerto Rico to certify and attest as to, among other things, the legality of the transactions contained in the public deeds executed before him, the identity of the parties executing the public deed and the date and municipality in which the public deed was executed. Public deeds for the sale of real property must be prepared by a Notary and executed by the parties before the Notary. In order to prepare the public deed, the Notary requires a title report, usually 30 days or less before the execution of the public deed, which shows the status of the real property at the Registry of the Property, i.e., owner, mortgages, easements and other encumbrances. The title report will also specify whether documents have been recorded or are still pending recordation at the Registry of the Property. Notaries have new judicial powers under Act No. 282 of August 21, 1999 (“Ley de Asuntos No Contenciosos”), finally put into effect under new rules issued last year by the Puerto Rico Supreme Court (2011 TSPR 135 and Regulation 8021 of May 16, 2011).
With the approval of Law 210 of December 8th 2015, a property title report can be performed directly without any intermediaries by examining the Registry of the Property records online. However, the majority of owners still rely on Private Title Searches to complete the report. Additionally, at the time of execution of the purchase-sale deed, the notary public can connect again online with the Registry and verify if any changes have occurred since the date of the title report.
Time and cost: 1 day, USD 75 (USD 75 (Includes Private Title Searcher cost, if performed directly at the Registry: USD 15))
Obtain a property tax certificate from the Municipal Revenues Collection Center (CRIM)
Agency: Municipal Revenues Collection Center (CRIM)
Obtain a property tax certificate and value certificate by completing Form AD-25 at the Municipal Revenues Collection Center (CRIM). The property tax debt certificate will disclose property tax debts and the property tax liability of the property. The value certificate lists any applicable tax exemptions and shows property tax assessments as per existing valuations.
Since March 2016, this certificate can be requested and retrieved online. The digital certificate has the same validity as the paper certificate, and is valid for 30 days.
Time and cost: Less than 1day (online), USD 50
Obtain Title Insurance
Agency: Insurance company
Buyer obtains a title insurance policy. Although this is not required by law, it is highly recommended, and is required by all banks when they grant a mortgage. Title insurance policies insure that the sale of the property will be recorded at the Property Registry. Title insurance usually covers for any issue that may block the property transfer registration process, or for any outstanding debt or encumbrance that was not found during the due diligence process (or that it was not duly registered at the Property Registry).
Time and cost: 2 days, USD 3,000
The notary public prepares and authorizes and the parties execute the purchase and sale deed
Agency: Notary
The Notary must prepare the deed of purchase and sale to be executed by the parties in his presence. The Notary attests as to the legality of the transaction, the identity and personal circumstances of the parties (marital status, legal age, profession and place of residence) or, in the case of juridical entities, the personal circumstances of the authorized representatives, when and where the deed of purchase and sale is executed and that it was executed in the Notary’s presence.
Notary fees are negotiated between the parties and the Notary subject to the following requirements of law (as prescribed by Law 43 of 2009):
- If the purchase price for the property is equal to or less than $10,000, Notary fees are equal to $150
- If the purchase price for the property is greater than $10,000 but not more than $5,000,000, Notary fees cannot be less than 0.5% nor more than 1% of the purchase price for the property
- If the purchase price for the property exceeds $5,000,000, Notary fees are as set forth above up to $5,000,000 and, thereafter, are subject to negotiation between the parties.
Other documents such as a limited liability company resolution approving the transaction can also be prepared by the Notary for an additional fee.
Time and cost: 4 days, USD 8,287.22 (USD 300 (Corporate Resolution) + between 0.5% and 1% of property value (notary fees))
Purchase Internal Revenue Stamps and Registry of Property filling vouchers
Agency: Department of Treasury (Colecturia Digital)
Internal Revenue Stamps must be canceled on the original of the deed of purchase and sale and first certified copy of deed. The notary keeps the original and the certified copy is presented at the Registry. Vouchers for the Registry of Property must be bought before applying for registration. Since May 2018, both the stamps and the vouchers are available electronically at the Colecturia Digital website (https://www.registrodigitalpr.com/beta/como-adquirir2.php). Colecturía Digital also has more than 300 points of sale around the whole island for obtaining the digital stamps and vouchers, which includes commercial banks, savings and credit cooperatives, and municipal offices. As of January 2019, the most common practice in San Juan is to buy the stamps and vouchers in any of the authorized points of sale. If the user decides to purchase the stamps and vouchers directly at the Colegiaturia digital website, an additionally USD 10 fee will be charged.
The stamps and vouchers cost is calculated based on the property value following the Law on Notarial Tariff (Law No. 209 of 2015).
- Stamps to be canceled for the deed of sale and purchase:
- IRS for amounts exceeding USD 5,000: USD 2 for the first USD 1,000 and USD 1 for every additional USD 1,000 or fraction of a USD 1,000 thereafter.
- Legal Aid for amounts exceeding USD 50,000: USD 5 for each USD 50,000 or fraction thereof.
- Notarial aid stamp: USD 1
- Stamps to be canceled for the first certified copy of the deed of sale:
- IRS: USD 1 for the first USD 1,000 and USD 0.50 for every additional USD 1,000 or fraction of USD 1,000 thereafter.
- Legal Aid: USD 2.50 for every USD 50,000 or fraction thereof.
- Notarial aid stamp: USD 1
- Stamps to be canceled for registration of the deed:
- Filling Voucher: USD 15
- Registering fee: USD 3.806
- IRS Stamp: USD 0,50
The Notarial Guarantee Fund also offers a handy notarial calculator to estimate stamps and vouchers online: http://www.fianzanotarialpr.org/calnota/index.html
Time and cost: 1 day, USD 5,991.5
- Stamps to be canceled for the deed of sale and purchase: (i) IRS USD 965; (ii) Legal Aid USD 100; and (iii) Notarial Stamp USD 1.
- Stamps and vouchers to be canceled for the first certified copy of the deed of sale and purchase: (i) IRS USD 482,50; (ii) Legal Aid USD 50; and (iii) Notarial Stamp USD 1.
- Stamps to be canceled for registration of the deed: (i) Filling Voucher USD 15; (ii) plus and IRS Stamp of USD 0,50; and (iii) Registering fee of USD 3.806.
File and record the deed at the Registry of Property
Agency: Property Registry
The buyer files the sale and purchase deed at the Registry of Property. The Registry of Property records the sale and purchase deed in approximately six months. The deed of sale and purchase is filed at the Registry of the Property as soon as possible following closing. The deed of purchase and sale, pursuant to the Act 210 of December 8, 2015, must be reviewed by the Registrar, and either the Registrar notifies the Notary of defects or proceeds to record the same within 90 days after its filing in the Registry of the Property.
Time and cost: 180 days, USD 100
File the notice of sale with the Treasury Department
Agency: Treasury Department
The Notary Public has to file to notice of sale with the Treasury Department on or before the 10th day of the month following the transaction.
Time and cost: Less than 1 day (online), USD 20
File the notice of change of owner with the CRIM
Agency: Municipal Revenues Collection Center (CRIM)
The Notary Public or the owner has to file the notice of change of ownership with the CRIM on or before the 10th day of the month following the transaction.
Time and cost: 1 day, USD 25
