Aug 20 2019
Buying Property in Puerto Rico
Posted in Real Estate News
The process of purchasing real estate in Puerto Rico is similar to most other places, including the mainland United States, however there are significant differences.
First and foremost, if you are purchasing Puerto Rico real estate and plan to finance the purchase, you will need to work with a recognized Puerto Rico lender. Most Puerto Rico banks, including Banco Popular, First bank and Oriental offer mortgage loans, but we have found the banks to be slow to communicate and process information resulting in long delays and frustration.
We recommend working with a specialized mortgage lender such as Moneyhouse, PenFed or Fembi. Their business model is built upon offering mortgages and their communication and speed with clients is far superior. Another alternative to the large banks is a local cooperativa, such as the Rincon Cooperativa, which offer competitive rates and more personal service if you are locally based.
If you are planning to purchase in cash, obviously there is no need for these institutions, but the process will mostly be the same.
Once, you are pre-qualified by a Puerto Rico lender, the earnest search can begin. It is always recommended to visit as many areas and neighborhoods as possible before settling on a specific area, go at night, go on the weekend and talk to neighbors and business owners.
Island West Properties works with all professional real estate brokers on the west coast of Puerto Rico and we co-broke (show our listings or schedule other brokers listings) with other brokers. However, many agents and brokers do not want to work with other brokers and would prefer to only show their own listings to their own clients.
It is important to work with a buying agent you trust and to let them contact the other realtors for the viewings, if you make initial contact, your representation could be compromised as the listing broker will list you as their client. Contact us for more details about this practice.
Once a property is found and you are ready to make an offer, the requirements vary from broker to broker, but usually a letter of intent and some sort of earnest money deposit is required in order for an offer to be presented.