top of page
Search
  • Writer's pictureAlex Ortiz

Government Entities You Need to Know in Real Estate Transactions

When engaging in real estate transactions in Puerto Rico, understanding the roles of various government entities is crucial. These organizations play vital roles in ensuring that property transactions are legally sound and that the necessary taxes and fees are appropriately assessed. In this blog post, we'll explore three key government entities involved in Puerto Rico's real estate landscape: the Property Registry, the Treasury Department, and the Property Tax Agency.


1. Property Registry (Registro de la Propiedad):

   - The Property Registry in Puerto Rico is responsible for maintaining public records related to real estate ownership and transactions. It serves as the central repository for property deeds, titles, and other important documents.

   - When you buy property in Puerto Rico, one of the pivotal steps is recording the deed at the Property Registry. While this is not required for the title transfer to be valid, it tells everybody else that you own that particular property. It will also make it easier if and when you decide to sell. Recording fees are assessed based on the purchase price.

   - The Property Registry also grants access to property records, allowing interested parties to research property histories, confirm ownership, and identify any existing liens or encumbrances. These records are invaluable for due diligence during real estate transactions.


2. Treasury Department (Departamento de Hacienda):

   - The Puerto Rico Treasury Department, commonly known as Hacienda, is an essential player in real estate transactions, as it handles the collection of taxes and fees associated with property dealings.

   - Among the key taxes administered by Hacienda is the Non-Resident Withholding. You can read more here.

   - Hacienda also processes the real estate transfer return, collecting personal information on all parties, as well as property description, location, and transaction amount.


3. Property Tax Agency (Centro de Recaudación de Ingresos Municipales - CRIM):

   - The CRIM, or Property Tax Agency, plays a pivotal role in managing and collecting property taxes in Puerto Rico. It also handles main residence exemptions, veteran’s exemptions, among other incentives.

   - Property owners in Puerto Rico must pay annual property taxes to their respective municipalities. The tax rate may vary from one municipality to another and is typically calculated based on the assessed value of the property. In Puerto Rico, rates are between 9-11%.

   - Maintaining current property tax payments is imperative for property owners to avoid penalties or the imposition of a tax lien on their property by the municipality.


Comprehending the roles and functions of these government entities is fundamental when engaging in Puerto Rico's real estate market. Whether you're buying your dream home, investing in rental properties, or selling a piece of real estate, these organizations are essential to the process.


Before embarking on any real estate transaction in Puerto Rico, it's advisable to consult with a real estate attorney. At The Notary Lab, we provide guidance on the legal requirements, tax responsibilities, and the functions of these government entities to ensure a seamless and compliant property transaction, and to allow you to navigate Puerto Rico's real estate market with confidence and success.

55 views0 comments

Recent Posts

See All

Commentaires


bottom of page