Buying Property in Puerto Rico: Similarities and Differences

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There are many similarities and even more differences when buying property in Puerto Rico as compared with the states. So I decided to create a list for easy comparison. Can you think of any other similarities and differences when buying in Puerto Rico?

Buying Property in Rincon, Puerto Rico

We are new homebuyers in Rincón, Puerto Rico, but we had been looking for a property in Puerto Rico for some time.

In 2008 we attempted to purchase a property -a finca- in Lares, in the central part of Puerto Rico. In 2010 we also had another contract to buy a property in San Sebastian. It is from these experiences and our current experience buying our house in Rincon that we’ve learned that buying property in Puerto Rico is not exactly what you might expect stateside. We own properties in Colorado also so we do know about that process too. In some ways buying a property in Puerto Rico is quite similar to in the states, and in others, it is very different. Here are some of those similarities and differences:

Similarities:

  • Puerto Rico is part of the United States and so Federal regulations do apply to housing.
  • Most banks/mortgage lenders require the same paperwork: application, appraisal, survey, etc
  • You need a contract to buy/sell
  • The deed/title proves you own it. In Puerto Rico you own property basically just as in the states.
  • You will want to make sure the deed is clean with no liens including utilities.
  • You will have a closing and they will give you the keys. It is very informal with less paperwork compared to the states
  • You can work with a real estate agent or with the seller in “for sale by owner”
  • Closing with “cash” instead of a mortgage is less hassle

Differences:

  • Puerto Rico does it DIFFERENT. Puerto Rico has its own government and housing stimulus packages and requirements that differ
  • You can’t use a mortgage lender in the states. It must be a Puerto Rican lender.
  • The paperwork may be in Spanish (or it may be in English)
  • There is no MLS -Multiple Listing Service. This makes it very hard to search for a property in Puerto Rico.
  • Because there are so many people who sell “by owner” and because there is no MLS, you will be doing a lot of calling and setting up appointments to see houses instead of doing them all at once
  • Puerto Rico’s title laws do NOT guarantee a spouse (especially a woman) will inherit the property if the other spouse (the man) dies so this must be considered or explicitly stated in a will or other legal document
  • Notaries in Puerto Rico MUST be a lawyer. Basically you will need a lawyer at some point in the process if you are planning to buy a house in PR
  • The negotiation is generally not written out. In the states all offers need to be written. In PR, in our experience, only the contract and final paperwork was written out
  • Many houses, especially outside of San Juan or out of a subdivision are “non-conforming” in one way or another. This may make it difficult to buy a house with a mortgage. In our attempt to purchase the Lares property they found that the access road to the house was non-conforming as it went over a river. Other things could be if the septic tank is not accessible or even if the house is made out of wood like ours in Rincon. There are “non-conforming” houses in the states as well, but there seem to be a lot more in PR. This also makes it hard to get an accurate appraisal as there are often no “comparables”
  • There is a preference for concrete houses over wood for a few reasons (insurance, mortgage companies)
  • People buy houses with cash a lot more often than in the states. This is often to avoid a lot of this red-tape.
  • Prices may be ridiculously high or low. Because of the lack of true value appraisals, it’s sort of whatever goes.
  • Property tax is very low and sometimes nothing at all in Puerto Rico, especially for people with only one property that they live in (as opposed to a vacation home).
  • A note on buying in Rincón specifically compared with some other areas: Houses can be a lot more expensive in Rincón. Puntas, specifically even more so. Anything west of the 2 is more expensive than east of the 2. This is mainly because of the influx of stateside people willing to spend more (supply and demand).

These are just a few examples of differences in buying a house in Puerto Rico as compared with the states. As for us, the property deal in Lares fell through for a few of these reasons. We were attempting to purchase it with a mortgage, but it not only  had problems because it was non-conforming but also because the title was not filed correctly. With the Rincon property we determined that it would be best to get a personal loan from the states (a 401(k) loan) instead of getting a mortgage to avoid a lot of the hassle and since we knew we might be given some grief over one of the buildings being wooden. We did get a lawyer because 1) you have to for the paperwork and 2) to make sure everything was titled correctly.

Overall, buying a property in Puerto Rico can be somewhat of a challenge if you’re used to the way things are in the states, but it is really not too bad and in some ways it’s actually better/easier. In any case, we are so happy we did and we can’t wait to get back to our home in paradise. If you’d like to check out our property, here are some pictures and videos.

* This post was first written in collaboration with Rincon Life and Rincon Vacations.

 

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Insta-Lawn

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At one of our rentals, the backyard was just pure dirt. We had been wanting to put in a yard but thought we would wait until about a year after since we had done so much work to it. Well, this was the one that was abandoned prior to the end of the lease term, so when we got new tenants in, we let them know we would like to put in a grass yard in the back, but only if they would be willing to water it (since they pay water).  After they settled into the routine of living in the house, they got back to us that they would like the lawn and would be willing to water extra for the first month or so.

So we got to work. We ordered the compost to amend the soil and tried to line up a rototiller from my brother who does landscaping. Then we ordered the sod. Sod is much more expensive than grass seed, but it creates an insta-lawn. One moment it is dirt, and the next it’s a yard. Kind of like putting down carpet or something. So Britton worked from home on Friday and once his work day was over he was over shoveling compost into the yard.


A big pile of composted cow poo

Once the compost was transfered to the yard, it was time to till it in. That’s where the roto-tiller came in. We hauled it over but once we figured out how to start it, the tires locked up and it wouldn’t move at all. That meant: hand shoveling to till it. So the three of us -Britton, me and Martin our tenant were all out there until dark tilling the backyard.


When the roto-tiller broke

Then Saturday morning Britton worked by himself installing the sod. When he came home he was worn out! But I came over to see the outcome and it looks great!

Here are some before and after pictures:


Dirt Yard Before


After: Backyard with grass


Before: Britton is raking the tilled compost to flatten it before laying the sod


AFTER


AFTER!

We just hope that our tenants keep it well watered for the first week/month. At least we put it down in September when the weather is not quite as intense. The tenants seemed very happy with the results as did we, which is great for everyone!

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Quinceañera Party in Greeley

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This weekend we had a chance to attend a Quinceañera for a girl that used to be our neighbor.  They moved a few years back but they always make a point to stop by at Halloween and it’s always cool to see them and how much they’ve grown!  Well the other week Lizeth stopped by and delivered an invitation to her 15th birthday (Quinceañera). I can’t believe she’s fifteen! She was just a tiny kid when she lived next door!


Cassie with our former neighbor Lizeth

It was held at Island Grove Park in Greeley.  There are numerous buildings out there that are used for a lot of different events.  There were actually two quinceanera parties going on at the same time in two different buildings. We accidentally went to the wrong one at first, but it was cool to see two different ways of throwing a similar party. Island Grove is also where the Greeley Stampede is held every year.

Living in Greeley has allowed me the opportunity to live closely with lots of people with lots of different backgrounds.  There are Russians, Germans, , Mexicans, Somalis, etc.  The Quinceañera is a pretty big Mexican celebration.  I hadn’t ever been to one before.

I’d describe it like a wedding.  It’s a pretty big production with lots of food, drink, music and dance.  The food was good.  Really good.  I love tortillas and meat and there was plenty of it!  In fact there were two buildings being used for separate parties.  From what I understand the whole family chips in.  Someone will buy food, someone entertainment, someone will rent the place, etc.  I imagine that makes these huge celebrations much easier to throw!  It would be pretty expensive for one person to pay for.


We got a visit by the Mariachi Singer that made Cassie turn bright red!


It was fun to see two different parties (Lizeth on the left and the other one on the right)

It really reminded me of a traditional American wedding -for one person instead of two.  Except instead of a garter belt they do a ‘shoe change’.  From what I understand this is a change from ‘flats’ to ‘heels’.  Traditionally in the past women weren’t allowed to wear heels until after they turned 15 and started womanhood. A Quinceanera is sort of like an old fashioned debutante ball. Then they have chamberlains and dance. There are supposed to be 14 pairs of young people dancing together, plus the quinceanera (the girl turning 15) and her partner to represent 15 or in Lizeth’s case, she just had the boys plus her.


After the traditional stuff, it is a big dance for everyone to join in on!

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Algunos Verbos en Presente

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Today’s Spanish tip are about some of the more commonly used verbs.


Bailar -the word “to dance” with its root and -ar ending that gets conjugated

As a grammar review, a verb is an action word -something that the subject of the sentence does. In English the “infinitive” of a verb starts with “to”. For example: to be, to do, to have, to go, to know, to want, to run, to sing, etc. In Spanish, the word “to” or “a” is not usually used to designate the infinitive. Instead, they end in “r” for example:

Estar- To be (temporarily)
Ser -To be (more permanently)
Hacer -To do
Tener- To have
Ir- To go
Saber -To know (something)
Conocer -To know (someone or some place)
Querer- To want
Correr -To Run
Cantar -To Sing

In English, conjugation of verbs is nearly non-existent except in “to be” which is a very IRREGULAR verb. For example (present tense):

To Be:
I AM
You ARE
He/She/It IS
They ARE
We ARE

In other English verbs the conjugation is simpler.
To Sing:
I SING
You SING
He/She/It SINGS
They SING
We SING
(Notice the only change is is the he/she/it with the s at the end)

In Spanish it’s a little more involved, but fairly easy to learn to conjugate. For a simple regular Spanish verb, here are the basics:
Cantar (to sing)

Cant-ar -The beginning part or root stays the same. Cantar is considered a regular -ar verb. The ending -ar is the only thing that will change:

Yo canto
Tu cantas
El/Ella/Usted canta
Ellos/Ellas/Ustedes cantan
Nosotros cantamos.

Other examples of regular -ar verbs include: caminar (to walk), parar (to stop), bailar (to dance).

Other verbs are -ir or -er verbs. Like the regular verbs escribir (to write), leer (to read).

Yo escribo
Tu escribes
El escribe
Ellas escriben
Nostotros escribimos.
Notice that only the “yo” or “I” form is still just an “o” the rest have changed because of the verb.

-Ir and -er verbs are very similar in their conjugations.
Yo leo
Tu lees
El lee
Ustedes leen
Nosotros leemos.

The only real difference here is in the “nosotros” (we) form where it stays an “e” whereas with the -ir verb it matches with “i”.

In Spanish, unlike in English, you do not always need to say they subject because the conjugation (usually) tells you who is talking to whom. So you can leave off the “yo” when you say “leo” it is implied that “I read”.

Examples in a sentence:

Leo una parte de un libro cada noche despues de caminar o cantar.
(I read part of a book every night after walking or singing.)
Notice that in this case the gerund form and the infinitive are the same. In English these change to the -ing form but not in Spanish. In your everyday world notice that “No Smoking” in Spanish is “No Fumar” instead of “No Fumando” which would be the gerund form.

Ustedes necesitan escucharme bien. Voy a escribir un blog fantastico acerca de conjugar verbos y pienso que toda la gente en el mundo va a leerlo.
(You all need to listen up. I am going to write a fantastic blog about conjugating verbs and I think that everyone in the world is going to read it.) *Not really…conjugating verbs is necessary but not really a fun topic :-)*

Verbs are very important in a language. It tells what is happening. So it is important to learn to conjugate verbs in order to not speak like Tarzan. For example: “Go. Store. Food.” or “Hungry. Has. We.” That might get the point across but not very well…

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