Before listing your property for sale, it is important to make sure that your property is ready to sell. Therefore, it is important to be clear about the following issues:
A. Sale of the property as heir.
– If a family member passed away and did not leave a will, you must make a declaration of heirs and a release from the Dept. of Hacienda with your estate. If a relative passed away and did not leave a will, you have to make a declaration of heirs and a release from the Treasury Dept. with your estate to determine if there are debts or not, and in this way to know what would be your surplus in the sale of the property.
– If you have already made the declaration of heirs and the relict estate, but the property registry does not show the complete documents (it is assumed that you as the new owner or the notary attorney has filed with the property registry) your property is not ready to sell.
Note: Property Advisers Real Estate, we are your Real Estate advisors, for legal matters consult the notary lawyer of your preference.
B. Owner seller not resident in PR.
– The Government of Puerto Rico makes a withholding of 15% or more of the cost in which you bought the property, depending on your case, for being a non-resident seller of Puerto Rico,
– If during all this period of time your property was rented, it is important that you have your tax payments up to date with the CRIM. If you do not have your payments up to date, you will have to make the surcharge payments to the CRIM on the same day of the closing of the sale and purchase of the property.
Note: Property Advisers Real Estate, we are your advisors in Real Estate, for legal or tax issues, consult the notary lawyer or accountant of your preference.
C. Owner seller with unpaid property.
– Before putting your property for sale, ask for your certified letter of mortgage debt balance. If possible, ask the bank or your preferred attorney to give you an estimate of the costs of paying off your mortgage, stamps and legal fees on the day of closing. By doing this exercise, you will know how much the actual estimated actual surplus would be so that you can make the right decision in putting your property up for sale.
D. Property Acceptable for Financing.
– For purposes of all mortgage financing, if your property has had an extension such as a carport built on it, which encroaches on the side property, the property would not be approved for financing.
– If you built a storage house in the yard and it obstructed the property line or was built under electrical wires, your property does not pass for financing.
– If you added an extra room and put a door or window outside of the FHA approval code in order to sell your property, your property will not be approved for financing.
– Your property has a septic tank and it is located or constructed incorrectly, your property does not pass financing.
Note: Property Advisers Real Estate, we are your Real Estate advisors, for structural construction issues consult with a structural engineer certified by DACO and HUD.
E. The current reality in the Real Estate market in Puerto Rico
Currently, as a real estate broker, I meet daily with sellers who want to sell their property for more than its real value, which is fine since it is always the owner-seller who determines the sale price. What happens is that not every buyer has $15,000.00 to $60,000.00 in their savings account to pay the excess of the actual appraised price, since every mortgage loan is based on the amount the property is appraised at.
I know what you are thinking, that is not my problem as the seller, if you don’t have the money I am not in a hurry, since there are no properties to sell I know that sooner or later my buyer will come up with the price I am asking. This is very true since this is what is happening, what you don’t know is how long this reality is going to last.
Today there are many buyers who are taking advantage of the low interest rates offered by the federal government, but have not been able to buy because the properties available from the sellers stand firm waiting for the price they want to get. This practice of the sellers as I said earlier is fine. Actually at this point the seller has the opportunity to sell his property for the asking price if he can get a buyer who has his savings and is willing to pay the difference from the appraised price. The seller should keep in mind that if he cannot sell his property for the asking price, he has the opportunity to take advantage of the historical moment we are living in to sell his property for the right price. This is because it is projected that once the foreclosures of the properties begin (today they are in moratorium), the offer will return with more strength. It will happen that the interest rate will go back up little by little, leaving the seller unable to sell his property, and if he sells it, it will have to be below what he is asking. The situation could also arise of achieving the sale by having to pay the deficit between the price and the debt of the property.
If you need more detailed advice on any of these issues, please contact us and we will be glad to help you.
