Closing day in Dorado should be exciting, not confusing. If you are buying in a resort or gated community, you may wonder how much cash you will need beyond your down payment. In this guide, you will see what buyer closing costs include in Dorado, the ranges you should plan for, and how to lock in accurate numbers early. Let’s dive in.
What closing costs include in Dorado
Your cash to close is your down payment plus buyer closing costs and any prepaid items and reserves. Many line items look similar to the mainland United States, but Puerto Rico has its own practices for notaries, recording, and municipal taxes. Here are the main categories you should expect.
Lender and loan fees
Lenders charge for processing and underwriting your loan. You might see an origination fee, which can be 0 to 1 percent of the loan amount or a flat fee. Appraisals for Dorado resort or luxury homes typically run about $600 to $1,500. Smaller items like the credit report, flood certification, and tax-service fees often total $25 to $300. Points to buy down your rate are optional and specific to your scenario.
Title, escrow, and notary services
A title search confirms clear ownership and any liens. Your lender will usually require a lender’s title insurance policy, which buyers typically pay. An owner’s title policy is also available; who pays for it varies by local custom and negotiation. Puerto Rico closings use notaries for the public deed, and notary fees can be a notable cost. The settlement or escrow agent also charges a fee for coordinating the closing.
Government recording and taxes
Recording fees are paid to the Registro de la Propiedad to register the deed and mortgage. Documentary or stamp taxes can apply to deeds and mortgage instruments, and the specific amounts and payer depend on Puerto Rico rules and your contract. Property taxes, known as contribución sobre la propiedad inmueble, are prorated at closing, and the municipal tax authority is CRIM (Centro de Recaudación de Ingresos Municipales).
Inspections and survey
General home inspections typically range from $400 to $900 and can be higher for large or complex properties. Specialized inspections, such as pest, mold, roof, pool, structural, or seawall, can range from $150 to $1,000 each. A boundary or land survey, when required, can start around $500 and increase with lot complexity.
HOA and resort community fees
Gated and resort communities often charge a transfer fee or capital contribution when a property changes hands. These can run from a few hundred to several thousand dollars. Expect an estoppel or payoff certificate from the association, often $100 to $500 or more in high-end developments. Communities may also require deposits or reserves for amenities, key cards, or gate access. Monthly or annual HOA dues are commonly prorated at closing.
Insurance and prepaid items
You will need a homeowner’s insurance binder, with the first-year premium often paid at closing. Dorado’s coastal exposure can raise premiums, and flood insurance may be required if the home sits in a high-risk zone. Lenders also collect prepaid interest from the closing date to your first payment. Many loans require initial escrow reserves for property taxes and insurance, often 2 to 6 months of payments.
Local professional and misc. fees
If you choose to have a buyer’s attorney, plan for a separate fee. Courier and wire fees usually range from $25 to $100 or more. Always check for any local municipal charges that can apply to your specific property.
Dorado and resort factors to plan for
HOA and amenity add-ons
Luxury communities near beaches and golf courses often charge higher transfer and initiation fees. Watch for private road or community maintenance assessments and any special assessments. You may also encounter activation fees for amenities, security deposits, or gate access devices.
Coastal insurance realities
Many Dorado homes sit in or near flood zones. Lenders commonly require flood insurance in high-risk zones, and wind or hurricane coverage can increase costs. Higher insurance can also raise your initial escrow reserves at closing.
Title history and notary practice
Older Puerto Rico properties can have more complex title chains, which may require thorough review. Closing documents are formalized by a notary in a public deed, and you should expect Spanish-language documents with bilingual support as needed. Confirm who pays the owner’s title policy and notary fees early, since local custom can vary.
Taxes and prorations
Property taxes are prorated through CRIM based on your closing date and contract terms. Recording and documentary stamp taxes apply to deeds and mortgages in Puerto Rico, with amounts and responsibility set by law and your agreement. Your settlement team will calculate these based on the latest rules.
How much to budget
A common planning range for buyer closing costs, excluding the down payment, is 2 to 5 percent of the purchase price. In Dorado’s resort and gated communities, the total can land at the higher end or above. It is prudent to plan for 3 to 6 percent when insurance, HOA transfers, and escrow reserves are higher.
Real-world examples
These illustrations show how totals can vary with price point and community factors.
Example A: Single-family resort home at $800,000 with 20 percent down
- Lender fees and appraisal: about $3,400
- Credit, flood cert, tax-service, underwriting: about $300
- Title, escrow, and lender’s title policy: $2,500 to $4,000
- Notary, deed prep, and recording stamps: $1,200 to $3,000
- General and specialized inspections: about $1,500
- HOA transfer, estoppel, and community fees: $1,500 to $4,000
- Insurance and flood for first year: $2,500 to $6,000
- Prepaid interest and escrow deposits: $4,000 to $8,000
- Miscellaneous, including survey if needed: about $600
Estimated buyer closing costs, excluding the down payment: roughly $18,000 to $32,000, or about 2.25 to 4 percent of price. Higher insurance or community reserves can push totals higher.
Example B: Condo in a gated community at $450,000 with 10 percent down
- Lender fees and appraisal: about $1,800
- Title, escrow, and lender’s title policy: $1,800 to $2,500
- Notary and recording stamps: $800 to $1,500
- HOA estoppel and transfer fees: $500 to $1,500
- Home inspection and pest: about $800
- Insurance, flood, and initial escrow: $2,000 to $3,500
- Prepaid interest: about $1,500
Estimated buyer closing costs, excluding the down payment: about $9,700 to $13,600, or roughly 2 to 3 percent of price.
Step-by-step: Pin down your cash to close
- Request a Loan Estimate from your lender early so you can see lender fees, rate options, and any points.
- Ask the HOA for the resale package and an estoppel letter to uncover transfer fees, capital contributions, special assessments, and community deposits.
- Obtain insurance quotes, including flood and wind coverage, to confirm premiums and escrow requirements.
- Confirm who pays the owner’s title policy and notary fees with your title company or attorney, and get written estimates of title and recording charges.
- Schedule inspections and add specialized inspections if the property has features like a pool, seawall, or complex roof.
- Ask your lender about escrow reserves for taxes and insurance and how your closing date affects prepaid interest.
- Review property tax proration practices with your settlement team and confirm CRIM details.
- Compare your Closing Disclosure to the Loan Estimate and ask questions well before the three-day review window ends.
Smart ways to manage costs
- Negotiate a seller credit toward your closing costs as part of your offer strategy.
- Compare lenders and rate options to weigh fees, points, and long-term savings.
- Consider a closing date that reduces prepaid interest or fits HOA proration cutoffs.
- Work with your insurance agent on coverage and deductibles that meet lender requirements and your risk tolerance.
How Gigi Realty PR helps you
You deserve clear numbers and a smooth path to closing. With a boutique, concierge approach and a data-driven mindset, we help you estimate costs with precision, request the right HOA and title documents early, and line up quotes for insurance and inspections. Our team is active in Dorado and greater San Juan resort communities and is comfortable supporting clients in English, Spanish, and French. Whether you are buying a lifestyle home or an investment property, you get advisory plus execution from first tour to final closing.
Where to confirm your numbers
- Your lender’s Loan Estimate and Closing Disclosure show fees, escrow reserves, and your final cash to close.
- The Registro de la Propiedad de Puerto Rico outlines deed and mortgage recording processes and fees.
- The Departamento de Hacienda provides rules on documentary and stamp taxes for property transfers.
- CRIM (Centro de Recaudación de Ingresos Municipales) covers municipal property taxes and proration.
- The Colegio de Notarios de Puerto Rico can provide guidance on notary practice and fees.
- Local title companies, attorneys, and HOA documents state transfer fees, estoppel charges, and community reserves.
Ready to buy in Dorado with confidence? Reach out to Gigi Sheppard for a clear, personalized closing cost plan and a seamless, concierge-level purchase experience.
FAQs
How much should I budget for buyer closing costs in Dorado?
- Plan for 2 to 5 percent of the purchase price, and for resort or gated properties plan for 3 to 6 percent due to higher HOA fees, insurance, and escrow reserves.
Who pays the owner’s title policy and notary fees in Puerto Rico?
- The lender’s title policy is typically buyer paid, while the owner’s policy and notary fees vary by local custom and negotiation, so confirm with your title company or attorney.
Are there extra fees for gated and resort communities in Dorado?
- Yes, many communities charge transfer or capital contributions, estoppel fees, amenity activation fees, and sometimes deposits or reserves; review the HOA resale package early.
Will I need flood insurance to close on a Dorado home with a mortgage?
- If the home is in a high-risk flood zone and your loan is federally backed, your lender will likely require flood insurance; premiums affect both your annual cost and escrow.
How are property taxes handled at closing in Puerto Rico?
- Property taxes are prorated at closing and handled through CRIM, and your lender may collect initial escrow reserves for future tax payments.
Which documents show my final cash to close?
- Your Loan Estimate shows early figures, while your Closing Disclosure, issued before closing, details the final cash to close and all fees.
