Understanding Closing Costs in St. John & the U.S. Virgin Islands

Thinking about buying or selling real estate anywhere on St. John, whether Coral Bay, East End, Cruz Bay, or the quieter North Shore and wondering what closing costs actually look like across the U.S. Virgin Islands? You’re not alone.

Most closings in the USVI include familiar fees seen in mainland U.S. transactions, alongside a handful of territory-specific taxes, customs, and legal procedures that can surprise buyers and sellers if they are not prepared.

This guide breaks down typical line items, how to estimate total costs, and a practical checklist to keep your closing smooth, predictable, and on budget, no matter where on St. John you are buying or selling.

How Closings Work in the USVI

While St. John is part of the United States, the territory has its own laws governing real estate, taxes, recording procedures, and closing customs. The USVI Bureau of Internal Revenue (BIR) and the Recorder of Deeds set many of the fees and requirements.

Closings are typically handled by:

• Local title companies

• Licensed closing agents

• Escrow attorneys or law firms

They conduct the title search, prepare closing documents, coordinate escrow, and ensure compliance with USVI laws.

Remote & Off-Island Closings

Because many buyers are stateside:

• Remote closings are common

• A Power of Attorney (POA) may be used

• Remote notarization may or may not be accepted depending on the closing agent and current rules

Always confirm the required signing procedures early.

Territory-Specific Fees

The USVI has its own:

• Stamp/Transfer tax (based on sale price)

• Recording fees

• Withholding requirements for nonresident sellers

Who pays these fees can vary by custom and contract.

Buyer Closing Costs in the U.S. Virgin Islands

Buyer costs depend on the price point, whether you are financing, and the logistics of island-based service providers.

If You Are Financing

• Loan origination or application fee: 0.5%–1.5% of loan amount

• Lender appraisal: $500–$2,000+ (varies by property type and appraiser travel)

• Credit/underwriting fees: $25–$200

Costs Most Buyers Should Expect

• Title search, title insurance, or attorney title opinion:
  Search/escrow fees: $300–$1,500
  Title insurance: approx. 0.3%–1% of purchase price

• Recording fees: $50–$500

• Stamp / transfer tax (if buyer is responsible per contract)

• Home inspection: $300–$800

• Special inspections (septic, mold, termite, structural): additional

• Boundary or As-Built Survey: $500–$3,000+

• Flood zone & hazard certification: $50–$300

• Insurance premiums (home + windstorm + flood): first year paid up front

• Escrow/closing agent fees: $300–$1,200

• Prorations for taxes, HOA dues, and utilities

• Wire fees, courier, POA or apostille costs: $25–$75 per wire

Cash Buyers

Cash buyers avoid lender fees but still pay:

• Title search and insurance

• Recording fees

• Inspections

• Any transfer or documentary taxes allocated to them

What Buyers Should Budget

• With mortgage: ~2%–5% of purchase price

• Cash buyers: ~1%–3% (excluding transfer tax if buyer pays it)

Seller Closing Costs in the U.S. Virgin Islands

Seller costs are driven by commission, title services, transfer taxes, and loan payoff.

Common Seller Fees

• Real estate commission: 4%–6% (varies by brokerage and negotiation)

• Owner’s title policy: 0.3%–1% of sale price (custom varies in USVI)

• USVI Stamp/Transfer Tax: usually seller’s responsibility unless negotiated:

  • 2% on $350,000 and under

  • 2.5% from $350,001–$1M

  • 3% from $1,000,001–$5M

  • 3.5% over $5M

• Attorney/closing agent fees: $300–$1,500+

• Mortgage payoff plus release recording fee

• Prorations for taxes, HOA dues, utilities

• Repairs or negotiated credits (if applicable)

• Withholding for nonresident sellers (similar to FIRPTA): consult a tax professional

What Sellers Should Budget

Approximately 5%–10% of the sale price, plus transfer taxes and any applicable withholding. This does not include your mortgage payoff.

Estimating Total Closing Costs

Example: Buyer at $500,000 (with mortgage)

• Lender fees: ~$5,000

• Appraisal & inspections: $1,000–$3,000

• Title & recording: ~$3,000

• Insurance & prepaid items

• Any transfer tax allocated to buyer

Plan on roughly $10,000–$20,000 in closing expenses.

Example: Seller at $500,000

• 5% commission: $25,000

• Title & closing: ~$3,000

• Transfer tax: $12,500 (2.5%) unless negotiated

• Mortgage payoff, prorations, and withholding (if any)

What Can Affect Your Estimate

• Remote signing, couriers, and POA

• Providers traveling from St. Thomas or the mainland

• Insurance requirements for hurricane/wind/flood

• Who pays what (negotiated in contract)

• Stamp/transfer tax brackets

Who Pays What in the USVI

There is no universal rule, unlike many mainland states.
Responsibility varies by:

• Local custom

• Community (Cruz Bay vs. Coral Bay vs. East End can differ)

• Negotiation

• Contract language

Always ask the closing attorney or agent for an itemized estimate upfront.

Practical Checklist for a Smooth USVI Closing

Request Estimates Early

Buyers:

• Loan Estimate

• Closing Disclosure

• Title & recording fee estimate

Sellers:

• Seller’s net sheet

• Detailed closing statement

• Transfer tax allocation

Confirm with Closing Agent

• Title commitment

• Settlement statement

• Payoff figures

• Tax & recording responsibility

• Remote signing or POA requirements

Ask Your Team

• What is the current USVI transfer tax rate for this property?

• Who pays the owner’s title policy?

• Are there HOA/condo transfer or estoppel fees?

• Will there be withholding for nonresident sellers?

• What safeguards are in place for wiring instructions?

Have These Documents Ready

• Signed contract

• ID or passport

• Payoff statements

• HOA docs & estoppel

• Updated survey (if available)

• Insurance quotes

Risk Checks

• Verify wiring instructions by phone via a trusted source.

• Request full title search & insurance.

• Understand windstorm, flood & hurricane coverage.

• Confirm tax implications early.

Final Thoughts

Closing costs in St. John and the broader USVI include many familiar items plus a few territory-specific procedures. With early planning, clear fee allocation, and guidance from your agent and attorney, your closing can be smooth, predictable, and free of last-minute surprises.

If you want a precise closing cost breakdown tailored to your property, whether buying or selling, reach out to Dwight Lascaris for local expertise and real-time guidance from offer to close.