Winter 2006-11Amendments to real estate brokerage law
Amendments to real estate brokerage law
The following are salient points of Law Number 118 of September 26, 2005, that amended the “Law to Regulate the Real Estate Business and the Profession of Broker, Seller or Real Estate Enterprise in Puerto Rico.”
Real estate brokers
Real estate brokers must post a bond for $10,000 if natural persons, and of $20,000 if corporations. Bonds must be issued by companies authorized to issue bonds in Puerto Rico.
Brokers must keep in escrow accounts all earnest money, down payments and other sums received. The accounts must be held in banks located in Puerto Rico. The depository banks must certify to the Department of Consumer Affairs (“DACO”) that the accounts have been opened.
Brokers must report to DACO all sales made to residents of Puerto Rico within the previous six months.
Properties outside Puerto Rico
A person engaged in the business of selling in Puerto Rico real estate located outside the island must register with DACO.
DACO may extend the registration requisite to owners of real estate located outside Puerto Rico that wish to sell it here. DACO may also require the seller to post a bond for one million dollars or 6% of the sale price (the law does not specify if the lower or the higher figure prevails). The bond must be in place for two years from the date of the sale.
© 2006 Goldman Antonetti & Cordóva, LLC