P.R. Laws tit. 32, § 3353t
Whenever a trustee transfers or alienates trust property without committing breach of trust, the third party gains clear title from the trust and is not held liable to the beneficiary.
If the trustee, in breach of trust, transfers or alienates trust property to a third party for valuable consideration, the latter shall hold clear title from the trust and shall not be liable to the beneficiary; provided, that such third party was unaware of the trustee’s breach of trust or the unlawfulness of the transaction whereby such assets were acquired.
If the trustee, in breach of trust, transfers or alienates trust property to a third party who did not acquire such property in good faith, in accordance with the provisions of the previous paragraph, and such third party later transfers his interest to a purchaser in good faith, the latter shall hold clear title from the trust.
History —Aug. 31, 2012, No. 219, § 54.