P.R. Laws tit. 20, § 3050
The Department of Consumer Affairs shall not register or issue any registration certificate whatsoever, unless the proprietor of the real property located outside of the Commonwealth of Puerto Rico has posted in favor of the Commonwealth of Puerto Rico and deposited in the Department of Consumer Affairs a bond in the amount of one million dollars ($1,000,000) or six percent (6%) of the sales price of each real property on the date any sale or option to purchase contract is executed, as determined by regulations. Said bond shall be approved by the Secretary of the Treasury and issued by an insurance company duly authorized to do business in the Commonwealth of Puerto Rico, or a mortgage security approved by the Secretary of the Treasury. The insurance companies that issue such bonds shall present evidence attesting that they are authorized to do business in the Commonwealth of Puerto Rico.
The bond shall include the condition that the proprietor of the real property located outside the Commonwealth of Puerto Rico shall comply with all the provisions of this chapter and the regulations adopted by virtue thereof, relative to the sale of real property located outside of the Commonwealth of Puerto Rico. Said bond shall also stipulate that the revocation of the registration certificate shall not affect the effectiveness of the bond with regard to claims originated for acts incurred prior to the date of revocation.
The cancellation of a bond shall have the result of rendering the registration ineffective until a new bond is posted. Said bond shall answer for any damages or losses caused to any person due to breach of contract and claims for defects or vices of the property, whether involving deception or defective construction thereof or noncompliance with the provisions of this chapter or the regulations issued thereunder.
Likewise, the bond shall remain in effect for two (2) years as of the date of execution of the final bill of sale of the real property.
Said bond shall not be required for the sale of residences located outside the Commonwealth of Puerto Rico when, as a result of the real estate transaction, the buyer receive the warranty provided by the Home Owners Warranty Program endorsed by the National Association of Home Builders.
History —Apr. 26, 1994, No. 10, § 27; Sept. 26, 2005, No. 118, § 6.