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Filing a Deed at the Puerto Rico Property Registry

May 3, 2017 Leave a comment

Good morning!

I am glad you are following this episodes. This is a VERY important one. So take a look and if you have any questions or need any help do not hesitate to email me, give me a call or post the question on this page.

Continue to do great!

Very truly yours,

Santiago Lampón

Filing a Deed at the PR Property Registry – Transcript

Hello my name is Santiago Lampón, I am a lawyer and a notary in Puerto Rico and welcome to Puerto Rico Legal Blog. In this episode I am going to show you only one document but it is a very basic and important document that I want you to ask from your notary every time you perform a real estate transaction.

The number 1 and number 2 item that people ask me about is how do I find my title, how do I find my deed after I do a closing. I am doing a series of episodes that are associated with the format or the form of a deed in Puerto Rico. If you go through the blog and you search the word deed, you are going to find the episodes, which I deal with that subject. Because a deed is the document that collects all the information, it’s the document that actually represents a real estate transaction in Puerto Rico. If you want to do a purchase and sale you need a deed. If you are going to do a donation you need a deed. If you are going to do a mortgage or cancel the mortgage you need a deed. The deed is the most important form of any other forms in Puerto Rico. For example wills have to be done through a deed. The most useful and generally used form of a will in Puerto Rico.

Now once the deed is done with regards to real estate properties, that deed has to be filed under property registry. Assuming the property is registered at the property registry. We have covered before that some properties are not at the properly registry that’s why I do videos on untitled properties. That’s another subject. Let’s stick to deeds. Once the deed is filed at the property registry the property registry issues a formal and very specific document that in Spanish, if you look at time you have minutes, sixty seconds. The word minute, which is also a document used in corporate law but at the end the letter “e” is substituted by the letter “a” and you have a “minuta”. In this screen I have a “minuta” which shows and what it represents and means is, something that happened at a given time. So let’s look at a document. Because after you are done with the closing ask for your “minuta” from your notary.

Now the “minuta” has a title of the property registry where it belongs to, you know where it is being registered and it also shows you the name of the registrar, the address and the phone number. So at the beginning you already have some very important information. Where you deed was registered, who is the registrar, the address and the phone number. Now, the book is organized by diaries. The document is in Spanish so I am going to translate as best as I can. “Entrada” means entry. Which is just a numerical sequence and “asiento” is chair but it actually translating to English, is “where it sits”. Since they have so many transactions coming in everyday they have to subdivide the numbers. So you have the diary, which in this case was 260,the entry number and the seating number. Those are the three numbers you need to find on the deed while it is pending recording. This one was presented on 4/3/2014 which means the 4th of
March 2014 (its in Spanish, if it were it English it would be 4th of march 2014) at military time, I don’t know why, 1:45 in the afternoon which is 13:45 for the year 2014. The person who present it, the name is called Coralis Rivera Alvarado she works for me. We handle our fillings ourselves. We want to make sure they are done on time. Then the person interested is the person who actually wants this deed to be filed at the property registry and whatever the deed represents registered. It is a public deed. This one was a mortgage cancellation and as I covered in another episode you have to file them at the property registry. It was deed number “blank” (again not disclosing private information) of the 28th of February of 2014. So it shows you when the deed was executed and it shows you when the deed was filed. So this was executed on the 28th of February of 2014 and it was filed on the 4th of March, 4 days later of 2014.

Now it says the notary in Santiago Lampón Gonzalez, yours truly. It has the address and it has the rights that were paid in conjunction or any other documents that were filed in conjunction with the deed. This is a “minuta de presentacion.” A minute of filing at the property registry and it is the document that I recommend that you obtain from your notary after closing is done. Down here has the seal of the property registry. It shows that your deed was actually filed. Like I said before in this case if the cancellation of mortgage is not filed at the property registry it doesn’t serve its purpose.

Again my name is Santiago Lampón. I am a lawyer and notary in Puerto Rico. I hope you have found this episode useful. Remember you can email me your quotations or post them right here on this page and I will look forward to be in communication with you. I hope you have a great day.

Categories: Uncategorized

Releasing a mortgage (LIEN) in Puerto Rico

May 2, 2017 Leave a comment

Hello!

I hope you are doing great! This video is excellent and can help you very much. Let me know if you need any help or have any questions.

Truly yours,

Santiago Lampon

Releasing a mortgage (LIEN) in Puerto Rico

Hello and welcome to this episode of Puerto Rico Legal Blog. My name is Santiago Lampon and I am lawyer and notary in Puerto Rico.

In this episode I am going to show you, I am going to cover a subject that sometimes baffles people who own property outside of Puerto Rico and do not know what exactly to do with their promissory notes once a mortgage has been paid. Mortgage by definition is something that is tied up to a property. You have the note (which is a promissory note) you promise to pay someone. Once that note is paid for, then you get that note back from the bank or the lender if it is a private loan. The important thing is that at the property registry, if it is a mortgage note, the mortgage is the guarantee of the note. It is not the note. It is not the debt. The mortgage is a recording done at the property registry to tie up your land, the title with the land, with the promissory note, so that you are unable to sell the land without paying the note. So once you pay it out and you get your note back you have to cancel that note at the notary’s office so that the notary can record the cancellation of the note and cancel the mortgage at the property registry.

They are two separate things. So you do the promissory note, you pay it out. The lender has to hold the note and when you pay the lender, the lender gives you the note and you say fine, I got the note. Believe me I have seen this many times. This has happened many times. That’s why I’m doing this video. They take the note and they shove it. Some people leave it in the I envelope and put it somewhere and then years later when they want to sell the property the notary says “where is the promissory note?” ” I don’t remember, I don’t remember the note.” And you find it, and what do I do with it and that’s what I’m going to show you. What do with that note?

Now I have here in this screen what is called a deed for the cancellation of a mortgage note. Now remember the promissory note has to have a mortgage associated with it. As I have covered in other videos the notaries practicing in Puerto Rico is very formal and it can only be done by lawyers. So you have here what was my deed number 21, it’s actually a sample. I took out the names and for example I put John Doe so I don’t disclose the name of the client. I also don’t disclose what the property is or anything like that but this was a deed, my deed number 21 and each deed for each year is sequential in number. This was done on the 25th of January of 2012. The person who had the note because the person paid out the mortgage, came to me, I identified the person and the person delivered to me the mortgage note so that I can have it cancelled and then I performed a certain action required on the law so that the note is duly cancelled and the note is attached to this deed.

Now what I do is, I prepare a certified copy of the deed as shown in this little note in the corner and I took that certified copy and send it to the property registry. The registrar looks at the deed and says this has been cancelled, goes to the official records, cancels the mortgage and then the property is free and clear of any liens.

Now it is very important in this regards that if you have a note you take it to a notary, the notary performs the requirements under applicable law, cancels the note and sends the notice to the registry so that your mortgage is cancelled. Otherwise you are going to have problems when you are going to sell the property.

If you have any questions you can send me an email or post it on this page. Again my name is Santiago Lampon. I am a lawyer and a notary in Puerto Rico. I hope you have enjoyed this episode and I hope you have a great day.

Categories: Uncategorized

State Insurance Fund – A Potential Liability Part 2

April 24, 2017 Leave a comment

Hello!

I hope you had an incredible weekend.

As I promised, here is part 2 on State Insurance Fund, so you can have more information on this subject. I hope you have a great week.

Yours,

Santiago Lampón

State Insurance Fund – A Potential Liability Part 2

Hello my name is Santiago Lampón, I am lawyer and notary in Puerto Rico and welcome to Puerto Rico Legal Video Blog. This is part 2 of a 2-part series regarding workmen comp in the real estate environment. What this means is that you are the owner of a given property here in Puerto Rico and you hire an outside firm or builder or company to do some kind of work on your property. I used as an example in the previous video a builder but it refers to anything.

You need to watch the first video because otherwise what I am going to give you now is going to be incomplete. Now let’s say you have someone coming in to your property to perform work and that someone has the workmen comp state certificate. By the way it is FONDO del seguro del estado, It is going to appear in the screen before. The short is the FSE.

Let’s say you have the FSE coverage, the workmen comp state coverage and your builder (which is the example that I have been using) has the coverage as well. The next question is, is the kind of work that you are performing in your property included in that workmen comp. In other words, did you tell the FSE, that what that guy is going to do, is report it to them, so that they can charge you the adequate premium for that work.

Let say you are building a pool and the guy walks in to build the pool. But you report or for whatever reason the category selected is: “Oh, is going to do windows” and an employee has an accident you are not covered. He is not covered either but you are not covered. See the thing is that what we are looking at protecting here is you as a property owner. The FSE is going to look at whether the guy, his boss, has workmen comp. If he does, fine. Now they are going to look at you as a property own if you have workmen comp, if you do, fine, if you don’t you are in problems.

Make sure you look at this for whatever services are going to be rendered inside your property since you are a real estate property owner, which is why you are watching this video. My name is Santiago Lampón, a lawyer and a notary in Puerto Rico and I thank you for watching. Please send me any question you might have by email or post them on this page. Have a great day.

Categories: Uncategorized

State Insurance Fund – A Potential Liabiity (Part 1 of 2)

April 19, 2017 Leave a comment

Hello!

I hope you are having a fantastic week. I leave you with useful information when dealing with workmen compensation.

There is a second part for this video. I will post it very soon.

Truly yours,

Santiago Lampón

State Insurance Fund – A Potential Liability (Part 1 of 2)

Hello, my name is Santiago Lampón. I am a lawyer and a notary in Puerto Rico ad welcome to this episode of Puerto Rico Legal Video blog. If you have any questions about the information that I am going to discuss just send me an email and the address will appear on the screen or you can post a message on here.

I am going to cover workmen compensation in Puerto Rico. I want you before I get into it, I want you to take the subject what you know about workmen comp and throw it out of the way, completely and let’s start from scratch about how it works here in Puerto Rico. I brought with me a drawing board not because it is too complicated but because I wanted to make sure I communicated in a way that it is understandable. So, let’s use the drawing board. I am going to communicate this from the perspective of someone who owns a property in Puerto Rico and is going to have to work performed in that property. The first individual I am going to include here is the property owner. I am just going to say prop owner. That’s the first layer of ownership. Below the property owner you have a builder. One arrow down you see a builder. Of course, the builder will go to the employee of the builder. You have the property owner, the builder and the employee of the builder. This is the guy, this is the individual that we are going to protect him or her but we are also protecting against. So, you are the owner and you have workmen compensation because your insurance agent told you are converable with compensation.

You bring in the builder, the builder is going to build the pool, redo the roof, whatever. The builder brings in employees and one of those employees has an accident. Fell from a stair, step on nail, whatever. Your first thought probably would be he is the employee of the builder, that’s the builder’s problem. Number 2, I have insurance. Now those things normally true, but we are in Puerto Rico, in Puerto Rico we have a state mandated workmen compensation fund. Now I have a general understanding when dealing with the government or the government people. I am the underdog and that’s life. Not how I really feel or think but that’s what I look at. Why am I the underdog? That simple puts me in the position of being a little bit more prepared.

What is the solution? If you are a property owner you must make sure of two things, number 1, that you have the state workmen compensation package. They are right, there is a workmen compensation insurance run, owned, controlled, by the state. Number 2, that your builder, contractor, builder, a repair man, whosoever is going to come to your property to work or come work for you has workmen compensation self-worker. If you do, and this builder doesn’t, that employee can sue you directly. As a matter of fact, the government, workmen compensation fund is going to sue you to recover for what they must pay to that employee for medical care, etc., because it is a good package. The workmen comp program works very well for the employee. It is there to protect the employee. The employee, not the employer, not the owner or whatever. So, you must make sure that anybody that comes to your property to perform work under contract with you that they have workmen compensation and you want them to prove it. Its not enough: “yeah, yeah I have it.” Where is your workmen comp certificate? Show it.

Now there is another piece of information that you need to know but I a going to cover that in the next video in this subject. So again, my name is Santiago Lampón, I am a lawyer and a notary in Puerto Rico. I deal mostly with real estate issues, that’s why I’m referring to workmen comp in the real estate environment. If you have any questions you can send me an email or post them on this page and I want to wish that you have a great day.

Categories: Uncategorized

Establishing Residence in Puerto Rico – Problems and Solutions

April 12, 2017 Leave a comment

Good morning!!

So I continue to give you data that you can use in your life. Here is some data about residency in Puerto Rico that you can take into account.

I hope you are having a great week! Continue to do so!

Truly yours,

Santiago Lampón

Establishing Residence in Puerto Rico – Problems and Solutions – Transcript

Hello my name is Santiago Lampón. I am a lawyer and notary in Puerto Rico and welcome to this episode of Puerto Rico Legal Video Blog. Residents, not residents, of Puerto Rico? First of all the mere fact that you purchase a real estate property in Puerto Rico does not make you a resident of Puerto Rico.

Second, the fact that you spent long vacations in Puerto Rico, whatever you want to call long, a month, couple of months, a month and a half does not make you a necessarily a resident in Puerto Rico. Maybe you open a bank account, because you want to have accessibilities to some funds. That doesn’t make you, necessarily, a resident of Puerto Rico. Once you are talking about putting money here in a bank account in Puerto Rico here we go.

Residence means many things, but the important thing is what does it mean to you. Really? No. What does it mean to the government of Puerto Rico. Give you an example. You own a property in Puerto Rico. You rent for vacation purposes that property in Puerto Rico. You open a bank account in a local bank and you deposit those funds there. Are you a resident in Puerto Rico? No, but you are conducting business in Puerto Rico. So you must rightly have a tax issue. Tax liability has nothing to do with being a resident or not.

Lets reverse the subject here. Let’s say you want to become a resident in Puerto Rico. Why? There are some benefits for some people who are not residents of Puerto Rico at any given time and who decide to become residents of Puerto Rico. You know what? Then you have to find out which are the benefits and which are the specifics requirements for those benefits, because some laws that are going to give you tax benefits like the famous act 20 and act 22, carry with it a list of requirements, you have to this, you have to this. And then you qualify for the benefits of the law. One of them is become a resident and the law says which are the specific requirements for you to become a resident. It all depends on which is your purpose. Why do you want to spend time in Puerto Rico, besides running away from the cold weather.

Again my name is Santiago Lampón. I am a lawyer and notary in Puerto Rico. Thanks for watching this episode. If you have any questions you can send me an email, the address will appear open the screen or you can give me a phone call or just post the question on this page. Again I thank you for watching. I hope you enjoy it and I hope you have a great day.

Categories: Uncategorized

Revisions to Puerto Rico Sales Tax “IVU”

March 15, 2017 Leave a comment

Good morning!

I hope you are having a great week start! i hope this video can be of big help and give you more understanding on Puerto Rico sales tax.

Keep having an amazing week!

Truly yours,

Santiago Lampón

Revisions to Puerto Rico Sales Tax “IVU”

Hello, my name is Santiago Lampón; I am a lawyer and notary in Puerto Rico and welcome to Puerto Rico Legal Video Blog. I am going to cover in this episode an issue, which is of upmost importance for individuals who own real estate property in Puerto Rico, and they rent it out who have some business use for the property. Not only is it your second home but you have a business activity that you hold, you perform these set of things to this property.

Now what I want you to get out of this video is an area of concern, this is an alert and you should after you listen to what I am going to say speak to your accountant, you CPA or your tax lawyer to go over the concerns or the barriers that I am alerting you about, in this video.

Recently new taxes have been lead across the board for doing business in Puerto Rico. The one that I am going to discuss is the sales tax. In Spanish, it’s IVU, we call it the IVU, but I’m just going to use the translation sales name. Up to now you go into a store, you purchase a hundred-dollar item and you would be taxed 7% sales tax, so you will pay 107 dollars. And up to now business to business B to B have been exempted mostly from paying the sale tax. I say mostly because when I purchase my office materials from a store I didn’t pay a sales tax. Now there is a category of items that are now covered, which you say it is covered so I’m going to pay 7% more, that’s fine. the way the payment is made to the Puerto Rico treasury department is what concerns me and I want to communicate to you so that you can check.

As a matter of fact, today I discussed it with an accountant and he told me that he didn’t know that. Please look it up because this is new. It was approved 11 days ago, at the time of the release of this video and a lot of people are still going over it and I have been going over it. I still have a more to read. You have a house, you rent a house as a business and you have a pool maintenance guy, you have a painter, you have the guy who mows the lawn and there is a category called repairs. Now it is interesting because repair may be maintenance but maintenance is not necessarily repair so here comes the first concern that I have to specifically use the word repair.

Let’s say you are going to repair the leaking roof. (You rent the property, you need to repair.) That comes under repairs and that transaction happens to be taxable under the amendments to the quote that were performed 11 days ago, which is June 30 of 2015. Let’s says there is a 7% tax on that, if my reading is correct. So, you would say I pay the guy for the repairs; the guy is responsible for sending that money to the Puerto Rico treasury department. That sounds logical but that’s not the way it is. It is a self-imposed tax for business-to-business obligations. So, if somebody comes to your property to repair something, you are to number one self-impose the tax (yeah, you, yourself) and number two you are the one liable to make that payment to the Puerto Rico treasury.

At the end of the year there is a monthly payment that you must make. If you fail to file the form and make a payment you are subject to interest, penalties and you can even be fined. At the end of the year you have this profit and loss and expense, any kind of barrier that may fall under repair that you did not you, yourself, self-impose, you, yourself, the sales tax – the IVU on it – then you are liable to pay that money.

I have never seen that before, I discuss it with an accountant today and he was like: Really? I was like: really, that’s how it reads. I want to make sure that you who are watching this video and listening to me, if you have a real estate and you use it for business purposes, make sure that you consult this little issue with your CPA or tax lawyer. As a matter of fact, have them watch this video; my email is on the screen, they can write to me. If someone out there believes I am misreading this, I want to know. I was going to say so far so good but no, so far so bad. Make sure you understand this and you become fully knowledgeable on this as I obtain more information I will release it to therefore who subscribe to my blogs. Again, my name is Santiago Lampón, a lawyer and a notary in Puerto Rico. Send me any questions you may have in my email address or you can post them on this page. Have a good day.

Veronica Rodriguez
verorodriguez89@hotmail.com

Categories: Uncategorized

Property Taxes in Puerto Rico – The use of escrow accounts at closing (4 of 4)

March 10, 2017 Leave a comment

Good morning!

I hope you are having an amazing week.

Here is what I promised, which is part 4 on Property Taxes in Puerto Rico.
I hope you find this very useful. If you have any questions don’t hesitate to call or email me.

Truly yours,

Santiago Lampón

PROPERTY TAXES IN PUERTO RICO – THE USE OF ESCROW ACCOUNTS AT CLOSING – TRANSCRIPT

Hello my name is Santiago Lampón. I am a lawyer and a notary in Puerto Rico. Now this is part 4. This is the first time I have done a 4-part episode but it is because of the subject, regarding property taxes in Puerto Rico when you are going to do a closing. Do watch the other three parts. This one let me summarize here. Part one is an introduction, part 2 is registration, part 3 is the assessment of the property. Now in part 4 I am going to tell you about the use of escrow agreements at closing. When someone purchases a property that was not registered at the property tax authority, which is CRIM, or if it was registered but it had not been currently assessed meaning: what is the value of the structure? What is the value of the land? Because the tax is percentage based. You need to assess a value and then they compete the tax. Then to do the closing, what we are doing nowadays, notaries in Puerto Rico is that we create and escrow where by the seller places into this escrow, in this account with the reputable title insurance company in Puerto Rico. The possible exposure of property taxes owed because the property had either not been registered or currently assessed.

Now this exposure is computed using the bases of the tax. Using as a base for the tax, the purchase price of the transaction and we go back to 5 years. So, it is one year, the current year plus going back 5 years, a total of 6 years. Each township in Puerto Rico may use different percentage. I am not able to tell you this. It is done at the closing or prior to the closing with do a computation. The amount is placed into an escrow, it is total the parties, the parties accept it and they actually sign an escrow agreement, agreement whereby they state what is going to happen to that money and how is it going to be dispersed, who is going to have to do what.

It is very important that yes you can close even if the property had not been registered or the property has not been assessed but it is important that you demand or promote that an escrow agreement be used. There are certain exceptions, I am not going to cover them right now, but I just wanted to let you know that it is possible to close even though there is the potential property tax liability but that it must be done in the right way. If you have any questions, please send me an email. My name is Santiago Lampón. I am a lawyer and notary in Puerto Rico and I hope you have a great day.

Categories: Uncategorized

Property Taxes in Puerto Rico -Assessment of the Property (Part 3 of 4)

March 6, 2017 Leave a comment

Good morning!!

I hope you had a fantastic weekend! Here is the next video on Property Taxes un Puerto Rico. This is part 3 of a 4-part video. So enjoy and I hope it is useful to you.

Have an amazing week.

Truly yours,

Santiago Lampón

PROPERTY TAXES IN Puerto Rico – ASSESSMENT OF THE PROPERTY

Hello my name is Santiago Lampón, I am a lawyer and a notary in Puerto Rico and I welcome you to Puerto Rico Legal Video Blog. This is part 3 of a 4-part video or episode regarding property taxes in Puerto Rico. Part one, I discussed a brief introduction to the issue, part 2 I discussed registration and you should watch them, you should watch all parts. In part 3 I am going to go into the assessment of the property. That is the word we normally use because that is the best translation to the word used by the CRIM, but it’s nothing like… it’s an appraisal of the property.

Why I like using the word assessment instead of “appraisal”. The word appraisal automatically brings forth oh well we are going to hire an appraiser, we are going to look at market value. No, CRIM doesn’t work that way. CRIM assesses properties. They put a value to it. I don’t know the formula, I am not even going to try to find out what is the formula and why it works that way, but usually assess values are lower than market value which is beneficial to a tax payer. When you file to register a property under your name, if the property exists, most likely it is not going to be reassessed they will continue with the value on the books.

A few years back a law was approved that all assessed values with were very old for many years were multiplied by ten, that’s how old they were. Even by multiplying them by ten they didn’t come to press in time market value. Not even with the reduction of market prices for properties all over the world. So, anyway, when you have a property let’s say you are purchasing the property and it is already assessed and it has already been invoiced the amount of taxes, not a problem. But if you are registering a property for the first time meaning that the previous owner, the one who is selling to you or if you are the owner when you are going to sell it, it has not been assessed, if it didn’t exist at the record it is going to be assessed. They are going to register it under your name, they are going to create a brand-new record for it and then they are going to send someone to the property to check it out, to see how many rooms do you have, how many driveways do you have, how big is it, how many bathrooms you have.

As a matter of fact, the new forms that we the notaries have to file after closing with the treasury department (its another agency) is being reportedly shared with a CRIM. So, that the CRIM can identity, this has more rooms from what we have on our records, this is bigger construction because you pay taxes for the land and you pay taxes for the structure. So it is very important if you are purchasing property in Puerto Rico that you check, because it is the client’s duty, it is not the notary, the broker will help but it is actually a duty by the parties to get the accurate information regarding the CRIM.
Well, I hope you find this information helpful, you should go over and watch number 4. If you have not watched number 2 and number 1 you should do it as well so you can get the full package.

My name is Santiago Lampón, a lawyer and a notary in Puerto Rico. You can send me your questions by sending me an email or you can just go ahead and give me a phone call or post them on this page. Email is the best one. I hope you had a great day.

Categories: Uncategorized

Property Taxes in PR – Potential Liabilities

February 27, 2017 Leave a comment

Good Morning!!

I hope you had a sublime weekend!

I leave you with this video where you are going to find incredible tools for Real Estate buying or selling!

Expect 2 more parts soon!  Do great!

Truly yours,

Santiago Lampón

 

PROPERTY TAXES IN PR – POTENTIAL LIABILITIES

Hello and welcome to Puerto Rico Legal Video Blog. My name is Santiago Lampón. I am a lawyer and a notary in Puerto Rico. I handle real estate closes week in, week out, all the time, and I am going to cover in this video and I probably have to break it down in three parts. One of the main issues and I am not kidding, one of the main issues we are facing now a days with regards to closing in general and the liability of a seller and a liability of a buyer.

Property taxes. This is a very sour subject in Puerto Rico closings now a days. It has been for a while. In the sense that it has been getting a little bit like annoying little by little. Now it is a very critical item. Property taxes in Puerto Rico very unfortunately are not really organized the way it is handled. The process is very simple and very straight forward and I am going to have to say it works. What doesn’t work is how the system is handled. Property taxes in Puerto Rico have a separate agency which is The Centre for Collection of Municipal Taxes, that’s the translation in English. In Spanish is “Centro para la Recaudación de Impuestos Municipales, and we call it CRIM.

CRIM records work separately than property registry records. They register the same, which property, the characteristics of the property and who the owner is or are, but they have several records on is here. They haven’t been put together or whatever. The problem is for example when you go to do a mortgage if the CRIM records do not match the property registry records you cannot get a mortgage. An example, the meters at the property registry are 800 meters, but when you go to CRIM its 802 meters, 850 meters, 1000 meters. The mere fact that their different you cannot get a mortgage. You need to correct either one, whichever is the correct one. That means you must do certain steps including hiring a surveyor, most likely going to the land permit authority, maybe even to having to execute deed. Eventually you will have to execute a deed if you are going to go to the property registry and you are going to the CRIM registry description is fine then it is fine. Finding old documents of agencies that no longer exist is a huge hassle. So, what I am going to do is I am going to record and by the time you watch this I will have it recorded, a series of videos describing the different issues and indicating some basic solutions.

Unfortunately, I am not going to be able to give you the full scope of solutions though videos. I am just going to be able to present you a little bit of the problem or maybe the whole picture of the problem, I will try, and an understanding of what needs to be done to correct it. By the way I want to thank my client Scott Hardy who presented me with the problem and he then suggested that maybe I should be recording videos about this. He follows me on my page; he is from Candid Real Estate. Scott, thank you.

This was part one of a series of videos regarding the property tax authority assess registration, assessment and invoicing. Those are the three main areas. I am going to be in those three areas. So, expect to see three additional videos. If you have any questions after you watch this video or after you watch the other videos and this time I do encourage you to watch all of them. Please send me an email, the address will appear on your screen or give me a call or just post the questions on this page and I will try to get to it as soon as possible.

Hope you have a great day and again my name is Santiago Lampón, a lawyer and a notary in Puerto Rico. Bye.

Categories: Uncategorized

Liabilities of Foreign and Corporations in PR

February 23, 2017 Leave a comment

Good morning!

I hope you are enjoying and producing a lot this week. I leave you with a video that I think is useful to you, so that with this information you have understanding and thus can act on any situation where you might need to.

Have an amazing rest of the week!

Truly yours,

Santiago Lampón

 

LIABILITIES OF FOREIGN LLCs AND CORPORATION IN PUERTO RICO – TRANSCRIPT

Hello and welcome to Puerto Rico Legal Blog. My name is Santiago Lampón and I am a lawyer and notary in Puerto Rico, this episode I am going to cover the use of LLCs, Limited Liability Companies or corporations or any other kind of entity for purposes of a real estate transaction or to do businesses in Puerto Rico.

The main focus of this video is the protection, protection to the shareholders or to the members of a company. Now when someone looks at why a LLC or company or corporation was created typically it is because they want some kind of distance, some kind of separation between the owners, meaning the members or the stockholders or shareholders, and the business entity with regards to potential liability. In this regards in Puerto Rico when you have a company meaning an LLC or corporation created under Puerto Rico law, not a problem, it is created under Puerto Rico law it operates per se Puerto Rico corporate law and the shareholders and the members are protected, but when you have a company or LLC or corporation created elsewhere, under Puerto Rico law it is called foreign entity.

Now, foreign when I mention this to clients or any individuals that are having any discussion on his subject it is usually interpreted to mean outside of the United States. Foreign for the purposes of Puerto Rico corporate law, means any entity created anywhere other than Puerto Rico. It could be Florida, it could be New York, it could be Canada, it could be France, it doesn’t matter. If it was not created, registered or originated in Puerto Rico it is a foreign entity.

When you are purchasing a property in Puerto Rico or doing business in Puerto Rico, you may do so without registering the entity. You may and you can get away with it, but the truth of the matter is that under corporate law if that entity isn’t registered to do business in Puerto Rico and the official term is ” authorized to do business in Puerto Rico”, if it is not registered under Puerto Rico law the members, the owners of the company are personally liable for any claims against the entity. Yeah, that is the way it is. If a corporation or a limited liability company is not registered to do business, authorized to do businesses under Puerto Rico law, any claim against the company automatically the owners, meaning the members or stockholders are personally liable for such a claim.

It is very simple. Do you have a property in Puerto Rico? It is owned by an LLC or corporation? You rent it or do business in Puerto Rico? Register it. Don’t leave it as a foreign company. Register it and get your authorization to do business in Puerto Rico.

My name is Santiago Lampón. I am a lawyer and notary in Puerto Rico. I hope you have enjoyed this video. If you have any questions you can send me an email and you can post your questions on this page and I will get to it as soon as I can and gladly give you the response that I can. Have a great day.

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