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

Before a closing in Puerto Rico – What do you need to look at?

April 10, 2017 Leave a comment

Good morning!
And I am back with more information to be useful to you!

I hope you had a great weekend and that this week is very productive! Here is some data about closings in Puerto Rico that you need to look at.

Enjoy!

ML,

Santiago Lampón

Before a closing in Puerto Rico – What do you need to look at? – 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. I am going to give you a list, its going to be a complete list, I am going to be giving you what you should be discussing with your lawyer or what you should be looking at, when you are doing a closing for a real estate property in Puerto Rico.

So pay attention and by the way some of these subjects I have already covered on this blog, so you may want to watch some of the other videos I have on this. When you are going to purchase a property in Puerto Rico, obviously, you are going to take a look at the title. That may seem obvious but you want to make sure you discuss it. Is the title OK? Are there any encumbrances? Are they any liens? Are there any restrictions? I’ll give you an example; if you are purchasing a property in a residential area: What are the restrictions that apply to that area? That’s all covered in the title. Yes you have some residential properties with some restrictions and no they are not necessarily what you call legal restrictions. It could be that when the area was created many years ago, somebody signed a contract limiting the use of the property or the use of the area.

One of the items that people on this blog watch a lot and ask questions about, a lot, are taxes. Meaning property taxes. Property taxes are a big issue in Puerto Rico. Are they assessed? Is the property correctly assessed? Not only assessed, not only appraised but has it been correctly appraised. When was the last appraisal done? Did the heirs (if the heirs are present) change the name of the person who appears as the owner of the property at the property tax authority which in Puerto Rico is: CRIM, that’s how you know it. CRIM.

Mortgages. It is common that properties have mortgages, half paid begin cancelled. Will they be cancelled when you are doing the closing? How are they going to be cancelled? That’s one of the items. Another thing you are going to look at maybe is insurance, title insurance, property insurance. This is not necessarily a legal subject but I will give you an example. Some people purchase the properly from someone. Not an entity, someone, an individual. Then they said I am going to rent it, I am going to lease it because I can make money out of it. Then when they go for the insurance they go for personal insurance because personal insurance is cheaper, its less money and they rent the property because this is a residential area.

You know what. If you some of your guests have it claimed maybe the insurance will not cover, because you should have taken another type of insurance, commercial insurance. Just discuss it with your lawyer or discuss it with your insurance agent. These are some of the items. They are actually more things that need to be covered. That would be another chapter and another episode. Again my name is Santiago Lampón; I am a layer and a notary in Puerto Rico. If you have any questions you can send them by email and my email address will appear on the screen or you can give me a phone call or you can post them on this page and I can get to them as fast as I can. I hope you have a great day.

Categories: puerto rico

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 Puerto Rico- Registration (Part 2 of 4)

March 1, 2017 Leave a comment

Good morning!

I hope you are having a great week. Here I present you Part 2 on the subject of Property Taxes in Puerto Rico. This is part 2 of a 4 part series.

There is some great data here for you to know, so you can share with as many people you want!  If you need any help give me a call or email me.

Truly yours,

Santiago Lampón

PROPERTY TAXES IN PUERTO RICO – REGISTRATION  (TRANSCRIPT)

Hello my name is Santiago Lampón and I am lawyer and a notary in Puerto Rico and welcome to Puerto Rico Legal Video Blog. This is part 2 of what I anticipate will be a 4-part series. There is a first part, which is an introductory part. If you didn’t watch it, that’s ok. You can continue watching from this point on but the other parts require that you watch all three of them.

Property taxes in Puerto Rico, the CRIM is the agency that registers or keeps the records and actually invoices these property taxes. I am going to interject something that the importance of the work done by CRIM cannot be understated. Property taxes in Puerto Rico are collected and distributed to municipalities to what you can probably think of as counties. Actually they are just town ships and that is what they work with. So, the money that they collect from property taxes meaning the town ships, that’s the money that they work with. So, when someone fails to pay property taxes or avoids paying property taxes it is actually deducting or reducing the amount of money, the budget for a given township for where the property is located at.

Registration, again the CRIM has a separate record to the property tax or the property registry in Puerto Rico. So, if your property is at the property registry, it doesn’t necessarily mean that it is at the property tax authority. The fact that it is at the property tax authority, the CRIM, it means that it is most likely at the property registry. It is like the inverse situation.

Now the first thing I want to clear for those of you out there, that their properties are not at the property registry, is that the fact that the property is not registered, doesn’t mean you don’t register for property tax. A lot of people say I don’t have title; my property is not at the property registry. Flunk! Property taxes are paid by those who claim or understand that the property that they reside on or they possess is their property. If you believe that you are the owner of that piece of land or that house you register and you pay taxes. That’s what owners do. Matter of fact it is what is expected. It is a legal way to do it.

When you register a property at the property tax authority, at the CRIM, you have to submit your deed and again if you do not have a registered title you can submit any document that evidences that you own that piece of land. Segregation permits for the land, all land in Puerto Rico used to be one big chunk and then it has been subdivided throughout the years, the permit that provides for that subdivision and if you built the house in the land where there was no structure there before then you have to register the structure because you pay taxes for the land and you pay taxes for the structure. If you have the structure and you expanded it, you added rooms and you added a garage or something those additions also pays taxes. So, the registration process is independent from the titles at the property registry. There are certain documents that are required. I am not listing all of them, I am just giving you an idea, but it is important that your register. I am going to give you one main reason for it. When you register, you are going to be paying back taxes and interest unless you can explain why you didn’t register it. So, you better register it now, particularly if you are purchasing a property, make sure that it is registered or that the proper potential indebtedness is placed into an escrow account so that when the property is assessed it is registered and then assessed and the taxes invoiced that you have that little egg nest from which you can collect. Because as I cover in my next video the liability might be yours.

My name is Santiago Lampón, I am a lawyer and a notary in Puerto Rico and I invite you to present me with any questions by writing me an email or giving me a phone call or just posting them on this page. Have a great day.

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.

Categories: Uncategorized

Couples Not Married Under Puerto Rico Law

February 20, 2017 Leave a comment

Good morning!

I hope you had a fantastic weekend with your loved ones!

I wanted to inform you about this subject of couples who are not married under Puerto Rico law so that you can take any actions to prevent inconvenient situations in the future and you are more than ready!

Have an fantastic week!

Truly yours,

Santiago Lampón

COUPLES NOT MARRIED UNDER PR LAW – TRANSCRIPT

Hello and welcome to Puerto Rico Legal Blog. My name is Santiago Lampón. I am a lawyer and a notary in Puerto Rico.  In this episode, I am going to cover what I can only describe as a delicate subject.  It is the subject of individuals who are not married under Puerto Rico law.

I am being very specific. Not married under Puerto Rico law. What do I mean by this?  It could be individuals who are not married at all or it could be individuals who got married elsewhere. The marriage is not recognized in Puerto Rico. So, under Puerto Rico law it would operate as if they were single. What I am focusing on more here are two aspects. Number one when you purchase real estate and number two, something a little bit more personal if one of these individuals is injured or requires medical attention.

With regards to real estate if an unmarried couple purchases real estate in Puerto Rico you have a situation that you are actually forming a partnership. It is a partnership that requires that this individual manage the property pursuant to Puerto Rico law, in accordance with the partnership laws established under Puerto Rico civil code, which means that it is there and whether you are aware or not it applies to your relationship. This also means that for purposes of inheritance you are also going to have to deal with a hereditary process individually as individuals not as spouses. So, it is very important that that this distinction is known for purposes of doing the correct thing, meaning what you want accomplished under Puerto Rico law.

Now on the more personal aspect, imagine that one of these individuals gets injured. In Puerto Rico, hospitals will not blink, if the spouse walks in or the children or the parents of the injured person walk in because the injured person is unable to make decisions but they will not blink at accepting instructions from the spouse. But in the absence of the spouse, under Puerto Rico law, who is going to make those decisions? That is where a living will or otherwise known as health power of attorney comes in handy. You need to have, if you are unmarried and care for each other, you need to have a little will or health power of attorney which follows very standard and precise processes in order to be created in Puerto Rico in order to be used.

So be aware. There are significant distinctions, if you are going to do real estate transactions, I am assuming notary, get explanations about it and be sure that you have this information for now and for the future.

I hope you have enjoyed this video. My name is Santiago Lampón, a lawyer and a notary in Puerto Rico. You can email me your questions and post them on this page or give me a phone call. Have a great day.

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