P.R. Laws tit. 23, § 6951
(a) AFICA.— Shall mean the Industrial, Tourist, Educational, Medical, and Environmental Control Facilities Financing Authority.
(b) ARPE.— Shall mean the regulations and Permits Administration of Puerto Rico or any entity that, by virtue of law, assumes the responsibilities of or supersedes the same.
(c) Golf course.— Shall have the meaning given to such term in Regulation No. 5053, as amended, promulgated by virtue of §§ 6001 et seq. of this title or in any regulation that supersedes the same.
(d) Tourism Company.— Shall mean the Puerto Rico Tourism Company, a public corporation and instrumentality of the Government of Puerto Rico.
(e) Buyer.— Shall mean any person who acquires a vacation home unit from its vacation home developer and any person who, in turn, acquires it from the original buyer.
(f) Grant.— Shall have the meaning given to such term in §§ 6001 et seq. of this title, or in any law that supersedes the same.
(g) Condohotel.— Shall have the meaning given to such term in Regulation No. 5053, as amended, promulgated by virtue of §§ 6001 et seq. of this title or in any regulation that supersedes the same.
(h) Purchase agreement.— Shall mean a contract executed by a vacation home developer for the acquisition of a vacation home unit when the offer and sale of the unit is carried out in Puerto Rico.
(i) Approved purchase agreement.— Shall mean a purchase agreement model approved by the DACO, which is deemed as approved pursuant to the provisions of § 6591j of this title and in accordance with what is established through regulations.
(j) Exempt purchase agreement.— Shall mean a contract executed by a vacation home developer for the acquisition of a vacation home unit when:
(1) the offer and sale of the unit and the buyer’s execution of the appropriate purchase agreement are carried out outside of Puerto Rico;
(2) the jurisdiction in which the sale of the vacation home unit is carried out regulates through special laws the sale in that jurisdiction of residential products located outside said jurisdiction; and
(3) the vacation home developer has complied with the laws that apply to such residential products in that jurisdiction.
(k) Exempt special escrow account agreement.— Shall mean an escrow account agreement executed by the vacation home developer regarding an Exempt purchase agreement.
(l) Special escrow account agreement.— Shall mean an escrow account agreement executed by the vacation home developer regarding a reservation contract or a purchase agreement.
(m) Reservation contract.— Shall mean a contract executed by a vacation home developer, which establishes the intention of a person of acquiring a vacation home unit when such vacation home unit reservation is made in Puerto Rico.
(n) Approved reservation contract.— Shall mean a reservation contract model approved by the DACO, or deemed as approved pursuant to the provisions of § 6951j of this title and in accordance with what is established through regulations.
(o) Exempt reservation contract.— Shall mean a contract executed by a vacation home developer, which establishes the intention of a person of acquiring a vacation home unit when:
(1) The offer of the unit and the buyer’s execution of the appropriate reservation contract are carried out outside of Puerto Rico;
(2) the jurisdiction in which the reservation or offer of the vacation home unit is carried out regulates, through special laws, the reservation or offer in that jurisdiction of residential products located outside said jurisdiction; and
(3) the vacation home developer has complied with the laws and regulations that apply to such residential products in that jurisdiction.
(p) Amended contract.— Shall mean a reservation contract or purchase agreement submitted by a vacation home developer to be reevaluated for approval after an initial negative evaluation.
(q) Exempt contracts.— Shall mean, jointly, an Exempt purchase agreement, an exempt reservation contract, or an exempt special escrow account agreement.
(r) Special escrow account.— Shall mean an escrow account established in accordance with a special escrow account agreement and subject to the provisions of the reservation contract or the purchase agreement.
(s) DACO.— Shall mean the Puerto Rico Department of Consumer Affairs.
(t) Final and binding decision.— Shall mean a final and binding administrative decision made by the DACO regarding controversies adjudicated under this chapter.
(u) Construction defects.— Shall mean any anomaly, defect, lack of accessories, fault, premature deterioration, malfunctioning, inaccuracy in measurements, or any other condition, other than the normal tolerances allowable in a structure or house, or in the area on which it was built, or any other flaw or condition that exceeds the measure of imperfections to be expected in construction, without it being attributable to force majeure and/or natural phenomena, or due to abuse, alterations, lack of maintenance, or normal wear, as more broadly established through regulations.
(v) Director or Director of the Tourism Company.— Shall mean the Executive Director of the Tourism Company.
(w) Initial negative evaluation.— Shall mean a negative evaluation issued by the DACO regarding the approval of a purchase agreement or reservation contract.
(x) Hostelry.— Shall have the meaning given to such term in Regulation No. 5080, as amended, promulgated under §§ 671 et seq. of this title, known as the “Puerto Rico Tourism Company Act.”
(y) Act No. 5.— Shall mean §§ 341 et seq. of Title 3, known as the “Department of Consumer Affairs Organic Act,” or any law that supersedes it.
(z) Act No. 10.— Shall mean §§ 3025 et seq. of Title 20, known as the “Act to Regulate the Real Estate Business and the Profession of Real Estate Broker, Salesperson, or Companies in Puerto Rico,” or any law that supersedes it.
(aa) Act No. 78.— Shall mean §§ 6001 et seq. of this title, known as the “Puerto Rico Tourism Development Act of 1993,” or any law that supersedes it.
(bb) Act No. 130.— Shall mean §§ 501 et seq. of Title 17, known as the “Act of the Office of the Construction Officer Attached to the Department of Consumer Affairs,” or any law that supersedes it.
(cc) Act No. 170.— Shall mean §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act,” or any law that supersedes it.
(dd) Tourist marina.— Shall have the meaning given to such term in §§ 6001 et seq. of this title or any law that supersedes it.
(ee) Theme park.— Shall have the meaning given to this term in Section 2(h) 5 of Regulation No. 5053, as amended, promulgated under §§ 6001 et seq. of this title or any regulation that supersedes it.
(ff) Person.— Shall mean any natural or juridical person.
(gg) Traditional tourism product.— Shall mean any hostelry, time-share project, theme park, tourist marina, golf course, or any other eligible business that qualifies for a grant.
(hh) Project or vacation home project.— Shall mean:
(1) A residential project physically located in Puerto Rico that is part of an integrated development that includes at least one traditional tourism product that holds a grant and:
(A) whose assets or income shall serve as collateral or source of debt repayment; or
(B) which shall increase the cash flow of a traditional tourism product, or
(C) whose buyers shall be required to share operational costs (e.g., the maintenance of common areas) or to acquire goods and services (e.g., club memberships to use the facilities of such integrated development); or
(D) which are required to make their units available to generate an additional inventory for a traditional tourism product, insofar as such traditional tourism product holds a grant; or
(2) a mandatory or voluntary condo hotel or mandatory or voluntary rental management program that holds a grant; or
(3) residences, whether branded or not, insofar as such residences or units are offered for sale outside of Puerto Rico, as evidenced by:
(A) A final and valid registration in at least five (5) jurisdictions outside of Puerto Rico, which require drafting a plan with the details of the offer for residents of the jurisdiction in question; and
(B) the approved and effective filing of a property report in the Office of Interstate Land Sales Registration of the United States Department of Housing and Urban Development, under the Interstate Land Sales Full Disclosure Act, 15 U.S.C. § 1701 et seq., and its regulations, as these are amended.
(ii) Negative reevaluation.— Shall mean a negative evaluation issued by the DACO regarding the approval of an Amended Contract.
(jj) Secretary.— Shall mean the Secretary of the Department of Consumer Affairs.
(kk) Unit or vacation home unit.— Shall mean a residential unit that belongs to a vacation home project.
(ll) Vacation home developer.— Shall mean any person who obtains a vacation home developer license to develop vacation home projects pursuant to the terms and conditions set forth herein.
History —Dec. 16, 2009, No. 181, § 3.