P.R. Laws tit. 17, § 510
(a) Every option or purchase-sale contract shall be drafted in English and in Spanish, and shall be signed in English or Spanish as the buyer prefers.
The option or purchase-sale contracts of lots shall include the applicable specifications listed in the subsections (b) and (c) of this section.
(b) The option contract shall contain, without prejudice of others, the following particulars:
(1) Location or possible location of the lot or of the dwelling unit;
(2) measurements of the lot;
(3) type of dwelling, clearly identifiable, and its facilities;
(4) right of the optionee or buyer to refuse the purchase of electric appliances as standard equipment of the dwelling, in which case the cost of the appliances to the seller shall be deducted from the sale price of the dwelling;
(5) right of the buyer to examine the plans and specifications of the dwelling and to visit and inspect the object of the contract, in accordance with the seller;
(6) duty of the seller to keep in escrow the sums paid in advance by the buyer, in the manner hereinafter provided;
(7) tentative selling price and approximate down payment;
(8) right of the buyer to demand the specific fulfillment of his option contract, or to annual same for unfulfillment on the part of the seller of his obligations thereunder, in which case he shall be entitled to a complete refund of the sum paid in advance;
(9) the maximum amount that the vendor may deduct and withhold from the advance or price of the option for damages when, through no fault on the part of the vendor, the buyer decides not to exercise his option contract, and
(10) limit of time to begin the construction of the dwelling.
(c) The contract of promise of purchase-sale or of purchase-sale shall contain with reasonable precision the particulars enumerated in clauses (1)—(6) of subsection (b) of this section, and further, shall provide:
(1) The exact price which shall not be increased unless by agreement of the parties;
(2) breakdown of the possible closing charges;
(3) time limit for the conveyance of the dwelling to the buyer;
(4) that the buyer shall be entitled to annual the contract on establishing that the unit, the object of the contract, whether it be in the process of construction or already finished, departs in a substantial manner from that specified in the contract, in which case the payments made under the purchase-sale contract shall be returned to the buyer completely;
(5) the maximum amount that the vendor may deduct from the payments made by the buyer under the purchase-sale contract, should said contract be annulled because the buyer has not fulfilled his obligations thereunder;
(6) that the [developer] or constructor of the unit, the object of the contract, shall be responsible for damages to the buyer due to construction defects and false representation on the dwelling unit;
(7) that the constructor shall deliver to the buyer within the thirty (30) days following the execution of the corresponding deed a copy thereof and also a copy of the plans and specifications and a copy of the Regulation for the Construction Industry promulgated by the Consumers Service Administration;
(8) that the seller shall deliver to the buyer within thirty (30) days following the execution of the purchase-sale deed, a copy of the title insurance policy which insures the title of first mortgage, if any, and a copy of the cancellation of the liens on the property which the constructor may have constituted prior to the purchase-sale;
(9) that the seller will offer to the buyer an insurance policy which will protect his ownership title upon payment of an additional premium and that, if the buyer does not accept it, he shall have to state his rejection in writing. Provided, That every title policy issued pursuant to this section shall be so issued by an insurer authorized to do business in Puerto Rico.
(d) The Secretary of the Department of Consumer Affairs shall have power to determine the reasonable maximum amounts or percentages that may be withheld under the provisions of subsections (b)(9) and (c)(5) of this section.
(e) Every [developer] shall deposit in Puerto Rico, in a banking or savings institution authorized to operate in Puerto Rico, the money received by reason of contracts of purchase option, of promise of purchase-sale and of purchase-sale or of those designated under any other name, but with purposes or ends similar to those mentioned, and the money so deposited and its interest, if any, shall be kept apart from the operation funds of the [developer] so that they may be immediately delivered to the corresponding person, or credited to the price of the sale on the closing of the transaction. To such end, the Secretary of the Department of Consumer Affairs shall prescribe by regulation the conditions which shall govern the escrow and the manner of making withdrawals thereof, to enforce the purposes of §§ 501—519 of this title. Every banking or savings institution which becomes a depositary of said funds shall comply with the aforesaid regulation and shall not intervene with, dispose of, or freeze the sums so deposited by reason of the commercial or contractual relations between the institution and the [developer] or his assignees.
(f) Reasons which motivate the annulment of the option contract on the part of the optionee:
(1) At any time during which the optionee perceives that the unit under construction or which is about to be delivered to him differs in a substantial manner from the proposed unit on the basis of which he bought;
(2) when the [developer] or constructor, after having been required, refuses or has been unable to show the plans and specifications of the dwelling unit;
(3) if more than a year has lapsed from the date in which the option contract was executed, and the execution of the purchase-sale contract;
(4) if the [developer] or constructor should notify him that the original price of the dwelling has been increased;
(5) if on inspecting the dwelling which has already been constructed, he notices that the same has construction defects as defined in the regulation promulgated to such effects by the Secretary, and the constructor refuses to correct same on being required to do so;
(6) if notified by the [developer], or constructor, or by any other authorized person that the firm or institution through which he transacted his petition for the mortgage loan has refused the granting thereof for the purchase of the dwelling.
(g) Reasons causing the annulment of the option contract on the part of the [developer] or constructor:
(1) When the optionee has not deposited the amount of money required by the [developer] or constructor within the term specified in the contract;
(2) if the optionee has notified in writing the [developer] or constructor that he no longer is interested in continuing with the transactions for the purchase of the dwelling;
(3) if the optionee has taken more than thirty (30) days, from the date in which he has been required in writing to sign, to appear and sign the purchase-sale contract;
(4) [Repealed. Act June 9, 1976, No. 160, p. 502, § 6, eff. 60 days after June 9, 1976.]
(h) Reasons for the annulment of the purchase-sale contracts on the part of the buyer:
(1) At any time during which the buyer perceives that the unit under construction or which is about to be delivered to him differs in a substantial manner from the proposed unit on the basis of which he bought;
(2) if on inspecting the dwelling which has already been constructed, he notices that same has construction defects as defined in the regulation promulgated to such effects by the Secretary, and the constructor refuses to correct same on being required to do so;
(3) if notified by the [developer] or constructor or by any other authorized person, that the firm or institution through which he transacted his petition for the mortgage loan has refused the granting thereof for the purchase of the dwelling;
(4) if more than 18 months have lapsed from the date in which the purchase-sale contract was executed, without the final deed having been signed or the key of the dwelling having been delivered to him.
(i) Reasons which motivate the annulment of the purchase-sale contract on the part of the constructor or [developer]:
(1) When the buyer has not paid the down payment required by the [developer] or constructor within the term provided in the contract.
(2) When the buyer, without any justified cause, refuses to sign the final deed, after having been required in writing by the [developer] or constructor.
(3) When the buyer has notified in writing the [developer] or constructor that he is no longer interested in continuing with the transactions for the purchase of the dwelling.
(j) In the cases of annulment of contracts of option, of promise of purchase-sale and of purchase-sale on the part of the [developer] or constructor, the contracting parties shall abide by the provisions in the contract as to the maximum amount which the [developer] or constructor may withhold by reason of damages, provided said amount does not exceed the maximum amount which the Secretary of the Department of Consumer Affairs may fix by regulation. Provided, That the fixing of a maximum amount in the contract shall not excuse the [developer] or constructor from proving at an administrative hearing the damages actually sustained as a result of the annulment or breach of the contract. The Secretary shall adjudge the amount of the damages, and may grant a compensation therefor which shall not exceed the maximum amount stipulated in the contract. Notwithstanding the foregoing, and after the effectiveness of this act, the Secretary may fix by regulation the amount to be withheld without need of proving damages.
History —June 13, 1967, No. 130, p. 406, § 10; June 27, 1968, No. 141, p. 400, § 2; June 24, 1971, No. 100, p. 334, § 1; June 9, 1976, No. 160, p. 502, § 6; July 20, 1979, No. 137, p. 323, § 2.