P.R. Laws tit. 31, § 1297c
(a) The owners of lodging units may only terminate all leasing contracts as provided in the contents thereof. Absent any provisions to such purposes, the leasing contract may be terminated for “just cause”. For purposes of this section, the term “just cause” shall mean:
(1) A gross violation by the administrator of his/her fundamental obligations as provided in the leasing contracts;
(2) A gross violation by the administrator of his/her duty to act as the trustee of the owners of lodging units, and
(3) bankruptcy or insolvency, or the filing of a lawsuit to declare the administrator bankrupt or insolvent.
(b) The action to terminate all leasing contracts shall, by no means, be carried out individually.
(c) All costs and expenses incurred with respect to the administrator’s removal and replacement process shall be defrayed by the owners of lodging units and be deemed to be program administration expenses, except as otherwise provided in the master deed.
(d) When the administrator is removed from office pursuant to the provisions of this section, owners of lodging units (including the developer and his/her affiliates, if any of them are owners of lodging units) in the number and proportion set forth in the master deed, shall select a new administrator. Once the new administrator is selected, the corresponding leasing contract assignments shall be executed, which shall be recorded in the Property Registry pursuant to the procedures set forth in the Mortgage and Property Registry Act. In the event that a new administrator is not selected for any cause within the term and under the conditions set forth in the master deed, the regime shall be deemed to be dissolved and the provisions of § 1296(e) of this title shall apply.
(e) The provisions herein shall not be construed as to impair the right of an owner of a lodging unit to institute any actions that may be in order against an administrator for any violation by the latter of the terms of a leasing contract.
History —Aug. 12, 2008, No. 249, § 5.104; Dec. 16, 2009, No. 178, § 14; June 24, 2010, No. 67, § 14.