P.R. Laws tit. 13, § 10721
For purposes of this chapter, the following terms and phrases shall have the meaning stated below:
(a) Newly-built property.— Means:
(1) Any newly-built residential real property located in Puerto Rico, suitable for family living that has not been occupied and is acquired from a developer. In order for the real property to be deemed a newly-built property, the seller of the real property shall certify in writing to the purchaser, by means of a sworn statement, on or before the date of acquisition, that it is a newly-built real property and has not been previously occupied.
(2) Any reinforced concrete predesigned or prefabricated single-story, two-story, or elevated home acquired from a bona fide predesigned or prefabricated house company whose plans have been approved by the Regulations and Permit Administration (ARPE, Spanish acronym) on or before December 30, 2009, except by means of a dispensation that may be issued by the Secretary of the Department of Consumer Affairs. In order for the predesigned or prefabricated homes to be deemed newly-built properties, the buyer shall submit a copy of the sales contract executed between the buyer and the predesigned or prefabricated homes company, and the construction thereof shall begin after obtaining a construction permit duly issued by the Permit Management Office (OGPE, Spanish acronym) between November 1, 2011 and June 30, 2013, and shall conclude on or before March 31, 2013, upon filing the use permit application with OGPE.
(b) Qualified property.— Qualified property means any existing residential real property located in Puerto Rico suitable for family living, other than a newly-built property, or any existing non-residential real property located in Puerto Rico sold after September 1, 2010, but not later than June 30, 2013, whose sales price does not exceed three million dollars ($3,000,000).
(c) Code.— Means §§ 30011 et seq. of this title, known as the “Internal Revenue Code for a New Puerto Rico”.
(d) Principal residence.— Means a housing unit that has been continuously occupied by the seller and/or his/her family during the two (2) years immediately preceding the sale.
(e) Developer.— Means any natural or juridical person, duly licensed as developer by the Department of Consumer Affairs, engaged in the construction business as entrepreneur or chief responsible for the promotion, design, sale, construction of housing developments and projects, whether single or multistory; provided, that solely for purposes of this chapter, the term “developer” shall also include those financial institutions or any natural or juridical persons that, by virtue of a judicial, extrajudicial proceeding or by agreement of dation in payment or similar transaction become the successor of an interest of a developer.
(f) Sale.— Means a contract between two parties-seller and purchaser- executed through a public deed before a notary public authorized to practice his/her profession in Puerto Rico, whereby the title and ownership of a real property is transferred for a certain price.
(g) Eligible housing.— Means a newly-built property, as defined in subsection (a)(1) of this section.
(h) Qualified institutional buyer.— Means any individual or juridical person that is a Puerto Rico resident, or any individual or juridical person that is a nonresident of Puerto Rico engaged in the construction business and that invests as least one million dollars ($1,000,000), in a single act or in separate acts, exclusively in eligible housing in Puerto Rico, or acquires at least five (5) eligible housing units.
History —Nov. 1, 2011, No. 216, § 2; Dec. 30, 2011, No. 288, § 4; Dec. 21, 2012, No. 303, § 1; Dec. 30, 2013, No. 68, § 1; Nov. 17, 2015, No. 187, § 97.