Puerto Rico

Quick facts

Sale type

Tax deed

Redemption period

1 year

Sale frequency

As needed

Minimum bid

Taxes + interest + costs

Deed type

Public auction deed

Bidder deposit

10% of bid

Governing agency

CRIM

Statutory framework

Sale mechanics

Auctions are public events managed by the CRIM. Bidder registration requires compliance with CRIM regulations. The minimum bid is the value of the delinquent taxpayer's equity or the tax debt, whichever is less, but never less than the total taxes, surcharges, and interest owed. A 10% cash deposit is required at the time of the bid, with the balance due within 10 days.

Post-sale obligations

The purchaser acquires the property 'as is' with no warranties from the CRIM. The former owner has one year to redeem the property. The purchaser has no right to legal action for reparations against the CRIM if the sale is set aside or the property is redeemed.

Quiet title cost estimator

Estimate attorney and court costs for clearing title after a Puerto Rico tax deed purchase.

Notable counties

Key Puerto Rico counties for tax deed investors.

Recent statutory changes

1. Law 107-2020 (Municipal Code of Puerto Rico) effective August 14, 2020, consolidated and reorganized municipal tax collection procedures.

How to bid at a Puerto Rico tax deed auction

Step-by-step process for participating in Puerto Rico tax deed sales.

1. 1

   Monitor CRIM notices

   Regularly check local newspapers and the CRIM website for auction announcements.

2. 2

   Conduct due diligence

   Research the property's tax status, liens, and physical condition using the CRIM portal and Property Registry.

3. 3

   Register for auction

   Follow the specific instructions provided in the auction notice to register as a bidder.

4. 4

   Submit deposit

   Prepare the required 10% cash deposit to be submitted at the auction.

5. 5

   Participate in bidding

   Attend the auction and submit bids, ensuring they meet the minimum required amount.

6. 6

   Pay balance

   If successful, pay the remaining balance within 10 days of the auction date.

Applicable statutes

Primary statute sections governing tax deed sales in Puerto Rico.

• 21 L.P.R.A. § 5105

  Governs the attachment and sale of real property for delinquent taxes.

• 13 L.P.R.A. § 510

  Details auction procedures, notice requirements, and the payment of surplus.

• 13 L.P.R.A. § 33261

  Establishes the tax lien in favor of the Government of Puerto Rico.

Notable case law

Landmark court decisions affecting Puerto Rico tax deed investors.

Frequently asked questions

Common questions from Puerto Rico tax deed investors.

How does Puerto Rico's redemption period work?

The original owner has one year from the auction date to redeem the property by paying the total tax debt, interest, and costs (21 L.P.R.A. § 5105).

Do I need a quiet title action?

Yes, it is highly recommended to clear title through the Property Registry, as tax deeds in Puerto Rico may not automatically provide 'clean' title.

What title risks should a buyer know?

Properties are sold 'as is,' and the CRIM provides no warranties regarding the condition or legal status of the title (21 L.P.R.A. § 5105).

What happens if the owner challenges the sale?

Challenges are handled through the Court of First Instance; the purchaser has no right to sue the CRIM for damages (21 L.P.R.A. § 5105).

How are auctions conducted?

Auctions are public events managed by the CRIM, typically advertised in local newspapers.

Can I inspect properties?

Generally, no; properties are sold 'as is' without the opportunity for formal inspection.