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American College of Mortgage Attorneys — Partner with the Best®

Formed in 1974, the American College of Mortgage Attorneys (ACMA) is comprised of over 500 lawyers in North America who are experts in mortgage law.

United States

Puerto Rico

Real estate mortgages must be in the form of “public deeds,” which are subject to formalities required by the Puerto Rico Notarial Law and must be executed before a Puerto Rico notary public. Puerto Rico notaries public are civil law notaries, and the function they exercise with respect to “public deeds” goes significantly beyond the functions of a typical common-law notary. All Puerto Rico notaries must also be licensed attorneys. The deed of mortgage is initialed on all pages and signed by the mortgagor and the notary (execution by the mortgagee is optional), and the notary retains the original deed as part of his or her protocol of public instruments for the year in which it is executed. The notary then issues a certified copy of the deed, which is filed for recording in the Registry of Property. The mortgagor and any holder of the mortgage note may request additional certified copies, but because certification requires payment of a significant sum in documentary stamps, in practice the parties usually receive simple photocopies or pdf scans.Mortgages are presented to the Registry electronically (see the “Recording Requirements” paragraph below). Once the mortgage is recorded, the notary and any other person who presented the document (for example, the lender’s counsel or the title insurer) will receive an email notice of recording from the Registry that will include the recording data. The notary will usually then remit the certified copy to the mortgagee with the recording data.The FannieMae/FreddieMac Puerto Rico single-family and multi-family forms of mortgage and note are the ones typically used for conventional residential mortgages.Commercial loan mortgage security usually involves 3 documents: (1)&nbsp;a deed of mortgage, which secures a (2)&nbsp;collateral mortgage note payable on demand to the order of the lender or to the bearer, and which is delivered to the lender under a (3)&nbsp;pledge and security agreement by which the lender is granted a possessory security interest in the note. Neither the deed of mortgage nor the demand note will contain any reference to the underlying loan(s). The demand note’s principal amount might or might not coincide with the amount of the underlying loan(s), and its stated interest rate will usually be a fixed rate that is higher than the actual loan rate (to cover fluctuations or changes in the loan rate). The main function of the deed and the note is to establish the maximum amounts of principal, interest, and additional credits the secured creditor may recover from the foreclosure sale of the mortgaged property. The pledge and security agreement connects the collateral to the secured obligation(s), which may include a particular credit or may extend to all present or future indebtedness, whether of the mortgagor or of another party, to the note holder. The collateral note is a negotiable instrument, and negotiations or assignments of the note are not recordable in the registry.The deed of mortgage must state the minimum bid price that the parties assign to the mortgaged property for the 1st judicial sale in case of foreclosure (30 LPRA §6107).A commercial mortgage securing a demand mortgage note has a useful life of 20 years, during which it can collateralize various obligations to a series of creditors, who may acquire an interest in the collateral through negotiation of the note and the execution of new pledge and security agreements. The 20-year term can be extended under certain conditions.

SECURITY INSTRUMENT USED

The Real Estate Registry Law, Act No. 210 of December 8, 2015, as amended, governs the recording of mortgages and foreclosures.<o:p></o:p>The Property Registry has approximately 30 sections, each covering a particular geographic area. Mortgages are presented to the registry in either of 2 ways: (i) through an on-line computer application through which a pdf scan of the certified copy of the mortgage, deed is sent and registry fees, are paid, or (ii) by personal delivery of the certified copy to the appropriate Registry section where the certified copy of the deed is scanned, entered to the filing system, and returned to the notary. As stated above, the deed is subject to a number of documentary and execution formalities that require the intervention of a Puerto Rico notary. Upon presentation of the mortgage, the registry issues a dated receipt with a specific entry number, which will preserve rank since instruments affecting a particular property must be recorded in strict order of presentation. Actual recordation requires the registrar’s review and approval of the instruments and may happen months or even years after the date of presentation, but the legal effects of recordation will be retroactive to the date of presentation.<o:p></o:p>Mortgages of $500,000 or more in principal amount require that the lender file certain financial information regarding the borrower with the P.R. Treasury Department (30 LPRA §6111) through the Treasury’s on-line computer application. A Treasury certificate confirming that the filing was made should be attached to the mortgage deed presented to the Registry, but in practice this is seldom required by registrars. Purchase money loans to non-Puerto Rico residents, and reverse mortgages, are exempt from this requirement.<o:p></o:p>

RECORDING REQUIREMENTS

Homestead rights may be waived in certain residential mortgages (FHA, VA, FHMA, conventional mortgages, and certain others covered by specific laws, such as SBA mortgages).<o:p></o:p>

STATUTES TO BE WAIVED

<span style="font-family:&quot;Garamond&quot;,serif;font-size:12.0pt;mso-ansi-language:EN-US;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-language:AR-SA;mso-bidi-theme-font:minor-bidi;mso-fareast-font-family:&quot;Times New Roman&quot;;mso-fareast-language:EN-US;mso-fareast-theme-font:minor-latin;">None

UNUSUAL TREATMENT OF STANDARD PROVISIONS

Future advances are secured up to the maximum stated principal amount of the mortgage note.<o:p></o:p>

SECURING FUTURE ADVANCES

The P.R. Mortgage Regulations permit the mortgage to include additional credits such as one to secure advances made by the mortgagee to preserve and protect the collateral, including payment of taxes and insurance, but the amount of such credit(s) must be quantified in the deed of mortgage. Under normal practice, the credit for advances to protect the collateral is set at 10% of the principal amount of the mortgage.<o:p></o:p>

SECURING ADDITIONAL ADVANCES TO PROTECT THE COLLATERAL

Deeds of trust are not recognized in Puerto Rico.<o:p></o:p>

TRUSTEE UNDER DEED OF TRUST

Puerto Rico law provides for a judicial foreclosure proceeding with a mixed character, with elements of both in rem and in personam actions including the collection claim against the borrower. As an ordinary legal action, it includes all stages of normal civil actions (pleadings, discovery, trial, etc.) under the Puerto Rico Rules of Civil Procedure, which are based on the Federal Rules of Civil Procedure. The lender usually will file the action against the borrower (and the owner of the mortgaged property, if different from the borrower), and obtain a judgment for the amount of the secured indebtedness that will recognize the enforceability of the mortgage. Absent an appeal, the judgment will become executory within 30 days of entry.&nbsp;<o:p></o:p>If the mortgaged property is the mortgagor’s principal residence, the Principal Residence Protection and Mandatory Mediation in Foreclosure Proceedings Act, 32 L.P.R.A. §2881 et seq., requires the presiding judge in the case to order the parties, upon service of process to the mortgagor, to hold a mandatory mediation conference, in which the mortgagor shall be informed of all alternatives to prevent—or minimize the effects of—the foreclosure and judicial sale of the residence. This is a jurisdictional requirement; thus, judgment may not be issued until the mandatory mediation conference is held.&nbsp;<o:p></o:p>Upon judgment becoming final, the mortgagee may request the court to order the foreclosure of the mortgage through the public sale at auction of the property. The sale will be conducted by the court’s marshal at the marshal’s office, except if&nbsp;the action is in the federal district court, where public sales are conducted by a special master.<o:p></o:p>Notice of sale must be (i)&nbsp;given to all interested parties, including junior lienholders, (ii)&nbsp;posted in 3 public places of the municipality in which the sale will be held, and (iii)&nbsp;published in a newspaper of general circulation at least once a week for 2 weeks prior to the sale, except if the action is in federal court, the notice must be published once a week for 4 weeks. After the auction is held, the marshal and the successful bidder will execute a deed of public sale transferring title to the purchaser. All junior liens (subject to certain notice requirements) will be cancelled as a result of the judicial sale, upon petition to the court.&nbsp;<o:p></o:p>Typical Length of Procedure: A contested collection procedure may take 1 or more years to complete. Uncontested procedures may take 4 to 6 months to complete.<o:p></o:p>Foreclosure Bid Requirements: The deed of mortgage must state the minimum bid price that the parties assign to the mortgaged property for the 1st judicial sale in case of foreclosure (30 LPRA §6107). If the first auction does not produce a bid for the minimum amount stated in the deed, 2 additional auctions may be held. The minimum bid prices at the second and third auctions will be 2/3 and ½, respectively, of the bid price for the 1st one. The mortgagee may bid up to its judgment amount at any auction. Junior lienholders may bid the amount of their credits, but first they must fully pay, in cash or by certified check, the judgment owed to the foreclosing mortgagee (up to the stated amount of the mortgage) and to others with liens having priority. If there is no successful bidder at the third auction, title to the property will be transferred to the mortgagee free and clear of junior liens (subject to notice requirements), and ½ of the minimum bid amount stated in the deed will applied to the judgment.<o:p></o:p>

BRIEF DESCRIPTION OF PROCEDURE

No redemption period.<o:p></o:p>

REDEMPTION PERIOD AND PRICE

Provisions waiving redemption rights often appear in mortgage deeds, but there is no redemption period after foreclosure.<o:p></o:p>

WAIVER OF REDEMPTION; REDUCTION OF REDEMPTION PERIOD

If the foreclosure sale proceeds are insufficient to pay the judgment, the mortgagee may collect any deficiency as an unsecured credit from other available assets of the debtors. It may also obtain a court order to attach such other assets without posting a bond. As the borrower and any co-debtors (including solidary guarantors) will have been parties to the ordinary proceedings, the judgment will include a determination of their liability, which will be enforceable against them before or after the foreclosure sale. No fair value hearing is necessary.<o:p></o:p>

DEFICIENCIES

Foreclosure does not affect a recorded lease that is senior to the foreclosed mortgage. Foreclosure will extinguish any inferior liens, including leases recorded in the registry in junior rank to the foreclosed mortgage, provided the inferior lienholders were given due notice of the foreclosure sale. It also will extinguish any unrecorded lease, even if the lease predates the mortgage. It should be noted that recording a lease in Puerto Rico requires the formality of a public deed and involves significant stamp taxes and recording fees, for which reason the majority of leases in Puerto Rico are drafted as private contracts not recorded in the Registry.&nbsp;<o:p></o:p>

EFFECT OF FORECLOSURE UPON LEASES

: In Scotiabank de Puerto Rico v. A.M. Rosario Ramos, et al., 2020 TSPR 123, the Puerto Rico Supreme Court interpreted the Principal Residence Protection and Mandatory Mediation in Foreclosure Proceedings Act (cited in the “Brief Description of Procedure” section above) as categorically requiring the creditor to offer to a mortgagor whose principal residence is being foreclosed all alternatives available in the market to avoid or minimize the effects of foreclosure, and to negotiate with the borrower in “good faith”, as the term is defined in the court’s opinion. Creditors that fail to negotiate in good faith may face court-imposed sanctions.<o:p></o:p>

CHANGES DUE TO RECENT FORECLOSURE LITIGATION

There are no limitations on the rates and amounts of interest, points, origination fees, prepayment penalties, and other fees and charges that may be contracted for, assessed, or collected.<o:p></o:p>

USURY CEILING

See preceding paragraph.<o:p></o:p>

USURY EXEMPTIONS

If the collateral is crops or timber to be cut or the financing statement is filed as a fixture filing and the collateral is goods that are or will become fixtures, filing is in the section of the Property Registry where the property is recorded. All other filings except titled motor vehicles (which are filed at the P.R. Department of Transportation Motor Vehicle Bureau) are done through an on-line filing program maintained by the Department of State of Puerto Rico. UCC Article 9 is in effect in Puerto Rico, with some minor deviations from the standard text. The basic fee for filing UCC-1 financing statements is $25. Fixture filings are $35.<o:p></o:p>Fixture filings must be signed and notarized by the debtor. If the debtor is not the titleholder of the real estate, the fixture filing must also contain the notarized consent of the titleholder.<o:p></o:p>

LOCATIONS FOR FILING

A deed of mortgage is effective as a financing statement filed as a fixture filing, provided that it meets the requirements of UCC 9-502(c). The Real Estate Registry Law also extends the lien of a mortgage to fixtures on the mortgaged property, if the deed of mortgage so provides.<o:p></o:p>

SECURITY INSTRUMENT AS FIXTURE FILING

Guarantees are addressed in Articles 1472 to 1496 of the Puerto Rico Civil Code on suretyship. The guarantee may be subsidiary (not enforceable until remedies have been exhausted against available assets of the primary debtor) or in solidum. Subject to certain exceptions, a guaranty will not be enforceable in the absence of a valid principal obligation.<o:p></o:p>

UNUSUAL PROVISIONS OR REQUIREMENTS

Civil Code Articles 1483 (on exhaustion of remedies against available assets of the primary debtor), 1487 (on allocation of liability among multiple guarantors), 1738 (on subrogation of collection rights against debtor), 1488 (on discharge of guaranty upon release of other guarantors), and 1495 (on discharge of guaranty by reason of extensions or waivers granted in the principal obligation).<o:p></o:p>

<span style="font-family:&quot;Garamond&quot;,serif;font-size:12.0pt;mso-ansi-language:EN-US;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-language:AR-SA;mso-bidi-theme-font:minor-bidi;mso-fareast-font-family:&quot;Times New Roman&quot;;mso-fareast-language:EN-US;mso-fareast-theme-font:minor-latin;">Generally, guarantors are treated as sureties and are entitled to have their obligations strictly construed. If the guaranteed obligation is modified, extended, or otherwise amended without the guarantor’s consent, the guarantor may be discharged of his obligations. However, typical forms contain waivers of the guarantor’s consent to renewals, extensions, modifications, postponement of payment, etc.

SPECIAL PROBLEMS IN ENFORCEMENT

Guarantees are considered accessory obligations and, unless the primary debtor is under bankruptcy jurisdiction, an action against the guarantor should be included as part of the action against the primary debtor.<o:p></o:p>

ISSUES AND GUIDELINES ON DEFICIENCY JUDGMENTS

<span style="font-family:&quot;Garamond&quot;,serif;font-size:12.0pt;mso-ansi-language:EN-US;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-language:AR-SA;mso-bidi-theme-font:minor-bidi;mso-fareast-font-family:&quot;Times New Roman&quot;;mso-fareast-language:EN-US;mso-fareast-theme-font:minor-latin;">An action to foreclose on a mortgage must be brought within 20 years of the note’s maturity date. If the mortgage secures a demand note, the limitations period starts on the issue date of the note. If the mortgage note is pledged to secure a commercial note, the period for the <span style="font-family:&quot;Garamond&quot;,serif;font-size:12.0pt;mso-ansi-language:EN-US;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-language:AR-SA;mso-bidi-theme-font:minor-bidi;mso-fareast-font-family:&quot;Times New Roman&quot;;mso-fareast-language:EN-US;mso-fareast-theme-font:minor-latin;">in personam<span style="font-family:&quot;Garamond&quot;,serif;font-size:12.0pt;mso-ansi-language:EN-US;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-language:AR-SA;mso-bidi-theme-font:minor-bidi;mso-fareast-font-family:&quot;Times New Roman&quot;;mso-fareast-language:EN-US;mso-fareast-theme-font:minor-latin;"> action under the commercial note is 3 years after maturity or acceleration. The period to sue on <span style="font-family:&quot;Garamond&quot;,serif;font-size:12.0pt;mso-ansi-language:EN-US;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-language:AR-SA;mso-bidi-theme-font:minor-bidi;mso-fareast-font-family:&quot;Times New Roman&quot;;mso-fareast-language:EN-US;mso-fareast-theme-font:minor-latin;">in personam<span style="font-family:&quot;Garamond&quot;,serif;font-size:12.0pt;mso-ansi-language:EN-US;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-language:AR-SA;mso-bidi-theme-font:minor-bidi;mso-fareast-font-family:&quot;Times New Roman&quot;;mso-fareast-language:EN-US;mso-fareast-theme-font:minor-latin;"> actions under general contract obligations, including actions based on the breach of contractual obligations or negotiations (<span style="font-family:&quot;Garamond&quot;,serif;font-size:12.0pt;mso-ansi-language:EN-US;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-language:AR-SA;mso-bidi-theme-font:minor-bidi;mso-fareast-font-family:&quot;Times New Roman&quot;;mso-fareast-language:EN-US;mso-fareast-theme-font:minor-latin;">culpa in contrahendo<span style="font-family:&quot;Garamond&quot;,serif;font-size:12.0pt;mso-ansi-language:EN-US;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-language:AR-SA;mso-bidi-theme-font:minor-bidi;mso-fareast-font-family:&quot;Times New Roman&quot;;mso-fareast-language:EN-US;mso-fareast-theme-font:minor-latin;">), is 4 years, unless a different term is provided under applicable law.&nbsp;

STATUTE OF LIMITATIONS PERIOD

Upon satisfaction of the mortgage, the holder of the mortgage note is only required to return the note to the mortgagor, with an appropriate cancellation endorsement. The mortgagor then may cancel the record of the mortgage by delivering the note to a Puerto Rico notary for the execution of a deed of cancellation, with similar formalities as the deed of mortgage, at the mortgagor’s expense. Stamp taxes and recording fees are applicable to cancellation deeds and computed on a similar basis as mortgage deeds. A special judicial cancellation procedure must be undertaken (at the mortgagee’s expense) if the mortgagee cannot locate the original note or it has been destroyed.<o:p></o:p>

REQUIREMENTS FOR RELEASE OF LIEN

<span style="font-family:&quot;Garamond&quot;,serif;font-size:12.0pt;mso-ansi-language:EN-US;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-language:AR-SA;mso-bidi-theme-font:minor-bidi;mso-fareast-font-family:&quot;Times New Roman&quot;;mso-fareast-language:EN-US;mso-fareast-theme-font:minor-latin;">Homestead exemptions do not apply to mortgages.

HOMESTEAD ISSUES

Unless waived or modified as stated below, marriages between parties domiciled in Puerto Rico are subject to a marital partnership regime, and all assets acquired during the marriage are presumed to be property of the marital partnership (similar to community property under common law), pursuant to Article 489 of the Civil Code. The regime may be waived or modified by prenuptial or postnuptial agreement (postnuptial agreements are permissible under Articles 488 and 491 of the Civil Code). Unless stipulated otherwise, either spouse may acquire, manage, encumber, and dispose of community property, except community real estate. Both spouses’ consent (even of a non-borrowing spouse) is required to mortgage community real estate, and both spouses must be parties to the mortgage deed.<o:p></o:p>

COMMUNITY PROPERTY

Registry of Property recording fees for mortgages are $50 for the first $25,000 of the principal amount of the mortgage, plus $4 for each $1,000 or fraction thereof for the excess over $25,000, plus a filing fee of $15.50. An additional $10 fee applies to online filings.<o:p></o:p>

MORTGAGE TAX

Notarial law (4 LPRA §851) requires that internal revenue stamps be canceled on both the original and any certified copy of the deed of mortgage. Since the original must be retained by the notary, at least 1 certified copy is needed to record the mortgage in the registry. Stamp taxes for the original are calculated at the rate of $2 for the 1st $1,000 or fraction thereof, and $1 for every $1,000 or fraction thereafter, based on the principal amount of the mortgage plus the amount of any credit to secure protective advances (typically 10% of the principal sum). The internal revenue stamps for the certified copy are half of those required for the original deed. There is an additional stamp tax, used to support the operation of the Legal Aid Society. The Legal Aid stamp tax on the original deed is $5 for each $50,000 or fraction thereof, based on the principal amount of the mortgage plus the amount of any credit to secure protective advances (typically 10% of the principal sum). The Legal Aid stamp tax on the certified copy is ½ of the stamp tax on the original.<o:p></o:p>

DOCUMENTARY STAMP TAXES

The deed transferring title to the property upon foreclosure of the mortgage requires the same filing fees and documentary stamps as a mortgage, except that the basis for calculation will be the highest of the following: (i) the sum of liens that are senior to the foreclosed mortgage, (ii) the foreclosure sale price, or (iii) the face amount of the foreclosed mortgage.<o:p></o:p>

TRANSFER TAX

Choice-of-law provisions are generally upheld unless the chosen law conflicts with Puerto Rico public policy, or in certain cases such as contracts of adhesion. Out-of-state choice of law provisions may cover substantive law but not procedural matters. Real estate property rights on Puerto Rico properties are subject to Puerto Rico law, so out-of-state choice of law provisions in a mortgage are not likely to be enforceable.<o:p></o:p>

ENFORCEABILITY OF AGREEMENTS AS TO CHOICE OF LAW

Puerto Rico law does not recognize the appointment of a receiver except by court order and upon a showing that no other provisional remedy would be effective (Rule 56.6 of the P.R. Rules of Civil Procedure). The court may require at its discretion the posting of a bond, and while provisions in commercial mortgages waiving the mortgagor’s right to require a bond are common, there is no law or judicial precedent that determines that a contractual waiver limits the court’s discretion to require a bond under Rule 56.6.<o:p></o:p>

RECEIVERSHIP

ANY PROHIBITION OR SPECIAL RULES REGARDING LOAN APPLICATION, LOAN FEES OR COMMITMENT FEES

Persons transacting business in Puerto Rico as mortgage lenders, mortgage brokers or mortgage originators are required to be licensed under the Puerto Rico Act to Regulate the Business of Mortgage Loans, Law No. 247 of December 30, 2010, codified at 7 LPRA §3051 et seq. (“Law 247”), and its implementing Regulation 8017, issued by the Puerto Rico Commissioner of Financial Institutions. Under Law 247, Puerto Rico adopted the uniform rules of the Nationwide Mortgage Licensing System and Registry. Federally regulated institutions holding a Puerto Rico banking license and insurers licensed in Puerto Rico are exempt from the licensing requirements of Law 247. Law 247 does not clearly state that it regulates only residential mortgage loans, but the Commissioner of Financial Institutions has issued rulings concluding that commercial loans, even if secured by residential real estate, are outside the statute’s scope.<o:p></o:p>

LENDER QUALIFICATION AND LICENSURE

Mortgage amendments have the same form and registration requirements as deeds of mortgage. In practice, however, changes to commercial loan terms (other than loan increases that require an increase to the principal amount of the mortgage) usually require no amendment to the terms of the mortgage or the collateral note, since neither of those instruments references the terms of the secured loan.<o:p></o:p>

MODIFICATION – UNUSUAL PROVISIONS OR REQUIREMENTS FOR MODIFICATIONS OF EXISTING MORTGAGE LOANS

The principal environmental legislation in Puerto Rico is the Environmental Public Policy Act (the “EPPA”), codified at 12 LPRA §&nbsp;8001 et seq. The EPPA authorizes the P.R. Environmental Quality Board (“EOB”) to file actions to impose fines and to collect costs incurred by any government agency in enforcing environmental laws, or in responding to or remediating environmental problems at any public or private property. Article 44 of the Real Estate Registry Law (30 LPRA § 6064) authorizes the EQB, or any other government agency authorized to impose penalties for environmental harm to real estate, to file a lien over the affected property. The lien will have priority over liens filed after the agency’s lien.<o:p></o:p>It should be noted that U.S. federal environmental legislation is fully applicable in Puerto Rico, to the same extent as in all states of the union. Federal environmental liens may thus be imposed on properties located in Puerto Rico. Article 44 cited above, provides for the filing of liens by the EPA for response and remediation costs under CERCLA.<o:p></o:p>

ENVIRONMENTAL LIEN LAW ISSUES

There is no local bar opinion report articulating standard accepted opinion practices for Puerto Rico.LABOR AND MATERIAL LIEN CLAIMS (“L&amp;M LIEN”)—PRIORITY ISSUES:<o:p></o:p>Puerto Rico law does not recognize L&amp;M Liens of the nature and scope granted by most U.S. jurisdictions. The only rights recognized in Puerto Rico that have some similarities to the L&amp;M Liens are:<o:p></o:p>1.&nbsp;&nbsp; A right granted to a creditor whose credit is due and payable, to retain property of the debtor that is in the creditor’s possession, until the sum owed is paid or otherwise secured (Articles 1223-1229 of the Civil Code).<o:p></o:p>2.&nbsp;&nbsp; A preferential right granted to suppliers of labor or materials to a construction project to collect, from moneys the developer may owe to the general contractor, any amounts owed by the general contractor to the supplier (Article 1374 of the Civil Code).<o:p></o:p>The first item above may apply to real estate or fixtures therein, but a mortgage would be senior to any such retention right that arises after the filing of the mortgage. It would also be senior to a retention right that arose before the filing of the mortgage, if the right was not recorded in the registry prior to the filing of the mortgage. The second item is not a lien on real estate and cannot affect a mortgage in any way.<o:p></o:p><o:p></o:p>

LEGAL OPINIONS

The American Land Title Association (ALTA) forms are the standard forms used in Puerto Rico. Lenders customarily require the ALTA Loan Policy.<o:p></o:p>

FORMS USUALLY REQUIRED BY LENDER

A number of form endorsements and special endorsements are available upon request. Some of the more commonly used in Puerto Rico are encroachment endorsements and endorsements on building or zoning restrictions.<o:p></o:p>

Puerto Rico

Mortgage Law Summary

Continue reading the
Mortgage Law Summary for Puerto Rico

Puerto Rico

Mortgage Law Summary

Continue reading theMortgage Law Summary for Puerto Rico

Continue reading the
Mortgage Law Summary for Puerto Rico