Q: Father selling property to son in Puerto Rico
My father is from PR and bought land for $36k. I have two sisters but he has decided to sell the land to me for $20k. Will this be a legal transaction as I know PR has some different laws when it comes to family and property rights
A: Unless an economically valid reason is declared in the sales deed, the sales transaction will probably be seen by the Puerto Rico Public Registry as a simulated donation, given that your father is selling you the property below value. The transaction may be rejected by the Public Registry for insufficient stamps and tariffs if the deed is based upon a sales value that is less than the Registry value. They may also reject the "sales" transaction if the deed is not submitted alongside a donation tax form issued by the Puerto Rico Treasury Department. Plus, should your dad die within the following 10 years after the sale, said transaction must be brought to tally with his estate, as a (at least, partial) donation, to determine how much would be owed to the other heirs (your sisters).
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.