Asked in Real Estate Law, Tax Law and Estate Planning for Puerto Rico

Q: Is donation a viable option if the land and property on the land does not have a deed? what would be the impact of an

excuted donation when the land and property are not registered? Was the donation process illegal and can the lawyer be held accountable for malpractice if it impacted tax liabilities to all other heirs of an unregistered, unsegregated land belonging to multiple parties?

1 Lawyer Answer
James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered

A: This is a complex question involving several aspects of Puerto Rican property law, tax law, and legal ethics. I'll break down the key issues and provide some general insights, but please note that this is a situation where consulting a qualified local attorney would be crucial for specific advice.

1. Donation of unregistered property:

In Puerto Rico, it is possible to donate property that is not registered in the Property Registry. However, this comes with significant risks and complications:

- The donation may be valid between the parties involved, but it may not be enforceable against third parties.

- There could be issues with proving ownership and boundaries.

- Unregistered property can complicate future transactions or inheritance processes.

2. Impact of donating unregistered property:

- The donation may be legally binding between the donor and donee, but it might not provide the donee with full legal protection.

- It could create title issues for future transfers or sales.

- There may be difficulties in obtaining mortgages or other financing on the property.

3. Legality of the donation process:

The donation process itself is not necessarily illegal if done properly, even for unregistered property. However, there are potential issues:

- If the property belongs to multiple parties (as suggested in the question), all co-owners would typically need to consent to the donation.

- If the land is unsegregated, there might be legal requirements for segregation before donation that weren't followed.

4. Lawyer's accountability and potential malpractice:

A lawyer could potentially be held accountable for malpractice if they:

- Failed to advise clients properly about the risks of donating unregistered property.

- Did not conduct due diligence to verify ownership and obtain necessary consents.

- Overlooked potential tax implications for the donor and other heirs.

- Failed to advise on the need for property registration or segregation.

5. Tax implications:

Donating unregistered property could indeed have tax implications:

- Gift taxes may apply to the donor.

- The donation could affect future estate taxes for all heirs.

- There might be property tax issues due to the lack of proper registration.

Given the complexity of this situation, involving unregistered and unsegregated land with multiple parties, it would be advisable for all involved parties to:

1. Consult with a qualified real estate attorney in Puerto Rico.

2. Consider regularizing the property's legal status by registering it and potentially segregating it.

3. Evaluate the tax implications with a tax professional.

4. If there are concerns about the lawyer's conduct in the donation process, consider seeking a second legal opinion and potentially filing a complaint with the relevant bar association if malpractice is suspected.

Remember, property law can be quite complex, especially when dealing with unregistered land. Always seek professional legal advice for specific situations.

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.